CA Court Rejects San Diego Workers Asbestos Suit
A California appeals court ruled 40 San Diego city employees exposed to asbestos during 2018 renovations must seek damages through workers' comp.
A California appeals court has ruled that approximately 40 San Diego city employees who were exposed to asbestos during building renovations cannot sue the city in civil court. The 4th District Court of Appeal affirmed a lower court’s decision, holding that workers’ compensation is the exclusive legal remedy for the claims.
The ruling, filed February 17, 2026, stems from a lawsuit brought by employees who worked in the Executive Complex at 1010 Second Ave. in downtown San Diego. The workers alleged that city officials knowingly kept them at their desks while contractors disturbed an estimated 40 tons of asbestos-containing material during a renovation project that began in mid-2017.
What Happened at 1010 Second Ave.
The city of San Diego leased several floors of the privately owned 25-story Executive Complex, housing approximately 550 employees. In 2017, building owner Tower 180 Owner LLC began a renovation project that included removing about 5,000 square feet of asbestos-containing fireproofing and replacing windows.
Employees began reporting health problems almost immediately after construction started in August 2017. Workers described bronchial issues, deep coughing, burning throats, difficulty swallowing, and shortness of breath. Some were placed on inhalers. Construction crews wore respirators while demolishing windows, but inadequate sealing allowed debris to drift into occupied offices.
In January 2018, the San Diego County Air Pollution Control District inspected the site after an emergency notification that asbestos had been disturbed during lobby renovations. Seven separate samples taken between January 25 and 29, 2018, showed asbestos content ranging from 20% to 65% in fireproofing material and wall debris. Four of those samples came from floors occupied by city workers.
The county issued seven violations against the building owner for improper material analysis, failure to remove all regulated asbestos, unsafe handling, inadequate containment, untimely disposal, and creating a public nuisance.
On January 31, 2018, the city announced it was moving all 550 employees from the building. A senior city official later acknowledged that the city had been reluctant to break the lease due to more than $1 million in potential liability.
The Lawsuit and Court Rulings
Approximately 40 employees filed suit in San Diego Superior Court in June 2019, alleging intentional infliction of emotional distress and fraudulent concealment. They sought punitive damages, attorney fees, lifetime medical insurance, and regular cancer monitoring.
In May 2024, Judge Kenneth J. Medel granted summary judgment for the city, finding that workers’ compensation exclusivity applied. The appeals court affirmed that decision.
The central legal question was whether the “fraudulent concealment” exception to workers’ compensation exclusivity applied. Under California law, that exception requires proof of three elements: the employer concealed the existence of the injury, concealed the connection between the injury and employment, and the injury was aggravated following the concealment.
The appeals court found the workers could not clear that bar. To invoke the exception, employees must demonstrate that the employer had “actual, prior knowledge” of the work-related injury and deliberately concealed it. The court held that constructive knowledge, meaning the employer “should have known,” is not sufficient.
“It is not enough to rely on evidence from which a trier of fact might conclude the city should have known of their injuries before they were reported,” the court wrote. “Only evidence of actual knowledge would raise an issue of fact precluding the grant of summary judgment.”
What Happens Next
Attorney Michael Aguirre, a former San Diego city attorney who represents the workers, said he plans to first seek a rehearing before the appeals court. If that fails, he intends to petition the California Supreme Court for review.
“We cannot and will not accept that they are not entitled to a jury trial until we have exhausted every legal means,” Aguirre said.
The decision is unpublished, meaning it cannot be cited as precedent in other California cases, though it reflects the court’s application of existing law on workers’ compensation exclusivity.
For employers and insurers, the ruling reinforces broad protections under workers’ compensation, shielding employers from civil litigation even in cases involving toxic workplace exposures. For workers, it significantly narrows the path to civil court in asbestos exposure cases.
The 101 Ash St. Connection
After the evacuation from the Executive Complex, some displaced workers were relocated to 101 Ash St., a former Sempra Energy building the city had leased. That building was later found to have its own asbestos violations and was shut down in January 2020. It remains vacant, costing the city $18,000 per day in lease payments.
References
San Diego Union-Tribune. (2026-02-23). State appeals court rejects asbestos lawsuit by San Diego city workers.
https://www.sandiegouniontribune.com/2026/02/23/state-appeals-court-rejects-asbestos-lawsuit-by-san-diego-city-workers/
Risk & Insurance. (2026-02-25). California Court Reinforces Workers' Compensation Exclusivity in Asbestos Exposure Case.
https://riskandinsurance.com/california-court-reinforces-workers-compensation-exclusivity-in-asbestos-exposure-case/
San Diego Union-Tribune. (2024-05-14). Judge dismisses lawsuit accusing San Diego officials of exposing city workers to asbestos.
https://www.sandiegouniontribune.com/2024/05/14/judge-dismisses-lawsuit-accusing-san-diego-officials-of-exposing-city-workers-to-asbestos/
Reader Q&A
Frequently Asked Questions
What is workers' compensation exclusivity?
Under California law, workers’ compensation is generally the sole remedy for employees injured on the job. This means employees cannot sue their employers in civil court for workplace injuries and must instead pursue claims through the no-fault workers’ comp system. There are limited exceptions, including fraudulent concealment, but courts have set a high bar for proving them.
Can workers exposed to asbestos still file for workers' compensation?
The court’s ruling does not prevent the workers from filing workers’ compensation claims. It only bars them from pursuing civil lawsuits seeking punitive damages and other remedies beyond what workers’ comp provides. Workers’ compensation covers medical expenses and wage replacement but does not allow for punitive damages or jury trials.
How does asbestos exposure in office buildings differ from industrial exposure?
Asbestos was widely used as fireproofing and insulation in commercial buildings constructed before the 1980s. When these materials are disturbed during renovations or demolition, microscopic fibers can become airborne and pose health risks to building occupants. Unlike industrial settings where exposure is often recognized and monitored, office workers may not realize they are being exposed.
What is the average settlement for asbestos?
Average settlements for asbestos claims vary by disease, with mesothelioma cases typically ranging from $1 million to $2 million per plaintiff across multiple defendants. Lung cancer claims from asbestos average $100,000 to $400,000, while non-malignant conditions like asbestosis often settle for under $50,000. Trial verdicts average higher at $5 million to $20 million for mesothelioma but are less common than settlements. These figures reflect data from law firm reports through 2025 and remain consistent with modest inflation adjustments. Asbestos trust fund payouts average $300,000 to $400,000 total for eligible mesothelioma claims.
Can I sue for being exposed to asbestos?
People with mesothelioma or other asbestos-related diseases, such as lung cancer or asbestosis, can pursue lawsuits against companies that manufactured, supplied, or installed asbestos products if they provide medical documentation of the diagnosis and evidence of exposure history. Claims may also be filed through asbestos bankruptcy trusts established by over 100 companies, often on a sliding scale based on disease severity, or as individual lawsuits requiring proof of negligence. A diagnosis is typically required, as exposure alone does not qualify for personal injury compensation. Statutes of limitations vary by state and often start upon diagnosis. Secondhand exposure, such as from family members’ work clothes, has supported successful claims.
Will 30 minutes of asbestos exposure hurt you?
No level of asbestos exposure is safe, but 30 minutes of exposure carries a low risk of causing mesothelioma or other asbestos-related diseases, as risk follows a dose-response relationship tied more to long-term occupational exposure. OSHA notes short exposures as brief as a few days can cause mesothelioma, yet evidence shows one-time or brief incidents like 30 minutes are unlikely to harm unless involving high fiber concentrations, poor ventilation, or amphibole asbestos types. Factors such as visible dust or enclosed spaces elevate potential harm, while intact materials outdoors pose minimal threat. People with any exposure history report details to physicians, as diseases may appear 20-50 years later.
How much compensation do you get for asbestos?
Compensation for asbestos-related diseases varies significantly by diagnosis and how the claim is resolved. People with mesothelioma typically receive $1 million to $1.4 million through lawsuit settlements, with first payments often arriving within 6 to 12 months. Those whose cases go to trial may receive $5 million to $20.7 million, though fewer than 5% of cases reach a jury. Asbestos trust fund claims average $300,000 to $400,000 and process faster, with payouts as early as 6 weeks. People with asbestos-related lung cancer generally receive $100,000 to $400,000 in settlements, while those with non-malignant conditions like asbestosis typically receive under $50,000. Veterans with service-connected mesothelioma may qualify for monthly VA benefits of approximately $3,930 to $4,437.
What is wrongful death for mesothelioma?
In mesothelioma cases, wrongful death refers to a civil lawsuit brought after a person with mesothelioma dies from an asbestos-related illness that is alleged to have been caused by a company’s negligence. These claims are typically filed by close family members or an estate representative against manufacturers, employers, or other entities that made or sold asbestos products while hiding or downplaying the risks. Compensation often targets funeral and burial costs, remaining medical bills, loss of the person’s income and benefits, and the family’s loss of companionship and support. Reports from litigation trackers such as Mealey’s indicate average mesothelioma wrongful death settlements of about $1 million to $1.4 million, while trial verdicts can be higher when cases go before a jury. Most states impose statutes of limitations, usually around 1 to 3 years after death, which shape when these lawsuits can be filed.