Hickey v. Roby

273 Cal. App. 2d 752, 77 Cal. Rptr. 486, 1969 Cal. App. LEXIS 2224
CourtCalifornia Court of Appeal
DecidedJune 9, 1969
DocketCiv. 25534
StatusPublished
Cited by14 cases

This text of 273 Cal. App. 2d 752 (Hickey v. Roby) 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
Hickey v. Roby, 273 Cal. App. 2d 752, 77 Cal. Rptr. 486, 1969 Cal. App. LEXIS 2224 (Cal. Ct. App. 1969).

Opinion

ELKINGTON, J.

—William J. Hickey, plaintiff below, appeals from an order of the superior court setting aside a permanent injunction which purported to enjoin defendant Vallecito Water Company (Vallecito), defendant Camille Garnier, Vallecito’s president, and defendant W. H. Roby, Vallecito’s secretary, from “transferring, cancelling or reversing” on Vallecito’s books without Hickey’s consent, 18,003 shares of Vallecito stock registered to Hickey. Defendants Vallecito, Garnier and Roby have made no appearance on this appeal. The only respondent is the California Public Utilities Commission appearing, as permitted by Public Utilities Code section 2101, in the name of the People of the State of California. (Unless otherwise stated, all statutory references hereinafter will be to Public Utilities Code.) The commission had intervened in the superior court action. It was on the commission’s motion that the subject injunction was set aside.

This appeal is one of 16 proceedings of one kind or another commenced before different tribunals by the various parties, all relating to the subject matter of this appeal—Hickey’s claim to 18,003 shares of Vallecito stock. Those proceedings include an action numbered 558,551 commenced in the Superior Court of the City and County of San Francisco, for the purpose of quieting title to the stock.

The parties disagree as to what constitutes the record on this appeal. Somewhat informally the superior court was asked by the commission to consider the following reported decisions: Re San Gabriel Water Company, 61 Cal. P.U.C. 509, Decision No. 66140; Re Vallecito Water Company, 62 Cal. P.U.C. 699, Decision No. 67261; Re Suburban Water Company, 63 Cal. P.U.C. 574, Decision No. 68217; and Re Transfers of stock by Vallecito Water Co. to Calfin Co. and Toll & Co., Case No. 8086, 66 Cal. P.U.C. 654, Decision No. 71795. Hickey offered no objection to the commission’s request. At oral argument on this appeal Hickey contended that these decisions were not properly before the lower court. We ascertain, however, that throughout the proceedings helow both parties and the court treated these matters as properly before the court for its consideration. Also in the briefs filed with this court each party refers extensively to the reported *756 decisions and their contents. We conclude that the superior court was requested to, and did, take judicial notice of them. This was proper under Evidence Code sections 451, 453. This reviewing court is also required to judicially notice the decb sions. (Evid. Code, § 459.)

Each of the reported decisions we have mentioned was final at the time of the superior court hearing. Such decisions are conclusive and binding on the parties thereto. (See § 1709; Los Angeles Ry. Corp. v. Los Angeles, 16 Cal.2d.779, 783-784 [108 P.2d 430]; Sale v. Railroad Com., 15 Cal.2d 612, 616 [104 P.2d 38].)

The briefs of each of the parties to this appeal are replete with recitals of factual circumstances which are entirely unsupported by the record. As to such recitals as have been found upon our study of the record to be supported, there has been no substantial compliance with rule 15, Rules on Appeal, requiring that the “statement of any matter in the record shall be supported by appropriate reference to the record.” Our exposition and consideration of the factual base of this appeal will, of course, be limited to such matters as were placed before the superior court, and on which its decision was based. We state such facts, as we must, in the light most favorable to the commission, which prevailed below, giving it the benefit of every reasonable inference and resolving conflicts in support of the trial court’s order. (Crawford v. Southern Pac. Co., 3 Cal.2d 427, 429 [45 P.2d 183] ; 3 Witkin, Cal. Procedure (1954) p. 2246.)

Vallecito was a public utility water corporation. As indicated, its president was defendant Gamier. Gamier was also president of Suburban Water Systems (Suburban), a public utility geographically adjacent to Valleeito, and of Calfin Company (Calfin), a wholly owned subsidiary and the alter ego of Suburban.

One of Calfin’s purposes was to do for Suburban things which ‘‘ Suburban could not do for itself. ’ ’ One of the things Suburban could not do for itself was purchase stock of another public utility without permission of the commission. (See §852.) Gamier and Suburban’s directors wished to obtain control of Valleeito. Suburban accordingly advanced $271,000 (or $279,000) to Calfin for the purpose of buying Valleeito stock. Suburban in turn borrowed the money from a bank; it was found necessary to “pipeline” the funds through Suburban. As purchases of Valleeito stock were made by Calfin, the stock was delivered to Toll and Company *757 (Toll), the bank’s agent (or nominee or “street name”) as security for the bank’s loans to Suburban.

It is noted that as early as March 14, 1961, counsel for Calfin had advised Gamier that in his opinion the purchase by Calfin of any stock in a public utility without the consent of the commission would be a violation of Public Utilities Code section 852.

By January 1964 Calfin had acquired a total of 18,003 shares of Vallecito stock. The entire amount was held by Toll as security for the bank’s loans to Suburban, subject otherwise to the order of Calfin.

Earlier, in May 1963, San Gabriel Valley "Water Company (San Gabriel), a public utility, also adjacent geographically to Vallecito’s area, applied for authority to purchase up to all the issued and outstanding shares of Vallecito. This application, on October 15, 1963, was granted by the commission. (61 Cal: P.U.C. 509.)

In August 1963 Suburban applied to the commission for authorization to purchase the assets (not stock) of Vallecito. The application, on May 26,1964, was denied. The commission found that Suburban had failed to show its financial ability to carry out the terms of its proposed agreement, and had failed to show that the granting of the application was in the best interest of Suburban’s consumers. (62 Cal. P.U.C. 699, 712.) In the same proceedings the commission considered Calfin’s purchases of Vallecito stock. It found (May 26, 1964) that “The purchase of Vallecito stock by Calfin in the manner described herein is tantamount to the purchase of said stock by Suburban and is in violation of Section 852 of the Public Utilities Code and is therefore void.” (Italics added.)

Thereafter Suburban sought authority from the commission to purchase the Vallecito stock held by Toll for Calfin. However, before any decision by the commission, and on November 4, 1964, Toll transferred the subject 18,003 shares to plaintiff Hickey.

We now relate the circumstances of the acquisition by Hickey of the Vallecito stock.

Hickey personally advanced no money for the Vallecito shares.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Avina v. Superior Court CA4/1
California Court of Appeal, 2023
Gerawan Farming, Inc. v. Agricultural Labor Relations Board
247 Cal. App. 4th 284 (California Court of Appeal, 2016)
Anchor Lighting v. Southern California Edison Co.
47 Cal. Rptr. 3d 780 (California Court of Appeal, 2006)
Hillsboro Properties v. Public Utilities Commission
133 Cal. Rptr. 2d 343 (California Court of Appeal, 2003)
Rainbow Disposal Co. v. Escondido Mobilehome Rent Review Bd.
64 Cal. App. 4th 1159 (California Court of Appeal, 1998)
Rainbow Disposal Co. v. Escondido Mobilehome Rent Review Board
75 Cal. Rptr. 2d 746 (California Court of Appeal, 1998)
Greener v. Workers' Compensation Appeals Board
863 P.2d 784 (California Supreme Court, 1993)
American Drug Stores, Inc. v. Stroh
10 Cal. App. 4th 1446 (California Court of Appeal, 1992)
Barnett v. Delta Lines, Inc.
137 Cal. App. 3d 674 (California Court of Appeal, 1982)
Villarruel v. Arreola
66 Cal. App. 3d 309 (California Court of Appeal, 1977)
Southern Pacific Transportation Co. v. Public Utilities Commission
556 P.2d 289 (California Supreme Court, 1976)
Product Research Associates v. Pacific Telephone & Telegraph Co.
16 Cal. App. 3d 651 (California Court of Appeal, 1971)
Neubrand v. Superior Court
9 Cal. App. 3d 311 (California Court of Appeal, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
273 Cal. App. 2d 752, 77 Cal. Rptr. 486, 1969 Cal. App. LEXIS 2224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hickey-v-roby-calctapp-1969.