California School Employees Ass'n v. Sunnyvale Elementary School District

36 Cal. App. 3d 46, 111 Cal. Rptr. 433
CourtCalifornia Court of Appeal
DecidedDecember 17, 1973
DocketCiv. 30925
StatusPublished
Cited by24 cases

This text of 36 Cal. App. 3d 46 (California School Employees Ass'n v. Sunnyvale Elementary School District) 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
California School Employees Ass'n v. Sunnyvale Elementary School District, 36 Cal. App. 3d 46, 111 Cal. Rptr. 433 (Cal. Ct. App. 1973).

Opinion

Opinion

CALDECOTT, J.

This is an appeal from a judgment upholding the validity of an agreement, designated the “SCORE” Agreement, 1 between respondent School Research and Service Corporation (SRS) and respondent Sunnyvale Elementary School District and other school districts, providing for the performance by SRS of research and development work and services for the school districts.

Appellant California School Employees Association (CSEA) and appellant California Teachers Association (CTA), commenced this action on behalf of themselves and their respective members. They asked the court to enjoin Sunnyvale and SRS from paying or receiving public school funds pursuant to the SCORE Agreement which they had signed, and to enjoin SRS from receiving public school funds pursuant to a SCORE or similar agreement from any other school district in Santa Clara County or soliciting such an agreement from any such district. Thereafter, appellants amended their complaint to seek as additional relief a declaratory *53 judgment that the SCORE Agreement was illegal and void as a whole; that specific provisions of the agreement were likewise illegal and void and that public funds paid or to be paid pursuant to such agreement or similar agreements were and would be illegally expended.

SRS is a private stock corporation organized under the California General Corporation Law primarily to engage in the installation of carpeting in schools and the performance of custodial and maintenance services for schools and school districts. The SCORE Agreement is a contract between SRS and various school districts whereby the participating school districts pay a fee to SRS in exchange for the provision by SRS of certain research and development services. The basic overriding purpose of the program is to enable school districts to collectively obtain the results of massive research and development that are unavailable from public sources and which research and development no individual school district could afford to undertake on its own. This collective effort is manifested in “initial projects” involving transportation and custodial services, and in “general projects” as may be approved for SRS research by its advisory board composed of representatives of the participating districts. The agreement also provides for attention to a participating district’s individual problems in that SRS is required to assist the district in adopting the results of “initial” and “general” projects to a district’s particular needs. A district can request “specific” projects at no extra cost, as long as the total costs for these specific projects do not exceed 35 percent of the subscription fee.

Following are the relevant provisions of the SCORE Agreement between Sunnyvale and SRS.

Agreement

“Whereas School Research and Service Corporation (‘SRS’) has fof several years been conducting, and in the future will continue to conduct, research and development programs concerned, inter alia, with the development of new and improved techniques, methods and systems for the management and control of school property and equipment; and

“Whereas, SRS and its personnel have demonstrated expertise in the areas of finance, economics, accounting, engineering and administration, which expertise is an essential ingredient in such research and development programs; and

*54 “II. For purposes of this Agreement the terms ‘Initial Projects,’ ‘General Projects’ and ‘Specific Project’ shall have the following meanings:

“A. Initial Projects shall mean the programs defined in Appendix B attached hereto, and/or such other initial programs as shall be mutually agreed between SRS and Subscriber;

“B. General Project shall mean a program of research and development which has a goal of general interest to more than one Subscriber, and which is undertaken by SRS pursuant to guidance from the Advisory Board as described in Section XI, below;

“C. Specific Project shall mean a program of research and development, study, consultation or other professional assistance which is undertaken at the specific request of an individual Subscriber pursuant to Sec tion VII, below, and is not necessarily of interest to any other Subscriber.

“IV. During the term of this Agreement SRS shall carry out research and development upon the Initial Projects, and shall use its best efforts to achieve the objectives set forth for those research and development programs.

“VI. With respect to the research and development carried out pursuant to Section IV, and subject to the cost provisions of Section IX, SRS shall to the extent requested by Subscriber consult with and/or assist Subscriber in adapting the results to Subscriber’s particular use.

“VII. Subject to the cost provisions of Section IX, SRS shall carry out Specific Projects as requested by Subscriber.

“VIII. A. Any physical products (for example manuals, equipment, supplies, furnishings, and fixtures) which result from, or the availability of which is made known by, research and development programs conducted by SRS pursuant to this Agreement, and which SRS then manufactures or otherwise acquires and sells, shall be made available by SRS for purchase by Subscriber on a reimbursed cost basis. If Subscriber is obligated to make such purchases through public bidding procedures, SRS will submit a bid on the aforesaid reimbursed cost basis. All physical products purchased by Subscriber pursuant to this Section VIII shall belong to Subscriber subject to the obligations of Section XV and the license of Section XVI.

“IX. A. Requests by Subscriber for services under Sections VI and VII are to be performed by SRS without further compensation so long as *55 the costs thereof as defined in Subsection C of this Section IX do not in the aggregate exceed, as of the time the requested services are rendered by SRS, thirty-five percent (35%) of the total fees actually paid by Subscriber to said time pursuant to Section X.

“XVI. It is understood and expressly agreed that SRS shall retain and own all rights in the nature of ideas, inventions, literary and artistic products and the like, as well as any patents or copyrights resulting therefrom, said ideas, etc., collectively referred to herein as ‘intellectual property,’ developed by SRS under this Agreement.”

It should be noted that appellants also rely on two promotional brochures which introduced the SCORE scheme. One promotional brochure was attached as an exhibit to interrogatories served by CSEA and CTA upon SRS. Brochure I was issued and distributed to school districts prior to the time the SCORE program was begun. The brochure was not admitted into evidence. A second promotional brochure was attached as an exhibit to the answers made by SRS. Brochure II was issued and distributed to school districts after the commencement of the SCORE program. Brochure II was admitted into evidence.

SRS began operating the SCORE program on May 1, 1969. At that time there were 12 participating school districts, including Sunnyvale.

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Bluebook (online)
36 Cal. App. 3d 46, 111 Cal. Rptr. 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-school-employees-assn-v-sunnyvale-elementary-school-district-calctapp-1973.