Evans v. Department of Motor Vehicles

21 Cal. App. 4th 958, 26 Cal. Rptr. 2d 460, 94 Daily Journal DAR 552, 94 Cal. Daily Op. Serv. 289, 1994 Cal. App. LEXIS 12
California Court of Appeal·Decided January 12, 1994·No. Docket Nos. C011373, C012371·Published·Cited by 31 cases

Opinions

Opinion

SCOTLAND, J.

The Department of Motor Vehicles (DMV) and its director, A.A. Pierce, appeal from the trial court’s issuance of a peremptory writ of mandate setting aside DMV’s order revoking the automobile dismantler’s license of James M. Evans, doing business as Rio Linda Auto Wreckers and A to Z Auto Dismantlers, and from the court’s subsequent order awarding attorney fees to Evans pursuant to Code of Civil Procedure section 1028.5 or, alternatively, Government Code section 800. Evans appeals from the trial court’s order denying an award of attorney fees pursuant to the federal Civil Rights Act (42 U.S.C. § 1988).

The key issues presented in this appeal are (1) whether California’s statutory scheme for serving notice of an accusation and hearing seeking to revoke an automobile dismantler’s license is reasonably calculated to give the licensee notice of the accusation and hearing and, thus, satisfies due process of law, and (2) whether DMV abused its discretion in rejecting Evans’s claim that his default should be set aside on the ground that, although the notice was in fact delivered to his established place of business, he did not receive it.

The trial court concluded that, even though DMV complied with the statutory scheme and the notice was delivered to Evans’s business, the statutory scheme is unconstitutional as applied to the facts of this case because Evans did not receive actual notice of the proceeding (a person residing on the business property received the notice in the mail but allegedly failed to give it to Evans) and DMV did not provide Evans with a hearing to establish lack of actual notice.

We agree with DMV that the trial court erred in so ruling. As we shall explain, the statutory scheme for serving notice of a disciplinary proceeding by certified mail at the dismantler’s established place of business satisfies due process because it is reasonably calculated to provide the dismantler with notice of the proceeding. That the dismantler allegedly did not receive the notice which was served at the place of business does not render the statutory scheme unconstitutional because actual notice is not a necessary [964]*964element of proper service in a disciplinary proceeding. Even though the service complied with due process of law, DMV nevertheless had discretion to grant relief from default upon an adequate showing that Evans did not in fact receive notice of the accusation and hearing. However, the bare, unsworn allegation in Evans’s petition for reconsideration alleging he did not receive notice, unaccompanied by any showing that the lack of notice was not due to his avoidance of service or inexcusable neglect, was insufficient to compel DMV to set aside Evans’s default. Consequently, we shall reverse the trial court’s order granting a peremptory writ of mandate, and will direct the court to enter a new and different order denying Evans’s petition. Because Evans no longer is the prevailing party, we shall reverse the award of attorney fees.

Facts and Procedural Background

On May 24, 1989, DMV issued an accusation against Evans, alleging numerous violations of statutes and regulations governing automobile dismantling, and seeking to suspend or revoke his automobile dismantler’s license. The accusation, along with a notice of hearing, was served by certified mail at the address of record for Evans’s established place of business, 6715 West Sixth Street in Rio Linda, California. The return receipt which had two signature lines, one marked “address” and the other marked “agent,” was signed by Linda Courtain on the line marked “address.”

On August 14, 1989, the evidentiary hearing was held before an administrative law judge. Evans did not appear at the hearing. On November 7, 1989, DMV issued its decision revoking Evans’s license. On November 15, 1989, a copy of the decision was served by certified mail at Evans’s business address. The return receipt was signed by Evans’s wife on the line marked “address.”

On December 11, 1989, Evans wrote to DMV requesting reconsideration of its decision on the ground he did not receive notice of the hearing. DMV set aside the decision revoking Evans’s license and remanded the matter “not for a hearing de novo but for the sole purpose of allowing [Evans] to offer evidence in extenuation and mitigation” concerning the appropriate license discipline.

At the rehearing, Evans’s attorney asked to have a hearing de novo “on all matters” (including the threshold issue whether Evans’s businesses had violated the law) because Evans had not received notice of the first hearing. DMV’s counsel responded that, since DMV had limited the rehearing to production of evidence in mitigation or extenuation concerning the appropriate discipline, Evans was not entitled to attack the findings made at the [965]*965previous hearing that Evans had violated applicable statutes and regulations governing automobile dismantlers. The administrative law judge agreed with DMV and restricted the hearing accordingly.

Following the rehearing, the administrative law judge found Evans had not shown sufficient mitigation or extenuation to modify the original order revoking his license. This decision was adopted by DMV. On May 7, 1990, a DMV agent demanded that both of Evans’s businesses, Rio Linda Auto Wreckers and A to Z Auto Dismantlers, cease operation at noon and that Evans turn over all his books and records to DMV.

Evans then filed a petition for writ of mandate pursuant to Code of Civil Procedure section 1094.5 and 42 United States Code section 1983. He argued that DMV revoked his license without proper notice and hearing, thereby violating his right to due process under both the Fourteenth Amendment to the United States Constitution and article I, section 7 of the California Constitution.

In his declaration in support of the petition, Evans stated he did not receive a copy of the accusation and notice of hearing prior to the administrative hearing on August 14, 1989. He declared the property used by Rio Linda Auto Wreckers at 6715 West Sixth Street in Rio Linda is a ten-acre parcel with five structures on it: a small cottage at the front of the property adjacent to West Sixth Street, a garage directly behind the cottage, an office building, and two storage sheds. Until July 1989, mail for Rio Linda Auto Wreckers was delivered to a mailbox across the street. Linda Courtain, who signed the return receipt, resided in the small cottage on the property with her brother, Ralph Bettes. Bettes was employed by Rio Linda Auto Wreckers between February 1985 and July 1989. According to Evans, neither Bettes nor Courtain was authorized to receive mail on behalf of Evans or his businesses. Evans claimed that no one gave him the accusation and notice of hearing. He did not learn of the hearing until November 24, 1989, when he received a copy of DMV’s decision to revoke his license. He declared he had never been given an opportunity to be heard on the merits of the charges contained in the accusation.

DMV retorted that it properly provided notice of the accusation and hearing in compliance with Government Code sections 8311 and 11505, subdivision (c), which permit service by registered or certified mail where, as here, a statute or agency rule requires the respondent to file his or her address with the agency and to notify the agency of any change in address.

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Evans v. Department of Motor Vehicles, 21 Cal. App. 4th 958, 26 Cal. Rptr. 2d 460, 94 Daily Journal DAR 552, 94 Cal. Daily Op. Serv. 289, 1994 Cal. App. LEXIS 12 (Cal. Ct. App. 1994).

21 Cal. App. 4th 958 (Evans v. Department of Motor Vehicles) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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