People v. James

122 Cal. App. 3d 25, 177 Cal. Rptr. 110, 1981 Cal. App. LEXIS 2001
CourtCalifornia Court of Appeal
DecidedMay 26, 1981
DocketCiv. 23650
StatusPublished
Cited by13 cases

This text of 122 Cal. App. 3d 25 (People v. James) 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
People v. James, 122 Cal. App. 3d 25, 177 Cal. Rptr. 110, 1981 Cal. App. LEXIS 2001 (Cal. Ct. App. 1981).

Opinion

Opinion

TAMURA, J.

This is an appeal from an order granting a preliminary

injunction in a suit brought by the People charging defendants with unfair business practices under Business and Professions Code sections 17200 et seq. 1 In reviewing an order granting a preliminary injunction, we must view the facts favorably to the prevailing party, *29 resolving all conflicts in its favor and drawing all inferences which can reasonably be made in support of the trial court’s order. (E.g., North Carolina Dairy Foundation, Inc. v. Foremost-McKesson, Inc. (1979) 92 Cal.App.3d 98, 104 [154 Cal.Rptr. 794]; People v. Columbia Research C o rp.

Defendant Eldon Bagstad (Bagstad) is the proprietor of El Don Liquor which is located at a busy corner on the Pacifip Coast Highway just across the street from the Huntington Beach pier and beach. Bagstad owns or leases spaces for 8 to 10 vehicles on the side and to the rear of his store for customer parking. When this suit arose, the wall of the liquor store facing the side lot was posted with a four-by-six-foot sign stating “Customer Parking for El Don Liquor only. Violators will be towed away. C.V.C. 22658A H.B.P.D. 536-5311.” The rear lot was posted with two much smaller signs stating “El Don parking only. Unauthorized vehicles will be towed away at vehicle owner’s expense. C.V.C. 22658a H.B.P.D. 536-5311 Ace Towing 842-7402.” 2

*30 Bagstad apparently had experienced problems with congestion of his parking facilities for some time. According to the declaration of the owner of an automotive repair company, Bagstad approached him in 1975, and again in 1978, concerning towing vehicles from the El Don parking lot. Each time, Bagstad proposed that the declarant pay him a portion of the charges which he would collect from persons whose vehicles were thus towed. Declarant refused Bagstad’s proposals.

Defendant Charles James (James) is the proprietor of Ace Tow Service (Ace). He operates tow trucks and a storage garage. At least part of his business is what is known as “private property impounding,” the removal and storage of vehicles parked on private property authorized by Vehicle Code section 22658. (See fn. 2, ante.) Vehicle Code section 22851 in turn grants keepers of impound garages liens for towage and storage costs on impounded vehicles which have been removed to their garages. 3

Sometime before December 1979, James and Bagstad entered into a contract under which Ace would tow vehicles away from the El Don *31 parking lot. Under the statute, the city police must be notified before an impound is to take place. (See fn. 2, ante.) In Huntington Beach, this notification is accomplished by phoning the police department, identifying the tow service, the vehicle to be impounded, and the property from which the vehicle is being removed, and having a private property impound number (PPI) assigned to the transaction. PPI records of the Huntington Beach Police Department show that during the two-month period from December 22, 1979, through February 21, 1980, the department was notified of 496 PPI’s. In 343 of these, Ace was the towing agency and of the 343 Ace tows, 291 were from the El Don Liquor parking lot.

In March 1980, the People filed the instant action for an injunction and civil penalties alleging that James and Bagstad were engaged in unlawful business practices in violation of section 17200 et seq. The complaint alleged that the warning signs posted by Bagstad on the El Don lot were not in plain view of all who parked in the lot and that the signs were ambiguous in that they did not specify how long persons who intended to or had patronized El Don Liquor might leave their cars in the lot. The People also alleged that James had engaged in unlawful practices in hoisting and towing cars from the lot, including charging unconscionable fees, intimidating vehicle owners by threatening them with bodily harm, damaging vehicles, failing to safeguard personal property left in vehicles, charging “let-down fees” before releasing vehicles which had been hoisted for towing but not yet removed from the lot, and making false representations concerning the existence of liens and other rights in exacting charges for releases of such hoisted vehicles, all in violation of Civil Code section 1770, subdivision (n). 4 Finally, the People alleged that James was paying Bagstad a “kickback” fee for authorizing removal of cars from the El Don lot.

The People sought to enjoin Bagstad from authorizing impounds unless his lot were posted with clearly visible signs stating a time limit for customer parking, and from receiving kickbacks for authorizing impounds. The complaint also prayed that James be prevented from refusing to surrender a hoisted car to its owner or operator unless a *32 “let-down fee” were paid, from making false representations concerning liens and other rights, and from forcing vehicle owners to waive claims for damages to their vehicles before releasing their vehicles.

All parties stipulated to a temporary restraining order and a show cause hearing was held on the People’s application for a preliminary injunction. At the hearing, the People introduced approximately 45 declarations of persons whose vehicles had been hoisted or towed from the El Don parking lot between December 22, 1979, and February 21, 1980. The declarations illustrated a pattern of business practices followed by James and Bagstad in authorizing and completing vehicle impounds. An Ace tow truck was stationed on the street near the El Don lot much of the time. As soon as a person who had parked a vehicle on the El Don lot left the premises, the tow truck would come onto the lot and immediately hoist the vehicle for towing. The tow truck driver would then wait for a short time (called a “courtesy” period) to see if the driver were coming right back. If the driver came back within a few minutes, he or she was charged a “let-down” fee (usually $40) before the car was lowered to the ground. The fee was demanded in cash, and a “standby” fee of $1 per minute was charged for any extra time it took for the driver to obtain the cash to pay the fee. If the driver failed to return within the “courtesy” period, or was unable to pay the “let-down fee,” the vehicle was towed to James’ impound garage. James’ tow truck operators often intimidated and threatened persons who were reluctant to pay the “let-down fee,” and asserted lien and other rights to justify their refusal to lower vehicles without payment.

The business practices challenged by the People were not confined to activities on the El Don premises. The declarations revealed that Ace employees also engaged in intimidation and misrepresentation when declarants went to the impound garage to retrieve their vehicles.

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Bluebook (online)
122 Cal. App. 3d 25, 177 Cal. Rptr. 110, 1981 Cal. App. LEXIS 2001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-james-calctapp-1981.