McDonough v. Garrison

156 P.2d 983, 68 Cal. App. 2d 318, 1945 Cal. App. LEXIS 769
CourtCalifornia Court of Appeal
DecidedMarch 12, 1945
DocketCiv. No. 12638; Civ. No. 12639
StatusPublished
Cited by30 cases

This text of 156 P.2d 983 (McDonough v. Garrison) 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
McDonough v. Garrison, 156 P.2d 983, 68 Cal. App. 2d 318, 1945 Cal. App. LEXIS 769 (Cal. Ct. App. 1945).

Opinions

PETERS, P. J.

On October 23, 1942, Peter and Thomas McDonough filed in the superior court petitions for writs of mandate to compel the state Insurance Commissioner to issue to them licenses as bail permittees. These petitions prayed for a trial de novo before a jury of the issue as to whether petitioners possessed the statutory qualifications required of all such permittees. The petitions allege that in August, 1942, petitioners filed with the commissioner, in proper form, applications for bail permittee’s licenses; that on October 16, 1942, the petitions were denied by the commissioner without hearings; that petitioners are qualified for such licenses and are men of good character and reputation. Over the frequently expressed objections of the commissioner that the trial court had no jurisdiction to grant a trial de novo before a jury of the issue set forth in the petitions, the trial court submitted such issue to a jury. The commissioner declined to participate in the jury trial, with the result that no evidence was offered by him in opposition to that produced by the petitioners. The evidence being uncontradicted, the jury rendered special verdicts on all the issues submitted to it favorable to petitioners. Judgments were entered on the verdicts that petitioners are entitled to peremptory writs of mandate compelling the commissioner to issue to petitioners licenses as bail permittees. From these judgments the commissioner appeals.

In 1937 the Legislature of this state, in the exercise of its police power, determined that, for the reasonable protection of the public, bail bond brokers must be licensed by the Insurance Commissioner, and that no such license should be issued unless the commissioner finds that the applicant is of good moral character and a fit and proper person to engage in the bail bond business. (Stats. 1937, p. 1797, chap. 653; p. 1800, chap. 654; Ins. Code, §§ 1800-1821.) Since 1937 Peter and Thomas McDonough have attempted, unsuccessfully, to convince the various Insurance Commissioners that [321]*321they possess the requisite qualifications. On two occasions, after lengthy hearings, and after giving the applicants full opportunity to present all available relevant evidence on the issue, the commissioner has determined that the two petitioners are not fit and proper persons to engage in the bail bond business. The petitioners have challenged the validity of the statute and the determinations of the commissioner, in various ways, but every appellate court to which the problem has been presented has held that the statute was valid, and that the commissioner acted properly, and well within his powers, in denying the applications. (See McDonough v. Goodcell, 13 Cal.2d 741 [91 P.2d 1035,123 A.L.R. 1205]; In re McDonough, 27 Cal.App.2d 155 [80 P.2d 485] ; Newport v. Caminetti, 56 Cal.App.2d 557 [132 P.2d 897].)

The second of the applications referred to above was denied by the commissioner, after a full hearing, in May, 1941. The McDonoughs did not seek to have these denials reviewed by the courts in the manner provided in the statute, but in August, 1942, filed new applications with the commissioner. These applications are substantially identical with the two prior ones that had been denied after full hearings. The commissioner, acting pursuant to the express provisions of sections 1733 and 1821 of the Insurance Code, denied the applications without a hearing. Section 1733 provides that: “The commissioner may, with or without hearing, suspend, revoke, or decline to grant or renew the license of an insurance agent, broker or solicitor, when any of the following facts exist in respect to the applicant or licensee: . . .

“(e) Suspension, revocation or refusal to grant or renew a license previously issued or applied for under this code when such action by the commissioner occurred within five years before the application and was based on reasonable notice to and hearing of the applicant or licensee. ’ ’

Section 1821 of the Insurance Code, so far as pertinent here, provides: “The provisions of sections 1730 to 1736, inclusive, are applicable to persons licensed under this chapter [bail licensees] and the words ‘insurance agent’ used in those sections include persons licensed under this chapter. ’ ’

The commissioner denied the applications without a hearing on October 16, 1942. The order of denial sets forth in detail the facts and circumstances relating to the two prior applications which were denied after full hearings, and then states [322]*322that the refusal to grant the applications is based on two grounds: First, that the “records of the acts of the Insurance Commissioner and of the Courts of this State” show that on two previous occasions, after full hearings, petitioners were denied licenses for reasons which indicated a lack of integrity, in that the applicants were not of good moral character and not fit and proper persons to carry on the bail bond business; and secondly, the commissioner finds that petitioners are not fit and proper persons to hold licenses to carry on the bail bond business. On October 23, 1942, the petitions for writs of mandate were filed in the trial court. As already indicated, these petitions asked for a trial de novo and requested a jury trial of all issues of fact.

The demand for a trial de novo was based on petitioners’ interpretation of Laisne v. California St. Bd. of Optometry, 19 Cal.2d 831 [123 P.2d 457], which, at the time these proceedings were instituted was the latest decision dealing with the nature of mandamus proceedings brought to review adverse rulings of state-wide administrative boards and officers. The request for a jury trial was based on section 1090 of the Code of Civil Procedure, which confers discretionary power on trial courts in mandamus proceedings to try controverted fact questions before a jury.

In response to the alternative writs the commissioner appeared, demurred to the petitions and filed answers thereto, urging that the superior court was without jurisdiction to grant trials de novo, with or without a jury. The answers placed in issue the main allegations of the petitions and, as an affirmative defense, facts were pleaded to Show that sections 1733 and 1821 of the Insurance Code, above quoted, were applicable. The answers set forth that in 1938 similar applications were denied by the commissioner after a full hearing; that the propriety of this denial was tested and the commissioner’s findings approved in McDonough v. Goodcell, 13 Cal.2d 741 [91 P.2d 1035, 123 A.L.R 1205] ; that the second similar application was denied by the commissioner May 7, 1941, after a full hearing; that no attempt was made by petitioners to have the correctness of these last mentioned determinations passed upon within the three-month period expressly provided for in section 1734 of the Insurance Code.

The trial court overruled the demurrers, and granted petitioners’ request for a jury trial of all issues of fact. To com[323]

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Bluebook (online)
156 P.2d 983, 68 Cal. App. 2d 318, 1945 Cal. App. LEXIS 769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonough-v-garrison-calctapp-1945.