Hollywood Circle, Inc. v. Department of Alcoholic Beverage Control

361 P.2d 712, 55 Cal. 2d 728, 13 Cal. Rptr. 104, 1961 Cal. LEXIS 251
CourtCalifornia Supreme Court
DecidedMay 8, 1961
DocketL. A. 26184
StatusPublished
Cited by88 cases

This text of 361 P.2d 712 (Hollywood Circle, Inc. v. Department of Alcoholic Beverage Control) 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
Hollywood Circle, Inc. v. Department of Alcoholic Beverage Control, 361 P.2d 712, 55 Cal. 2d 728, 13 Cal. Rptr. 104, 1961 Cal. LEXIS 251 (Cal. 1961).

Opinions

TRAYNOR, J.

— In 1955 the Department of Alcoholic Beverage Control initiated proceedings for the revocation of petitioner’s 11 on-sale liquor license.” Petitioner was charged [730]*730with a violation of section 25601 of the Business and Professions Code,1 and after a hearing the department revoked the license. Petitioner attempted to appeal the department’s decision to the Alcoholic Beverage Control Appeals Board. The board dismissed the appeal on the ground that it was not timely. Petitioner then sought a writ of mandate to compel the board to consider the appeal.

In the petition for the writ petitioner contended that section 1013 of the Code of Civil Procedure2 applies to appeals to the board and that the appeal was therefore timely. The superior court denied the writ, and the District Court of Appeal affirmed. (Hollywood Circle, Inc. v. Department of Alcoholic Beverage Control, 153 Cal.App.2d 523, 527 [314 P.2d 1007].) We denied a petition for hearing, and the United States Supreme Court denied certiorari.

One year later this court expressly disapproved the Hollywood Circle ease and held that section 1013 does apply to appeals to administrative agencies such as the board. (Pesce v. Department of Alcoholic Beverage Control, 51 Cal.2d 310, 312-313 [333 P.2d 15].) Petitioner then filed with the board an “Application for Belief from Erroneous Dismissal of Appeal.’’ The hoard denied the application and in this proceeding in mandamus petitioner seeks to compel the hoard to reinstate its appeal. Petitioner contends that the dismissal of the appeal by the board was a void act and that neither [731]*731section 23090 of the Business and Professions Code,3 which prohibits reconsiderations and rehearings, nor the doctrine of res judicata, applies to void acts.

The Dismissal of the Appeal by the Appeals Board was not a Void Act.

In support of its contention, petitioner invokes cases holding that a dismissal of a valid appeal is an act in excess of jurisdiction, and may therefore be reviewed in a proceeding in mandamus. (Edwards v. Superior Court, 159 Cal. 710, 713 [115 P. 649]; cf. Corrigan v. Superior Court, 72 Cal.App. 383, 385 [236 P. 364].) These cases, however, were concerned, not with the doctrine of res judicata, but with the propriety of review by extraordinary writ. (See Abelleira v. District Court of Appeal, 17 Cal.2d 280, 287, 288 [109 P.2d 942, 132 A.L.R 715].) An act that may be in excess of jurisdiction so as to justify review by prerogative writ (Abelleira v. District Court of Appeal, supra, at 288; Fortenbury v. Superior Court, 16 Cal.2d 405, 407 [106 P.2d 411]) will nevertheless be res judicata if the court had jurisdiction over the subject and the parties. (Signal Oil etc. Co. v. Ashland Oil etc. Co., 49 Cal.2d 764, 776-778 [322 P.2d 1].)

Petitioner does not contend that the board lacked jurisdiction over the parties. Nor can it be successfully contended that the board lacked jurisdiction over the subject. The subject was the procedure for filing an appeal to the board. Obviously the board had jurisdiction to determine whether a party followed the procedure prescribed for appearing before it. The board may have erred in its interpretation of the law prescribing the maximum time for filing an appeal, but “ ‘ [J]urisdietion [over the subject], being the power to hear and determine, implies power to decide a question wrong as well as right. ’ ” (Signal Oil etc. Co. v. Ashland Oil etc. Co., supra, 49 Cal.2d 764, 778.)

The Board’s Order was Bes Judicata

The doctrine of res judicata “. . . is based upon the sound public policy of limiting litigation by preventing a party who has had one fair trial on an issue from again [732]*732drawing it into controversy.” (Bernhard v. Bank of America, 19 Cal.2d 807, 811 [122 P.2d 892].) This policy can be as important to orderly administrative procedure as to orderly court procedure. Some administrative determinations, however, differ greatly from court decisions and greater flexibility is required in applying the doctrine of res judicata to them. (See Groner and Sternstein, Bes Judicata in Federal Administrative Law, 39 Iowa L. Rev. 300, 302-305.) “The key to a sound solution of problems of res judicata in administrative law is recognition that the traditional principle of res judicata as developed in the judicial system should be fully applicable to some administrative action, that the principle should not be applicable to other administrative action, and that much administrative action should be subject to a qualified or relaxed set of rules concerning res judicata. ’ ’. (2 Davis, Administrative Law, 568; compare Aylward v. State Board etc. Examiners, 31 Cal.2d 833, 838 [192 P.2d 929] and Empire Star Mines Co. v. California Emp. Com., 28 Cal.2d 33, 48 [168 P.2d 686] with French v. Rishell, 40 Cal.2d 477, 480 [254 P.2d 26] and Goodman Bros., Inc. v. Superior Court, 51 Cal.App.2d 297, 301 [124 P.2d 644]; see Parker, Administrative Res Judicata, 40 Ill. L. Rev. 56; 29 Cal. L. Rev. 741.)

The doctrine is not applied when the decision of the agency is made pursuant to its rule-making powers (Olive Proration etc. Com. v. Agricultural etc. Com., 17 Cal.2d 204, 208 [109 P.2d 918]) or when “. . . the legislature intended that the agency should exercise a continuing jurisdiction with power to modify or alter its orders to conform to changing conditions. ...” (Olive Proration etc. Com. v. Agricultural etc. Com., supra, at 209.) Likewise the public interest in preventing the practice of a profession by one not qualified may require a further review of the law applicable to a license to practice. (See Aylward v. State Board etc. Examiners, 31 Cal.2d 833 [192 P.2d 929].)

The function of the administrative agency in the present case, however, is the purely judicial one of reviewing another agency’s decision to determine whether that decision conforms to the law and is supported by substantial evidence. (Bus. & Prof.

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Bluebook (online)
361 P.2d 712, 55 Cal. 2d 728, 13 Cal. Rptr. 104, 1961 Cal. LEXIS 251, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hollywood-circle-inc-v-department-of-alcoholic-beverage-control-cal-1961.