California Appellate Tracker

Lacagnina v. Comprehend Systems, Inc.

August 20, 2018

An employee cannot state a claim against his employer based on a theory of “receiving stolen property” on the basis that the employer “received” the employee's labor without paying the agreed price for it.

Penal Code 496 prohibits receiving stolen property with knowledge that it was stolen. Subdivision (c) of the statute grants a private right of action for treble damages and attorney fees to a person injured by a violation of the section’s prohibition. This decision holds that an employee cannot state a claim under the statute against his employer for receiving the employee’s labor without paying the agreed price for it. Labor is not property. Moreover, at the time the employer receives the labor, it is not previously stolen property.

California Court of Appeal, First District, Division 4 (Schulman, J.); August 3, 2018 (partial publication; modified August 14, 2018); 2018 Cal. App. LEXIS 682

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