Chrysler Corp. v. New Motor Vehicle Board

12 Cal. App. 4th 621, 15 Cal. Rptr. 2d 771, 93 Cal. Daily Op. Serv. 378, 93 Daily Journal DAR 757, 1993 Cal. App. LEXIS 32
CourtCalifornia Court of Appeal
DecidedJanuary 15, 1993
DocketD016270
StatusPublished
Cited by6 cases

This text of 12 Cal. App. 4th 621 (Chrysler Corp. v. New Motor Vehicle Board) 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
Chrysler Corp. v. New Motor Vehicle Board, 12 Cal. App. 4th 621, 15 Cal. Rptr. 2d 771, 93 Cal. Daily Op. Serv. 378, 93 Daily Journal DAR 757, 1993 Cal. App. LEXIS 32 (Cal. Ct. App. 1993).

Opinion

Opinion

TODD, J.

On this appeal from a judgment granting a petition of Chrysler Corporation (Chrysler) for a peremptory writ of mandate under Code of Civil Procedure section 1094.5, we are presented with a question of statutory construction concerning the directory or mandatory effect, and the meaning of, the Vehicle Code 1 section 3067 phrase: “If the board fails to act within 30 days after such hearing, within 30 days after the board receives a proposed decision where the case is heard before a hearing officer alone, or within such period as may be necessitated by Section 11517 of the Government Code or as may be mutually agreed upon by the parties, then the proposed action shall be deemed to be approved.”

Here, the New Motor . Vehicle Board (Board) commenced processing a decision of an administrative law judge (ALJ) conditionally approving a Dodge dealership’s move to a different location by setting the matter for review and consideration at a date within 30 days of the Board’s receipt of the ALJ’s proposed decision. On the 31st day after it received the proposed decision, the Board issued a notice of board action stating that 5 days earlier it had “considered the proposed decision as well as the administrative record .... After such consideration, the Board continued this matter to be again considered at the next meeting of the Board in order to allow further review of the evidence submitted at the evidenciary [szc] hearing on these protests.” Although the Board held additional meetings, received information from Chrysler nearly two months later, caused the ALJ to take additional evidence on certain matters and issued its decision denying the dealership move within thirty days after the ALJ submitted supplemental *624 findings of fact to the Board, the trial court held the quoted statutory language required the “proposed action,” meaning the ALJ’s decision, to be deemed approved. The trial court construed “act” in the phrase “fails to act” as referring to the Board’s decision. Thus, since the Board had not made its decision within 30 days of its receipt of the ALJ’s proposed decision (and under Gov. Code, § 11517, subd. (d), it did not rule within 100 days of receipt of the transcripts from the ALJ), the trial court concluded the Board failed to act within the time required and ordered a peremptory writ of mandate commanding the Board to set aside its decision and instead enter the proposed decision of the ALJ. The court also ruled the Board did not comply with its duty to rule within 100 days of receipt of the transcripts of the hearing by the ALJ, and this resulted in the ALJ’s proposed decision being deemed approved.

We have concluded the conduct of the Board within 30 days of its receipt of the ALJ’s proposed decision was an “act” within the meaning of the word in the phrase “fails to act.” Accordingly, the “deemed approved” provision of section 3067, relating to the “proposed action,” did not become applicable. We thus reverse the judgment, order the court to vacate its order granting the writ and remand the case for further proceedings in administrative mandamus, including formally determining whether substantial evidence supports the Board’s decision.

Facts 2

On February 28, 1989, Chrysler gave written notice to real parties in interest and appellants, La Mesa Dodge and Kearney Mesa Dodge 3 (Protesting Parties), pursuant to section 3062, that it wished to establish a Dodge dealership in San Diego’s Mission Valley. At the time, Chrysler had a failing Dodge dealership in the Point Loma area under the proprietorship of Alan Johnson. Robert Townsend owned property 2.8 miles to the east, in Mission Valley. It was on this property that Chrysler sought to establish a dealership.

The Protesting Parties are both within 10 miles of the proposed dealership. Pursuant to section 3062, both Protesting Parties protested to the Board. On October 13, 1989, the ALJ issued a proposed decision in the consolidated matters, denying the protests and permitting the establishment of the Dodge dealership on the Townsend property. On the same date, the ALJ submitted his findings of fact, determination of issues and proposed decision to the Board.

*625 On November 9, 1989, the Board reviewed and discussed the proposed decision and heard statements from the attorneys for the Protesting Parties and Chrysler. 4 On November 14, 1989, the Board issued a “Notice of Board Action,” saying “On November 9, 1989 the New Motor Vehicle Board considered the proposed decision as well as the administrative record in the above-entitled matters.” After such consideration, the Board continued the matter to be again considered at its next meeting in order to allow further review of the evidence submitted at the evidentiary hearings on these protests.

On December 13, 1989, the Board heard further statements from the attorneys for the Protesting Parties and for Chrysler and ordered the parties “to provide to the Board the planning potential assigned or to be assigned to the proposed dealership . . . .” This information was to be provided to the Board by way of declaration under penalty of perjury no later than January 2, 1990. Chrysler filed such a declaration on January 5, 1990.

On April 3, 1990, the Board remanded the protests to the ALJ for the purpose of taking additional evidence on (1) Chrysler’s planning potentials for San Diego dealerships and method for determining planning potential, (2) the facilities and capital that Chrysler will require of the proposed dealership, (3) Chrysler’s unit sales figures for national, California and San Diego levels, and (4) whether the proposed dealership will be able to comply with local governmental restrictions. The remand hearings were held on May 7 and May 11, 1990.

The ALJ submitted supplemental findings of fact to the Board on June 25, 1990. On July 20, 1990, the Board issued a decision sustaining the protests.

*626 The trial court held the Board “did not ‘act’ within 30 days of receipt of the proposed decision. The Board did not render a decision within 30 days but instead deferred decision on the matter within that period.” The court cited Klitgaard & Jones, Inc. v. San Diego Coast Regional Com. (1975) 48 Cal.App.3d 99, 110 [121 Cal.Rptr. 650], as instructing “that ‘to act’ means, in essence, to render, and not to defer, a decision.”

The trial court found there was no mutual agreement to an extension of time and that the Board did not meet the requirements of Government Code section 11517 which “appears to be mandatory as it provides for a consequence—adoption of the proposed decision—for a failure to do the act within the time commanded. Woods v. Department of Motor Vehicles (1989) 211 Cal.App.3d 1263 [259 Cal.Rptr. 885].”

With respect to Government Code section 11517, including its rule under subdivision (d) that the ATI’s proposed decision shall be deemed adopted 100 days after delivery of the proposed decision to the agency “unless within that time the agency commences proceedings to decide the case upon the record .

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Bluebook (online)
12 Cal. App. 4th 621, 15 Cal. Rptr. 2d 771, 93 Cal. Daily Op. Serv. 378, 93 Daily Journal DAR 757, 1993 Cal. App. LEXIS 32, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chrysler-corp-v-new-motor-vehicle-board-calctapp-1993.