People v. Watson

15 Cal. App. 3d 28, 92 Cal. Rptr. 860, 1971 Cal. App. LEXIS 871
CourtCalifornia Court of Appeal
DecidedFebruary 4, 1971
DocketCrim. 16380
StatusPublished
Cited by27 cases

This text of 15 Cal. App. 3d 28 (People v. Watson) 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. Watson, 15 Cal. App. 3d 28, 92 Cal. Rptr. 860, 1971 Cal. App. LEXIS 871 (Cal. Ct. App. 1971).

Opinion

Opinion

FLEMING, J.

George D. Watson was indicted on two charges of conflict of interest (Gov. Code, §§ 1090, 1097), and one charge of bribery (Pen. Code, § 68). One conflict-of-interest charge was set aside before trial (Pen. Code, § 995), and a jury convicted Watson on the two other charges. The trial court ordered a new trial on the bribery conviction and then dismissed that charge in furtherance of justice. (Pen. Code, § 1385.) On the conviction for conflict of interest, the trial court fined Watson $1,000 (plus a $250 penalty assessment) and forever barred him from holding office in California. Watson appeals.

Government Code section 1090 prohibits a city officer from being financially interested in any contract made by a board of which he is a member. Watson was a member of the Board of Harbor Commissioners of the City of Los Angeles from 1961 to 1967. His conviction for conflict of interest was based on his vote as commissioner in 1966 to approve a lease of harbor facilities by the City of Los Angeles to an enterprise which he helped finance.

Watson’s briefs teem with contentions, but raise only a few basic questions: (1) whether Government Code section 1090 is constitutional; (2) whether the evidence supported the verdict; (3) whether the jury instructions were adequate; (4) whether the trial court’s attempts to cope with publicity surrounding the trial prevented a fair trial; (5 ) whether the conduct of counsel prevented a fair trial; and (6) whether the sentence was constitutional.

1. Government Code Section 1090

Government Code section 1090 provides in pertinent part: “Members of the Legislature, state, county, special district, judicial district, and city officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. . . .” Watson contends this section is vague, uncertain, and indefinite, since the word financially is nowhere defined.

*34 We disagree. The constitutional mandate of due process of law only requires that the words used in a statute be sufficiently well known to enable persons within its reach to understand and correctly apply them. (Lorenson v. Superior Court, 35 Cal.2d 49, 60 [216 P.2d 859].) The word financially was added to section 1090 in 1963. Prior to that time this court in People v. Darby, 114 Cal.App.2d 412, 427 [250 P.2d 743], found the wording of the section sufficiently definite and certain to enable any reasonably intelligent person to understand the meaning of interested. The effect of the addition of the word financially to the section has been to make it more precise than was formerly the case. It has now been made explicit that the prohibition in the section against conflict of interest is restricted to financial interest, and the possibility that the section might apply to some other type of interest has been eliminated. 1 Section 1090, therefore, is neither vague nor uncertain, nor indefinite, nor does a prosecution for violation of its terms deny an accused due process of law.

2. Sufficiency of the Evidence

The basic facts are undisputed. In 1964 Watson, a member of the Los Angeles Board of Harbor Commissioners, visited a floating restaurant in Vancouver, British Columbia, and concluded it would be desirable to have a similar restaurant in Los Angeles Harbor. In late 1964 or early 1965 he persuaded Leonard Udell of Vancouver, owner of an obsolete passenger liner named S.S. Princess Louise, to visit Los Angeles to explore the possibility of bringing the S.S. Princess Louise to Los Angeles Harbor and converting her into a floating restaurant. On that visit Watson introduced Udell to Charles G. Sutton, manager of a Los Angeles Harbor restaurant, and suggested the two of them might put something together. Later Watson went back to Vancouver to look at the S.S. Princess Louise, and Sutton made two trips to Vancouver for the same purpose. On one of these trips Sutton was accompanied by Lawrence Whiteneck, the chief harbor engineer for the Port of Los Angeles.

As early as March 1965 Sutton opened negotiations with the harbor department to obtain a 50-year lease on Berth 237 in Los Angeles Harbor as a location for the S.S. Princess Louise. He also sought to buy a *35 liquor license for use on a floating restaurant at that site. On 5 August 1965 Sutton obtained $10,400 from Engineering Associates, an engineering corporation originally owned by Watson but transferred to his wife in 1962 after his appointment to the Board of Harbor Commissioners. The day following Sutton’s receipt of this money he put it in an escrow for the purchase of a liquor license for use at Berth 237. In November 1965 Sutton formed the Princess Louise Corporation with himself as president and sole stockholder. He then instructed the escrow company to substitute the name of Princess Louise Corporation for his own as purchaser of the liquor license. In February and March 1966 Princess Louise Corporation made arrangements to acquire other stockholders, buy the S.S. Princess Louise, sell it to the California Small Business Development Company, and lease it back for use as a floating restaurant. Sutton then applied on behalf of Princess Louise Corporation to lease Berth 237 from the City of Los Angeles for occupancy and use by the S.S. Princess Louise as a floating restaurant, and in April 1966 the Board of Harbor Commissioners, including Watson, twice voted in favor of granting the lease. On the day after the second vote the lease was approved by the Los Angeles City Council, and on 10 June 1966 a 25-year lease of Berth 237 to Princess Louise Corporation was executed by the Board of Harbor Commissioners on behalf of the City of Los Angeles. Thereafter, the harbor department spent substantial sums of money to improve Berth 237, and in September 1966 the Princess Louise Corporation opened its bar and restaurant for business. On 30 November 1966 Princess Louise Corporation issued to Charles G. Sutton as payee two checks totalling $10,400, drawn against moneys derived from the operation of the bar and restaurant, and with these checks Sutton purchased a cashier’s check for $10,400 payable to Engineering Associates. He then delivered the cashier’s check to Watson, who endorsed it “Engineering Associates by G. D. Watson.”

The main issue in the case involves the interpretation of these facts. Watson contends the evidence shows only that Sutton owed $10,400 to Engineering Associates at the time Watson voted in favor of the lease, and he argues that the existence of a debt from Sutton to Engineering Associates did not make him financially interested in the lease of Berth 237 to Princess Louise Corporation. With this argument in mind we have examined the record to see whether it contains substantial evidence to support the jury’s conclusion that Watson was financially interested in the lease, for if it does, the verdict cannot be set aside on the ground of insufficiency of evidence. (People v. Newland,

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Bluebook (online)
15 Cal. App. 3d 28, 92 Cal. Rptr. 860, 1971 Cal. App. LEXIS 871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-watson-calctapp-1971.