Board of Medical Examiners v. Terminal-Hudson Electronics, Inc.

73 Cal. App. 3d 376, 140 Cal. Rptr. 757, 1977 Cal. App. LEXIS 1852
CourtCalifornia Court of Appeal
DecidedSeptember 15, 1977
DocketCiv. 49970
StatusPublished
Cited by9 cases

This text of 73 Cal. App. 3d 376 (Board of Medical Examiners v. Terminal-Hudson Electronics, Inc.) 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
Board of Medical Examiners v. Terminal-Hudson Electronics, Inc., 73 Cal. App. 3d 376, 140 Cal. Rptr. 757, 1977 Cal. App. LEXIS 1852 (Cal. Ct. App. 1977).

Opinion

Opinion

HANSON, J.

Terminal-Hudson Electronics, Inc. of California, dba Opti-Cal (hereinafter referred to as Opti-Cal.), has filed an appeal from the judgment of April 27, 1976, in which the superior court in an action filed by the Board of Medical Examiners, State of California, and the Board of Optometiy, State of California (hereinafter referred to collectively as the Board), permanently enjoined and restrained Opti-Cal from advertising the price of eyeglasses or the cost of any commodities

*379 furnished or services performed by a person licensed as a registered dispensing optician.

Facts

On March 21, 1974, the federal district coiirt in the State of Virginia held unconstitutional those Virginia laws which restrained the advertising of the price of prescription drugs by pharmacists (Virginia Citizens Consum. Coun., Inc. v. State Bd. of Pharm. (E.D.Va. 1974) 373 F.Supp. 683). Following that ruling Opti-Cal in July of 1974 placed advertisements in various newspapers throughout the State of California advertising that the price of any prescription eyeglasses at its offices was $19.90, and that the price for single vision contact lenses was $60.50 a pair.

Thereafter the Board in August 1974 obtained a temporary restraining order prohibiting Opti-Cal from further advertising of prices until hearing on its application for a preliminary injunction to issue pending action on the Board’s complaint seeking a permanent injunction against such practices. The Board in its application alleged that Opti-Cal had been issued certificates to engage in the business of a registered dispensing optician at various locations throughout the State of California; that Opti-Cal had advertised in various newspapers of general circulation the price of eyeglasses and contact lenses in violation of sections 2556 1 and 3129 2 of the Business and Professions Code 3 which *380 prohibited the advertising of (a) prices for such commodities and (b) prices for the furnishing of specified kinds of professional services. Copies of the advertisements which contained the material that allegedly violated these statutes were attached to and incorporated by reference in the complaint. As a second cause of action it was alleged that Opti-Cal violated section 651.3 4 which prohibits specified licensees, including registered dispensing opticians and optometrists, from advertising prices for services or commodities furnished in connection with the professional practice or business for which he is licensed. The Board on the basis of these allegations claimed it was entitled to a preliminary injunction restraining Opti-Cal from engaging in various enumerated advertising practices.

While the action to obtain a preliminary injunction was still pending, an order to show cause in re contempt issued against Opti-Cal for allegedly violating the temporary restraining order by continuing price advertising. On October 8, 1974, hearing was held, evidence was taken and the court found that Opti-Cal had willfully violated its order on eight separate occasions, each of which constituted a separate contempt. As a consequence the court imposed a fine of $2,000. On the same day, the court granted leave to the California Optometric Association and various named members of its board of trustees (hereinafter referred to as COA) to file a complaint in intervention in the principal action. The complaint in intervention charged the defendant Opti-Cal with similar violations of sections 2556, 3129 and 651.3 and prayed that upon trial in the present action an injunction be issued permanently enjoining Opti-Cal from in any way or manner whatsoever advertising the price *381 charged for (a) lenses, glasses or frames; (b) optometrical services; or (c) the cost of any commodities furnished or services performed by a person licensed as an optometrist or a registered dispensing optician.

On September 23, 1974, the court issued its preliminary injunction prohibiting Opti-Cal from advertising prices for glasses, lenses or services. The matter was brought to trial in November of 1975. During the course of trial, Opti-Cal with leave of court filed a cross-complaint for declaratory relief alleging that an actual controversy had arisen between the Board and COA on one hand and Opti-Cal on the other; that it affected the legal rights and duties of the parties since during August 1974 Opti-Cal had advertised the price of eyeglasses and contact lenses and plaintiffs sought to obtain an injunction; and that sections 2556, 3129 and 651.3 which plaintiffs sought to enforce violated article I, section 2 of the California Constitution and the First Amendment of the United States Constitution because they constituted a prima facie restraint on the right of defendant Opti-Cal to freely disseminate commercial information. Defendant Opti-Cal accordingly asked that the Board and COA be enjoined from taking any action to enforce the provisions of sections 651.3, 2556 and 3129 relating to the advertising of prices for eyeglasses or contact lenses and prayed that the court should declare those sections unconstitutional as to registered dispensing opticians.

At the close of the trial the court by minute order of November 12, 1975, granted the permanent injunction prayed for by the Board and COA. The court provided that pending entry of final judgment the preliminary injunction should remain in full force and effect. With respect to the cross-complaint the court held the statutes in question to be constitutional. It ordered counsel for plaintiffs to prepare the judgment and findings of fact and conclusions of law “if requested.”

Thereafter the court on motion on December 24, 1975, ordered the preparation of proposed findings. These were prepared and on February 10, 1976, Opti-Cal filed its motion for reconsideration or new trial (which was apparently not acted upon) and its opposition to the proposed findings of fact and conclusions of law. The final judgment including findings of fact and conclusions of law was filed on April 26, 1976, before Va. Pharmacy Bd. v. Va. Consumer Council (1976) 425 U.S. 748 [48 L.Ed.2d 346, 96 S.Ct. 1817], was decided. The trial court found, inter alia, that Opti-Cal had violated sections 2556 and 651.3 by advertising *382 the price of eyeglasses and that these two sections were constitutional with respect to the prohibition against the advertising of prices by registered dispensing opticians. Accordingly, the court permanently enjoined Opti-Cal and those affiliated with that company from performing anywhere in the State of California, directly or indirectly, any or all of the following acts: “A. Advertising or causing to be advertised at a stipulated price or. any variation of such a price or as being free, the furnishing of a lens, lenses, glasses or the frames and fittings thereof. [H] B.

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Bluebook (online)
73 Cal. App. 3d 376, 140 Cal. Rptr. 757, 1977 Cal. App. LEXIS 1852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-medical-examiners-v-terminal-hudson-electronics-inc-calctapp-1977.