Kingston Constructors, Inc. v. Washington Metropolitan Area Transit Authority

928 P.2d 581, 14 Cal. 4th 939, 59 Cal. Rptr. 2d 866, 97 Cal. Daily Op. Serv. 248, 97 Daily Journal DAR 375, 1997 Cal. LEXIS 5
CourtCalifornia Supreme Court
DecidedJanuary 9, 1997
DocketNo. S053577
StatusPublished
Cited by6 cases

This text of 928 P.2d 581 (Kingston Constructors, Inc. v. Washington Metropolitan Area Transit Authority) 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.

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Kingston Constructors, Inc. v. Washington Metropolitan Area Transit Authority, 928 P.2d 581, 14 Cal. 4th 939, 59 Cal. Rptr. 2d 866, 97 Cal. Daily Op. Serv. 248, 97 Daily Journal DAR 375, 1997 Cal. LEXIS 5 (Cal. 1997).

Opinion

Opinion

MOSK, J.

We granted review in this cause to address a question of first impression concerning the Washington Metropolitan Area Transit Authority Compact (hereafter the WMATA Compact or the compact) and its creature, the Washington Metropolitan Area Transit Authority (hereafter WMATA or the authority), which is a regional instrumentality empowered, among other things, to provide transit facilities in and around the District of Columbia and neighboring parts of the State of Maryland and the Commonwealth of Virginia, comprising the Washington Metropolitan Area Transit Authority Zone (hereafter the WMATA Zone).

The question is: Do the courts of the State of California have jurisdiction of actions brought by or against WMATA?

For the reasons that follow, we conclude that the answer is: No.

I

On May 28, 1992, Power Energy Industries (hereafter PEI), a California corporation, brought an action in the Los Angeles Superior Court, bearing No. BC056254, against Kingston Constructors, Inc. (hereafter Kingston), another California corporation, and WMATA. PEI asserted various claims in [942]*942contract and in tort, and sought damages and costs including attorney fees, based on allegations to the following effect: WMATA entered into a contract with Kingston to supply and install certain electrical transformers, with PEI as an intended third party beneficiary to design and manufacture the items; Kingston in turn entered into a subcontract with PEI to design and manufacture the electrical transformers; WMATA and Kingston proceeded to breach duties they owed PEI pursuant to the contract and the subcontract, and caused it injury; they also violated obligations they bore it under the law of torts, and caused it injury in this way as well.

By letter dated July 24, 1992, WMATA informed the clerk of the superior court that it would not enter an appearance in No. BC056254 because, among other reasons, under section 81 of the WMATA Compact the superior court did not have jurisdiction of the action as to the authority. Within days, WMATA communicated its position to PEI, and PEI in turn communicated it to Kingston.

It appears that, on or about September 9, 1992, on PEI’s motion, the superior court dismissed Kingston as a party from No. BC056254 without prejudice.

On October 19, 1992, on PEI’s application, the clerk of the superior court entered WMATA’s default in No. BC056254.

It appears that, on or about November 10, 1992, PEI brought an action in the superior court, bearing No. BC068273, against Kingston alone—an action that was substantially similar to No. BC056254.

On December 22, 1993, as part of the settlement of No. BC068273, PEI assigned to Kingston its claims against WMATA in No. BC056254.

On May 5, 1994, the superior court rendered judgment on default in No. BC056254,1 in favor of Kingston as assignee of PEI’s claims and against WMATA, awarding damages in the sum of $6,934,758, plus pre- and postjudgment interest, and attorney fees in the sum of $50,655.

On September 1, 1994, on WMATA’s motion, the superior court issued an order vacating as void the judgment in No. BC056254.2 It concluded that, under section 81 of the WMATA Compact, it did not have jurisdiction of the action.

[943]*943On November 9, 1994, Kingston filed a notice of appeal from the superior court’s order in No. BC056254.3

On April 3, 1996, in an opinion subsequently certified for publication, Division Two of the Second Appellate District of the Court of Appeal affirmed the superior court’s order in No. BC056254.4 It held that, under section 81 of the WMATA Compact, the lower court did not have jurisdiction of the action.

On July 10, 1996, on Kingston’s petition, we granted review. We now affirm.

II

The issue before us is whether California courts have jurisdiction of actions brought by or against WMATA. Its resolution requires us to set out the background.

WMATA is a regional instrumentality empowered, among other things, to provide transit facilities in and around the District of Columbia and neighboring parts of Maryland and Virginia, which comprise the WMATA Zone. (Pub.L. No. 89-774 (Nov. 6, 1966) 80 Stat. 1324.) Its ultimate source of funding is Congress, the district, and these two states. (Id., § 1, 80 Stat. 1331.)

The WMATA Compact established WMATA and created the WMATA Zone. The compact was initiated and consummated by Congress for federal purposes, including the “effective performance of the functions of the United States Government located within the [National Capital] Region” and the “preservation of the beauty and dignity of the Nation’s Capital.” (Pub.L. No. 89-774 (Nov. 6, 1966) preamble, 80 Stat. 1324; see generally, Sen.Rep. No. 1491, 89th Cong., 2d Sess., pp. 3-5, 27.) The compact was also intended to further joint federal, state, and local objectives in the “Region,” such as the “satisfactory movement of people and goods,” the “alleviation of present and future traffic congestion,” “economic welfare and vitality,” “orderly growth and development,” and the “comfort and convenience of . . . residents and visitors.” (Pub.L. No. 89-774 (Nov. 6, 1966) preamble, 80 Stat. 1324.)

The WMATA Compact was entered into by the three signatories within the WMATA Zone. The compact was joined by the District of Columbia, [944]*944through enactment by Congress (Pub.L. No. 89-774 (Nov. 6, 1966) 80 Stat. 1324-1325) pursuant to the United States Constitution and its powers thereunder, specifically: (a) article I, section 8, clause 17, which grants it power “[t]o exercise exclusive Legislation in all Cases whatsoever, over [the] District” as “the Seat of the Government of the United States”; (b) article I, section 8, clause 3, which grants it power “[t]o regulate Commerce . . . among the several States”; and (c) article I, section 8, clause 18, which grants it power “[t]o make all Laws which shall be necessary and proper for carrying [its other powers] into Execution." The compact was also joined by Maryland, which is one of the two states that border the district and come within the zone, through enactment by its General Assembly. (1965 Md. Laws, ch. 869.) The compact was joined as well by Virginia, which is the other of the two states that border the district and come within the zone, through enactment by its General Assembly. (1966 Va. Acts, ch. 2.)

The WMATA Compact was consented to by Congress (Pub.L. No. 89-774 (Nov. 6, 1966) preamble, 80 Stat. 1324-1325) under article I, section 10, clause 3 of the United States Constitution, which provides that “[n]o State shall, without the Consent of Congress, . . . enter into any . . . Compact with another State . . . .”

So consented to, it became a law of the United States. (See, e.g., Texas v. New Mexico (1987) 482 U.S. 124, 128 [96 L.Ed.2d 105, 113-114, 107 S.Ct. 2279].) As such, it is “supreme,” pursuant to article VI, clause 2 of the United States Constitution, “any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.” It thereby renders without effect any such state provision that is in conflict. (See, e.g., State of Pennsylvania v. The Wheeling &c. Bridge Co. et al. (1852) 54 U.S. (13 How.) 518, 566 [14 L.Ed.

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928 P.2d 581, 14 Cal. 4th 939, 59 Cal. Rptr. 2d 866, 97 Cal. Daily Op. Serv. 248, 97 Daily Journal DAR 375, 1997 Cal. LEXIS 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kingston-constructors-inc-v-washington-metropolitan-area-transit-cal-1997.