Cal Pacific Collections, Inc. v. Powers

449 P.2d 225, 70 Cal. 2d 135, 74 Cal. Rptr. 289, 1969 Cal. LEXIS 320
CourtCalifornia Supreme Court
DecidedJanuary 20, 1969
DocketL. A. 29592
StatusPublished
Cited by15 cases

This text of 449 P.2d 225 (Cal Pacific Collections, Inc. v. Powers) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cal Pacific Collections, Inc. v. Powers, 449 P.2d 225, 70 Cal. 2d 135, 74 Cal. Rptr. 289, 1969 Cal. LEXIS 320 (Cal. 1969).

Opinion

BURKE, J.

In this mandamus proceeding, the trial court decreed that defendants 1 acted in excess of their jurisdiction in initiating and prosecuting disciplinary proceedings against plaintiffs under the Collection Agency Act (Bus. & Prof. Code, §6850 et seq.) 2 and that such proceedings should be dismissed. Defendants appeal. We have concluded that the court ruled correctly with respect to certain of the plaintiffs, but that there is statutory authorization for the proceedings against the other plaintiffs.

*138 . In July 1958 plaintiff Cal Pacific Collections Inc., a California corporation (Cal Pacific), was first issued a state license to engage in the collection agency business. 3 The three individual plaintiffs were its corporate officers at that time and at all relevant times thereafter.

- 'On October 26, 1960, following a hearing on an earlier accusation, Cal Pacific’s license was revoked for failure to maintain the required balance in its clients’ trust account; however, the revocation was stayed and Cal Pacific was placed on .probation for three years. At the same time the qualification certificate theretofore issued to plaintiff Martin Lawson (secretary of Cal Pacific) as a “qualified person” to be in active charge of a collection agency office (§§ 6859, 6906, 6921) was revoked, with the revocation also stayed for three years.

' -.On February 28, 1963, plaintiff Martin Lawson and plaintiffs Marco and Blfriede Lawson (president and vice president, respectively, of Cal Pacific) terminated their employment'with Cal Pacific.

On March 4, 1963, Cal Pacific voluntarily surrendered its license pursuant to section 6949; surrender of the license was accepted effective March 15, 1963; and on March 18, 1963, the Bureau advised Cal Pacific in writing of such acceptance. ¡ The qualification certificate previously issued to Martin Lawson continued in force until June 30, 1963, at which time the certificate was revoked pursuant to section 6893 as then effective, for nonpayment of the continuation fee.

On June 20, 1963, the Bureau initiated disciplinary. proceedings against the four plaintiffs by filing an accusation against them. 4 Following a hearing, the Director in February Í964 ■ found Cal Pacific guilty of various violations, and ordered that its license together with any right of .reinstatement or renewal be revoked, that Martin Lawson’s qualifica *139 tion certificate and any right of reinstatement or renewal he revoked, and that the three individual plaintiffs be disqualified from holding any office or employment in the collection agency business. This mandamus proceeding followed.

The sole issue is whether the defendants had jurisdiction to proceed with and to impose disciplinary action against the several plaintiffs. At no time have plaintiffs challenged the sufficiency of the evidence to support the charges on which the discipline was imposed. The trial court ruled that defendants had acted in excess of their jurisdiction under the Collection Agency Act in force prior to certain amendments which became effective on September 21,1963. 5

Jurisdiction Over Cal Pacific

Defendants predicate their claim of jurisdiction over Cal Pacific on section 6949.1, 6 and in particular the provision that “the voluntary surrender of a license . . . shall not deprive the director of jurisdiction to proceed with any . . . disciplinary proceeding against such license. ...”

Cal Pacific contends that the acceptance by the Bureau of its voluntary surrender of license in March' 1963 constituted an administrative determination that no disciplinary action or proceeding was then pending with which “to proceed” as contemplated by section 6949.1. The contention lacks merit. Such a construction would render the quoted portion of the section redundant and a nullity, thereby violating one of the most elementary principles of statutory construction (See People v. Victor (1965) 62 Cal.2d 280, 301 [26] [42 Cal.Rptr. 199, 398 P.2d 391]; Select Base Materials, Inc. v. Board of Equalization (1959) 51 Cal.2d 640, 645 [335 P.2d 672].)

Section 6949, 7 pursuant to which Cal Pacific voluntarily surrendered its license, at the times here involved specified *140 that such a voluntary surrender could be made only “so long as no disciplinary action is then pending against said licensee.

...” Hence, as Cal Pacific concedes, if disciplinary action was then pending, the license was not subject to voluntary surrender. The provision which follows, in section 6949.1—that voluntary surrender shall not deprive the director of jurisdiction to proceed with any disciplinary proceeding against such license—would be rendered nugatory if held to apply only to a disciplinary proceeding pending at the time of the license surrender—since section 6949, as just noted, did not authorize voluntary surrender if a disciplinary action was then pending. It follows that the disciplinary action with which the director may proceed subsequent to voluntary surrender of a license was not limited to proceedings already pending at the time of such surrender, and that Cal Pacific’s voluntary license surrender did not operate to oust the director of jurisdiction here.

It bears note that a contrary construction would permit a licensee to evade disciplinary action for the evils which the sections were clearly designed to prevent. If the licensee who had voluntarily surrendered his license (necessarily at a time when no disciplinary action was pending against him) could thereby successfully defeat the jurisdiction of the director to take disciplinary measures for violations thereafter discovered, the licensee could apply for a new license after the surrender and thereby evade section 6906, subdiviosion (d), which provides generally that the director may refuse to issue a license if the applicant or any officer, manager, etc., thereof has had a license revoked for cause. (See also section 6950, providing for reinstatement within the limited time of a license revoked for failure to pay the continuation fee.) Statutes are to be interpreted to give a reasonable result consistent with legislative purpose and not evasive thereof. (Kusior v. Silver (1960) 54 Cal.2d 603, 620 [7 Cal.Rptr. 129, 354 P.2d 657]; see also Harvey v. Davis (1968) 69 Cal.2d 362, 370 [71 Cal.Rptr. 129, 444 P.2d 705].)

Jurisdiction Over Qualification Certificate of Martin Lawson

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Bluebook (online)
449 P.2d 225, 70 Cal. 2d 135, 74 Cal. Rptr. 289, 1969 Cal. LEXIS 320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cal-pacific-collections-inc-v-powers-cal-1969.