Andrew Black sued both the Los Angeles County Metropolitan Transportation Authority (MTA) and Public Transportation Services Corporation (PTSC) for wrongful termination, Labor Code violations, and breach of contract. The PTSC is a nonprofit public benefit corporation that MTA created. Black, however, did not file a prelitigation government claim before filing his lawsuit.
The trial court sustained demurrers without leave to amend. The court concluded that both MTA and PTSC were public entities entitled to Government Claims Act (GCA) protections and that PTSC was not required to register separately because it functioned as an organizational unit of MTA.
On appeal, Black conceded MTA was a public entity but challenged PTSC’s public entity status. The California Court of Appeal held that PTSC is a public entity for purposes of the GCA because MTA used its statutory authority to create it; and that PTSC exists to further MTA’s public transportation mission, operates subject to MTA’s control, and functions as MTA’s instrumentality in managing and supplying employees. The Court rejected the argument that nonprofit public benefit corporations can never be public entities and explained that public entity status depends on the entity’s creation, governmental purpose, and relationship to government. Public entity status is not based only on traditional sovereign powers like taxation or eminent domain.
The Court agreed, however, that Black should be allowed to amend his complaint to allege an excuse from the claims presentation requirement based on PTSC’s alleged failure to comply with statutory registration requirements. A public agency must register both with the Secretary of State (SOS) and the county clerk of each county in which it maintains an office, and failure to do so excuses a plaintiff from filing a government claim. (Gov. Code sections 946.4 and 53051.)
Although MTA submitted evidence that it registered PTSC with the SOS, it failed to demonstrate registration with the relevant county clerks. The Court rejected the trial court’s conclusion that PTSC’s relationship with MTA excused it from independent registration, holding that each public agency must comply with the statute on its own. The Court affirmed the judgment in favor of MTA, reversed the judgment in favor of PTSC, and remanded to allow Black to amend his complaint.
Black v. Los Angeles County Metropolitan Transportation Authority, 116 Cal. App. 5th 677 (2025).