Beverly Hills Federal Savings & Loan Ass'n v. Superior Court

259 Cal. App. 2d 306, 66 Cal. Rptr. 183, 1968 Cal. App. LEXIS 1975
CourtCalifornia Court of Appeal
DecidedFebruary 21, 1968
DocketCiv. 32060
StatusPublished
Cited by43 cases

This text of 259 Cal. App. 2d 306 (Beverly Hills Federal Savings & Loan Ass'n v. Superior Court) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beverly Hills Federal Savings & Loan Ass'n v. Superior Court, 259 Cal. App. 2d 306, 66 Cal. Rptr. 183, 1968 Cal. App. LEXIS 1975 (Cal. Ct. App. 1968).

Opinion

HUFSTEDLER, J.

Petitioners seek a peremptory writ of mandamus from this court ordering the respondent superior court to set aside its order denying discovery and to issue an order compelling the real parties in interest to answer questions which petitioners have propounded by way of interrogatories and oral deposition.

Petitioners seek this discovery in connection with their action in the respondent superior court in which they seek judicial review, pursuant to section 5258 of the Financial Code, of a decision by the savings and loan commissioner (“commissioner”) granting the application of Equitable Savings and Loan Association (“Equitable”) to operate a branch office in Beverly Hills.

Equitable filed its application for a branch license in Beverly Hills on August 8, 1966. Notices required by section 6004 of the Financial Code were sent to other associations in the state, including petitioners. A hearing was held in connection with Equitable’s application on August 30, 31 and September 1, 2, 1966, as required by section 6005 of the Financial Code. Petitioners were parties to and participated fully in this hearing.

The commissioner’s decision to award Equitable a license to operate a Beverly Hills branch was rendered December 1, 1966. The license was issued to Equitable the same day.

The discovery which petitioners seek to compel relates to three alleged issues set forth in their petition for relief filed in the court below: (1) The commissioner based his decision *312 on secret ex parte communications with Equitable; (2) Equitable deliberately misrepresented to and concealed from the commissioner information regarding its financial condition and other material facts; and (3) the commissioner had abandoned his usual rules, regulations and instructions without notice.

Petitioners are entitled to make reasonable use of discovery devices in the proceedings below, limited only by the requirement that their inquiries be relevant to the subject matter of their cause of action. (Greyhound Corp. v. Superior Court (1961) 56 Cal.2d 355, 372 [15 Cal.Rptr. 90, 364 P.2d 266]; West Pico Furniture Co. v. Superior Court (1961) 56 Cal.2d 407, 416 [15 Cal.Rptr. 119, 364 P.2d 295].) The discovery statutes vest wide discretion in the trial court in granting, denying or limiting discovery. The trial court’s rulings will not be disturbed on appeal, absent a showing that its discretion was abused. (Greyhound Corp. v. Superior Court, supra, 56 Cal.2d at p. 380.)

Scope of Judicial Review in Administrative Mandamus

The subject matter of nonapplicant petitioners’ administrative mandamus petition, to which the discovery must be relevant, is judicial review of proceedings before the commissioner in a branch license application ease. The subject matter is coextensive with the scope of such permissible judicial review.

The scope of review available in an action for administrative mandamus is determined by the nature of the interest which a petitioner seeks to vindicate. This proposition becomes clear from a review of the history of administrative mandamus in California as it developed on a case-by-case basis.

The foundation statute is section 1094.5, subdivision (c) of the Code of Civil Procedure, which provides: “Where it is claimed that the findings are not supported by the evidence, in cases in which the court is authorized by law to exercise its independent judgment on the evidence, abuse of discretion is established if the court determines that the findings are not supported by the weight of the evidence; and in all other eases abuse of discretion is established if the court determines that the findings are not supported by substantial evidence in the light of the whole record. ’ ’

The statute does not supply any definition of the “cases in which the court is authorized to exercise its independent *313 judgment,’’ and it does not purport to define either “weight of the evidence” or “substantial evidence in the light of the whole record.” The meaning of these terms must be ascertained from the cases from which section 1094.5 was developed and from the later decisions applying the section.

Prior to 1936, the scope of judicial review of administrative decisions was relatively well settled: It was the “substantial evidence rule ’ ’ invoked by filing a writ of certiorari to review the administrative decision. But the California Supreme Court’s decision in 1936 in Standard Oil Co. v. State Board of Equalization, 6 Cal.2d 557 [59 P.2d 119], changed all that. The use of certiorari was abolished and the scope of review was drastically altered. The court reasoned that certiorari would lie only to review judicial acts, that administrative agencies could not constitutionally exercise judicial powers, and therefore certiorari could not be used to review administrative decisions. The court thus created a procedural vacuum. Litigants next attempted prohibition, but the court slammed the door on prohibition as firmly as it had upon certiorari. (Whitten v. State Board of Optometry (1937) 8 Cal.2d 444 [65 P.2d 1296, 115 A.L.R. 1].) The condition was partially rectified by the court in Drummey v. State Board of Funeral Directors & Embalmers (1939) 13 Cal.2d 75 [87 P.2d 848], when the court decided that mandamus would lie to review administrative decisions. But the court in the Drummey ease disabused everyone of the notion that “administrative mandamus” was “certiorari” under an assumed name, because the court expressly rejected the “substantial evidence rule” which was an integral part of the certiorari remedy. Lingering hope that the door had been opened a crack by the court’s decision in McDonough v. Goodcell (1939) 13 Cal.2d 741 [91 P.2d 1035, 123 A.L.R. 1205], holding that the substantial evidence rule was untouched in a ease involving denial of an application for a license, appeared dashed by the court’s decision three years later in Laisne v. State Board of Optometry (1942) 19 Cal.2d 831 [123 P.2d 457], The Laisne case held that not only was the trial court to exercise its independent judgment on the facts, but it should conduct a “trial de novo,” in the sense of a complete retrial of the facts upon which the administrative decision was based. Within a year, the court disavowed the trial de novo concept advanced in the Laisne ease and substituted a more qualified form of review in *314 its decision in Dare v. Board of Medical Examiners (1943) 21 Cal.2d 790 [136 P.2d 304], a license revocation case.

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Bluebook (online)
259 Cal. App. 2d 306, 66 Cal. Rptr. 183, 1968 Cal. App. LEXIS 1975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beverly-hills-federal-savings-loan-assn-v-superior-court-calctapp-1968.