Lone Star Security & Video, Inc. v. Bureau of Security & Investigative Services

209 Cal. App. 4th 445, 147 Cal. Rptr. 3d 173, 2012 Cal. App. LEXIS 987
CourtCalifornia Court of Appeal
DecidedAugust 28, 2012
DocketNo. B235217
StatusPublished
Cited by4 cases

This text of 209 Cal. App. 4th 445 (Lone Star Security & Video, Inc. v. Bureau of Security & Investigative Services) 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
Lone Star Security & Video, Inc. v. Bureau of Security & Investigative Services, 209 Cal. App. 4th 445, 147 Cal. Rptr. 3d 173, 2012 Cal. App. LEXIS 987 (Cal. Ct. App. 2012).

Opinion

[448]*448Opinion

MALLANO, P. J.

At an administrative hearing, the Department of Consumer Affairs, Bureau of Security and Investigative Services (Bureau), revoked the alarm company license of Lone Star Security & Video, Inc. (Lone Star), and also revoked the probationary qualified manager certificate of Bruce Boyer. Lone Star and Boyer filed a petition for a writ of administrative mandate in the trial court, challenging the Bureau’s decision. The trial court denied the petition in relevant part, finding the Bureau’s revocation decision was supported by substantial evidence.

On appeal, Lone Star and Boyer (sometimes collectively referred to as plaintiffs) contend the Bureau’s decision was not supported by substantial evidence. We conclude otherwise and affirm.

I

BACKGROUND

The Bureau is a state agency that operates under the auspices of the Department of Consumer Affairs. It is charged with administering and enforcing the Alarm Company Act (sometimes Act) (Bus. & Prof. Code, §§ 7590-7599.75; all undesignated section references are to that code). The primary purpose of the Act is to protect the public. (§ 101.6.) Pursuant to the Act, the Bureau issued an alarm company license to Lone Star in 1993 and a qualified manager certificate to Boyer in 1994. (See §§ 7590.2 [alarm company operator], 7590.1, subd. (j) [qualified manager].) The director of the Bureau may revoke an alarm company operator license or a qualified manager certificate. (§ 7599.61.) The Alarm Company Operator Disciplinary Review Committee (Committee), composed of three licensed alarm company operators and two members of the public, is charged with handling disciplinary proceedings under the Act. (§ 7591.17 [establishing Committee].)

A. Administrative Proceeding Resulting in Boyer’s Probation

In December 2004, the Bureau filed an accusation against Lone Star and Boyer based on Boyer’s recent plea of nolo contendere to a misdemeanor charge of disturbing the peace. In May 2005, the Committee conducted an [449]*449informal hearing and recommended that Lone Star’s license and Boyer’s certificate be revoked. Lone Star and Boyer sought review before an administrative law judge (ALJ). (Lone Star Security & Video, Inc. v. Bureau of Security & Investigative Services (2009) 176 Cal.App.4th 1249, 1251-1253 [98 Cal.Rptr.3d 559] (Lone Star I).)

“[T]he ALJ issued a written decision, finding Boyer ‘used deadly force to protect a sign from vandalism. This reveals an ignorance of the law necessary for a person who is licensed to protect the property and person of California citizens, and it evinces a serious lack of judgment on [Boyer’s] part.’ Concluding that this constituted good cause to discipline Boyer, the ALJ nevertheless stayed the order of revocation and placed Boyer’s license on probation for three years. The ALJ further concluded that cause was not established to discipline Lone Star, the alarm company operator, because the conviction was against Boyer and no theory of derivative liability was pled or argued.” (Lone Star I, supra, 176 Cal.App.4th at p. 1253, italics added.) The director adopted the ALJ’s decision, effective April 23, 2007, and ordered Boyer to pay $2,570 in costs to the Bureau and Lone Star to pay a $100 civi

“In May 2007, Boyer petitioned the superior court for a writ of [administrative] mandate directing the bureau to set aside the [stayed] revocation of [his certificate]. Following a hearing on May 2, 2008, the trial court denied the petition. Among other things, it found substantial evidence supported the bureau’s finding that Boyer’s conviction was substantially related to his fitness as an alarm company qualified manager: ‘[T]he conduct for which Boyer was convicted, and for which he was disciplined administratively, . . . was directly related to his alarm and security business, and no evidence in the administrative record shows or even purports to show otherwise.’ ” (Lone Star I, supra, 176 Cal.App.4th at p. 1254.) The Court of Appeal affirmed, upholding the three-year probation of Boyer’s certificate. (Id. at p. 1259.) Thereafter, the Bureau commenced the current proceeding to revoke Lone Star’s license and Boyer’s certificate.

B. Administrative Proceeding Resulting in Revocation

On July 13, 2009, the Bureau filed a first amended accusation and a petition to revoke Boyer’s probation, thereby lifting the stay on the revocation of his certificate. The amended accusation listed six charges warranting discipline against Boyer, five of which were also brought against Lone Star. [450]*450The five charges against plaintiffs were (1) failure to include an alarm agent’s registration number on two separate contracts (§§ 7599.61, subd. (b), 7599.54, subd. (a)), (2) failure to verify an alarm agent’s registration (§§ 7599.61, subd. (b), 7598.16, 7599.39; Cal. Code Regs., tit. 16, § 625.1), (3) aiding and abetting an unregistered alarm agent (§§ 7599.61, subd. (b), 7590.2, 7592.2, 7599.46, 7599.47, 7598.51; Cal. Code Regs., tit. 16, § 607.4, subds. (a) & (b)(1), (2)), (4) making untrue or misleading statements (§§ 7599.61, subd. (b), 7592.2, 7599.55), and (5) engaging in dishonest or fraudulent acts (§§ 7592.2, 7599.61, subd. (j).) The sixth charge, filed against Boyer only, alleged he had not paid the costs ($2,570) imposed in the 2006 administrative proceeding.

At the administrative hearing, the Bureau based its findings of fact primarily on the testimony of two witnesses, business owner Heide Dewitt and residential customer Rhonda Fuertado.

1. Dewitt’s Testimony

Dewitt testified that Lone Star’s unlicensed agent, Roy Steven Ashcraft, visited her business in early 2008 and presented her with a business card bearing his name, the title “Field Supervisor,” Lone Star’s logo, and Lone Star’s license number. Dewitt further testified that Ashcraft (1) reviewed paperwork related to alarm company services being provided for Dewitt’s business by another security company, Protection One; (2) informed Dewitt that she did not have an existing contract with Protection One; (3) gave her a blank contract for Lone Star’s services, which Dewitt did not sign; and (4) took a $70 check from Dewitt, agreeing that he would not cash the check unless Dewitt verified that she was not contractually bound to Protection One. The next day Dewitt called Ashcraft and informed him that she was bound by the contract with Protection One until September 2008 and that she was therefore unable to enter into a contract with Lone Star. Dewitt sent a followup letter verifying her conversation with Ashcraft as well as her request to cancel the agreement with Lone Star based on the binding contract she had with Protection One.

Boyer, acting on behalf of Lone Star, responded to Dewitt by fax with a counter proposal that Lone Star commence service in August 2008. Dewitt responded to Boyer in writing, reiterated her desire to cancel the agreement with Lone Star, and demanded that Boyer return her $70 check. Plaintiffs failed to return Dewitt’s deposit, maintaining that they had a binding contract with Dewitt. After repeatedly contacting plaintiffs in writing and by telephone to demand the return of her deposit check, Dewitt filed a complaint with the Bureau. Boyer returned Dewitt’s check just prior to the Bureau hearing and called Dewitt several times asking her to withdraw her complaint.

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Bluebook (online)
209 Cal. App. 4th 445, 147 Cal. Rptr. 3d 173, 2012 Cal. App. LEXIS 987, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lone-star-security-video-inc-v-bureau-of-security-investigative-calctapp-2012.