Retired California Supreme Court Justice Edward A. Panelli died on Saturday at the age of 92.
"Justice Edward Panelli served with honor and integrity over a long legal career and as a distinguished member of our California Supreme Court," Chief Justice of California Patricia Guerrero said in a statement. "His unwavering commitment to justice and fairness was rooted in his humble upbringing as the child of immigrants, earning him the respect and admiration of his colleagues and the broader legal community. I extend our deepest condolences to Justice Panelli's family and friends as we mourn the loss of a great jurist and beloved member of our court. His memory and impact on the legal community will endure."
Panelli served on the Supreme Court from 1985 to 1994. Before that, he was on the 6th District Court of Appeals, from 1983 to 1985, the last year as presiding justice of the court, and on the Santa Clara Superior Court from 1972 to 1983.
While his career was rooted in Santa Clara County, his opinions influenced California law in several areas, including property rights, emotional distress claims, personal injury cases, and food-related injury claims, attorneys noted.
In Moore v. Regents of the University of California 51 Cal. 3d 120 (1990), Panelli wrote for the court that individuals do not own their discarded blood and tissue, significantly impacting medical research by allowing the use of these materials without patient consent. In another opinion he wrote, Jolly v. Lilly & Co. 44 Cal. 3d 1103 (1988), the court addressed the statute of limitations in personal injury lawsuits, deciding that the clock starts when the injury is discovered, not when it occurs. Yet another one, Thing v. La Chusa 48 Cal. 3d 644 (1989), set boundaries for emotional distress claims, allowing only those closely related to the victim and present at the scene to make such claims.
Knight v. Jewett, 3 Cal. 4th 296 (1992) acknowledged the inherent risks in sports, ruling that participants accept these risks. That same year, in Mexicali Rose v. Superior Court 1 Cal. 4th 617 (1992), Panelli wrote the opinion in which the court clarified food-related injury claims, establishing that there must be proof of a foreign substance or defect, protecting consumers while safeguarding businesses from unfounded lawsuits.
Born on Nov. 23, 1931, in Santa Clara, Panelli's early life was shaped by resilience and hard work. A child of the Depression, he spent four years in Italy as a young boy before returning to California, where his parents worked in canneries and packing houses.
Panelli's legal journey began in 1955 when he earned his law degree from Santa Clara University (his family's home used to be on the property that would later become the campus) and joined a law practice with his first cousin, Louis Pasquinelli. He quickly made a name for himself, handling everything from corporate proxy battles to representing criminal defendants.
His career took a significant turn in 1972 when Gov. Ronald Reagan appointed him to the Santa Clara County Superior Court. Eleven years later, Gov. George Deukmejian elevated him to the 6th District Court of Appeal. In 1985, he ascended to the California Supreme Court. His confirmation came during a tumultuous time, as California voters had just ousted Chief Justice Rose Bird and two other justices over their opposition to the death penalty.
But even when retirement came, in 1994, Panelli couldn't step away from the law. He joined JAMS and became one of the most sought-after mediators and arbitrators in the state, handling around 200 mediations and five arbitrations annually. "We are saddened to hear the news of Justice Panelli's passing and offer our sincere condolences to his family during this difficult time," Chris Poole, JAMS CEO, said in a statement Monday.
Attorneys who appeared in front of Panelli praised him for his ability to connect with clients on a personal level.
"He was one of the great judges," noted James McManis of McManis Faulkner, who knew Panelli at every stage of his career.
McManis said that Panelli was always his first choice as a mediator because he resolved a lot of cases. "He was terrific, he got the job done, and he was a lovely person," he said in a phone call.
McManis recalled Panelli had a real ability to connect as he shuttled between parties during a mediation session. "After meeting with our side, my client said, 'That man is like a priest,'" McManis recalled. "He had that quality about him - he was gentle and very smart."
Matthew B.F. Biren of Biren Law Group also worked with Panelli many times after he began private judging. Over the years, he said he got to know him well, both as a person and as a lawyer and judge.
"As a person, Justice Panelli was a wonderful man, extremely intelligent, hardworking and committed to fairness and justice," Biren wrote in an email. "As a judge, and particularly as a mediator, he had a unique ability to size up the situation and find a way to get the job done; often facilitating settlements where it looked like a deal was impossible."
One of Biren's favorite stories was the mediation of a bad faith case. "The insurer was in trouble and was open to settling the matter; they had a committee at home office monitoring the negotiations. The parties, however, were considerably apart in their valuations.
"The carrier's lawyers clearly did not want the case settled," he continued. "It was apparent that if the case did not get resolved right then, the lawyers would try to move the carrier from considering settlement to trying the case. Understanding that he had to strike while the carrier was hot to trot, Justice Panelli made a multi-million-dollar mediator's proposal, for a number he thought could work, giving the parties a deadline of one hour to respond."
The case was settled.
"This example was emblematic of Justice Panelli's sensitivity to the parties' perspectives and creativity in figuring out how to get the deal done," Biren wrote.
"The one thing about Justice Panelli is that he can be friends with both sides, and it would not influence his opinion or value of the case," said Paul R. Fine of Schonbuch Hallissy LLP, who knew the judge for 30-plus years.
"He was a great jurist and a true gentleman," he said. "He had the ability to bring both sides to the center of the dispute. He was a very good lawyer, but he was a better person. He had a sense of what was morally and ethically correct. It's hard to put into words."
After a brief pause, Fine added that, "Words can't define the character of the man."
Panelli's expertise was not limited to insurance coverage disputes; he also handled employment matters, wage-and-hour cases, and even entertainment industry disputes. His work mediating claims stemming from the 1994 Northridge earthquake lasted well into the early 2000s.
Michael J. Bidart of Shernoff Bidart Echeverria LLP remembered it was one of Panelli's first big cases as a mediator.
"He just impressed me in how he could connect with people," Bidart said in a phone conversation. "It stems from the fact where he was from. He was a people's person, who worked from a very young age, and nothing was a given to him."
Bidart also noted that Panelli wrote two seminal insurance decisions as a justice. Horrace Man v. Barbara B., 214 Cal. App. 3D 850 (1993) addressed the question of whether an insurer has a duty to defend a teacher insured under an educator's liability policy in a minor student's action seeking damages resulting from the teacher's sexual and other misconduct. The court concluded that the insurer did have a duty to defend because there were unresolved factual issues related to the teacher's potential liability under the policy based on misconduct separate from sexual molestation. In Montrose Chemical Corp. v. Admiral Ins. Co., 10 Cal. 4th 653 (1995), Panelli's opinion clarified insurance coverage obligations in cases involving environmental contamination.
"It's a combination of legal intellect and respect, and a recognition of the impact that these impactful decisions would have on society, for innocent victims when those claims could be spread out over society," Bidart said. "He had a good understanding of the law and how it affected society."
Catherine A. Conway of Gibson Dunn & Crutcher LLP recalled Panelli as a "smart, intuitive and thoughtful jurist."
"I always appreciated his insight and advice on mediations, he was tireless in trying to resolve a matter, working long hours and finding innovative solutions," Conway wrote in an email. "On a personal front, he was always talking about his family and the importance of the time he spent with them. His wise presence will be sorely missed."
Kurt C. Peterson of Reed Smith LLP said, "Justice Panelli combined old school convictions and work ethic with an abundance of common sense that was extraordinary. He was a quick study and always the perfect gentleman."
Irvine's Marc A. Trachtman called Panelli "the consummate professional."
"He settled the cases that everyone thought were impossible to settle. He was always beyond prepared on the facts and thoughtful in his analysis of the issues," Trachtman wrote in an email.
Panelli is survived by three adult sons, and three grandchildren. His wife died in 2019.
Ricardo Pineda
ricardo_pineda@dailyjournal.com
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