Piano v. ST., CALIF. EX REL. NEW MOTOR VEHICLE BD

103 Cal. App. 3d 412, 163 Cal. Rptr. 41
CourtCalifornia Court of Appeal
DecidedMarch 13, 1980
Docket56387
StatusPublished

This text of 103 Cal. App. 3d 412 (Piano v. ST., CALIF. EX REL. NEW MOTOR VEHICLE BD) 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
Piano v. ST., CALIF. EX REL. NEW MOTOR VEHICLE BD, 103 Cal. App. 3d 412, 163 Cal. Rptr. 41 (Cal. Ct. App. 1980).

Opinion

103 Cal.App.3d 412 (1980)
163 Cal. Rptr. 41

ALBERT PIANO, Plaintiff and Appellant,
v.
THE STATE OF CALIFORNIA ex rel. NEW MOTOR VEHICLE BOARD, Defendant and Respondent; NISSAN MOTOR CORPORATION, Real Party in Interest and Respondent.

Docket No. 56387.

Court of Appeals of California, Second District, Division Three.

March 13, 1980.

*414 COUNSEL

Sidney I. Pilot, A. Albert Spar and Dean O. Isaacs for Plaintiff and Appellant.

George Deukmejian, Attorney General, and Richard M. Radosh, Deputy Attorney General, for Defendant and Respondent.

O'Melveny & Myers, Donald M. Wessling and Gregory R. Oxford for Real Party in Interest and Respondent.

OPINION

KLEIN, P.J.

Appellant Albert Piano, doing business as Al Piano Datsun (Piano), appeals from a superior court judgment entered January 12, 1979, denying petitions for writs of mandate (Code Civ. Proc., § 1085)[1] and administrative mandamus (Code Civ. Proc., § 1094.5).[2]

Piano prayed for a writ of mandate in the superior court ordering respondent State of California, by and through the New Motor Vehicle Board (Board) to set aside its decision on Piano's protest, and enter an order not permitting real party in interest Nissan Motor Corporation in U.S.A. (Nissan) to establish a dealership. Piano also requested the court to mandate the Board to promulgate meaningful standards relating *415 to "good cause" under Vehicle Code section 3063[3] through rules and regulations.

BACKGROUND INFORMATION

On November 30, 1977, Nissan gave notice pursuant to section 3062[4] of its intention to establish another Datsun motor vehicle dealership in Simi Valley. On December 12, 1977, Piano, who had the Piano Datsun dealership in Thousand Oaks, some 12 miles distant, filed a protest with the Board.

A hearing was held between March 21 and March 31, 1978, pursuant to section 3066[5] before a hearing officer, during which 15 witnesses *416 testified and 83 exhibits were introduced. The hearing officer's proposed decision recommended that the protest be overruled. On June 30, 1978, the Board unanimously adopted the proposed decision.

In determining the issue of good cause in all 5 categories as required by section 3063, the hearing officer made 46 findings of fact, unchallenged on this appeal.

A trial was had in the superior court pursuant to the petitions for writs on November 17, 1978, wherein the protest hearing transcript and exhibits were admitted in evidence and oral arguments were heard. The trial judge denied the writ of mandate on the ground that the issuance of regulations under sections 3050, subdivision (a),[6] 3062 and/or 3063 was not a ministerial act which the law specifically enjoined, and denied the writ of administrative mandamus (review) on the grounds that there was substantial evidence to support the findings of the Board, that the Board's decision was supported by the findings, and that Piano's claims as to jurisdiction and abuse of discretion were without merit as a matter of law.

CONTENTIONS

Piano contends that he was denied basic fairness and due process because the five specific factors set out in section 3063 did not provide adequate standards to guide the Board in determining whether "good cause" existed, and that judicial review is therefore impossible. He also avers that mandate is the proper remedy to compel the Board to promulgate regulations clarifying section 3063.

We disagree with Piano's contentions and affirm the ruling of the superior court for the reasons hereinafter discussed.

STATUTORY SCHEME

Pursuant to the statutory scheme, the statewide Board is empowered to hear and consider protests by existing motor vehicle dealers against the franchising of additional dealerships of the "same line-make."

*417 An automobile manufacturer, before establishing a new dealership, is required to serve written notice on each of its existing dealers located within a proscribed radius of the proposed dealership. Within 15 days, any such dealer may file a "protest," the automatic effect of which is to enjoin the manufacturer from franchising the new dealership until a hearing is held.

If the protesting dealer proves at the hearing that there is "good cause for not permitting" the new dealership, the Board may prohibit it permanently. "Good cause" is defined in section 3063.

The Board customarily appoints a hearing officer to hear the evidence and prepare a proposed decision. The Board's decision must be in writing and contain findings of fact and a determination of the issues presented. Either party may seek judicial review.

It would appear that by the adoption of the above set forth statutory scheme the Legislature intended that the Board balance the dealers' interest in maintaining viable businesses, the manufacturers' interest in promoting sales, and the public's interest in adequate competition and convenient service.

DISCUSSION

(1) In applying the statutory scheme to Piano, we reject his first contention in that we determine the standards set forth in section 3063 are adequate to guide those persons to be governed thereby, whether such persons be litigants, hearing officers, the Board, or judges.

California law has upheld standards far less specific than the section 3063 "good cause" factors. For example, Unemployment Insurance Code section 1256, providing that a person is disqualified for benefits if the director finds he left his most recent work "voluntarily without good cause" (italics added), has been upheld. Sanchez v. Unemployment Ins. Appeals Bd. (1977) 20 Cal.3d 55, 69-70 [141 Cal. Rptr. 146, 569 P.2d 740]; Syrek v. California Unemployment Ins. Bd. (1960) 54 Cal.2d 519, 529-532 [7 Cal. Rptr. 97, 354 P.2d 625]; Rabago v. Unemployment Insurance Appeals Board (1978) 84 Cal. App.3d 200, 208-209 [148 Cal. Rptr. 499]. "Good cause" was defined by the California Supreme Court as "`an adequate cause, a cause that comports with the purposes of the Unemployment Insurance Code and with other laws....'" *418 (Syrek v. California Unemployment Insurance Board, supra, 54 Cal.2d, at p. 529.)

In City & County of S.F. v. Superior Court (1959) 53 Cal.2d 236 [1 Cal. Rptr. 158, 347 P.2d 294], the Supreme Court found "completely devoid of merit" a constitutional challenge to agency denial of a building permit under an overall standard of "`promotion of public health, safety, comfort, convenience and general welfare,' in the light of existing and effective city ordinances prescribing express or minimum standards." (Id., at pp. 249-250.)

In Jenner v. City Council (1958) 164 Cal. App.2d 490, 498 [331 P.2d 176], a statute providing that "any land which in the judgment of the legislative body will not be benefited shall not be included in [a special parking] district," was found to provide adequate standards.

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Related

New Motor Vehicle Bd. of Cal. v. Orrin W. Fox Co.
439 U.S. 96 (Supreme Court, 1978)
Drummey v. State Board of Funeral Directors & Embalmers
87 P.2d 848 (California Supreme Court, 1939)
Sanchez v. Unemployment Insurance Appeals Board
569 P.2d 740 (California Supreme Court, 1977)
Rabago v. Unemployment Insurance Appeals Board
84 Cal. App. 3d 200 (California Court of Appeal, 1978)
Syrek v. California Unemployment Insurance Appeals Board
354 P.2d 625 (California Supreme Court, 1960)
Jenner v. City Council
331 P.2d 176 (California Court of Appeal, 1958)
City & County of San Francisco v. Superior Court
347 P.2d 294 (California Supreme Court, 1959)
Valley Motor Lines, Inc. v. Riley
70 P.2d 672 (California Court of Appeal, 1937)
Piano v. State ex rel. New Motor Vehicle Board
103 Cal. App. 3d 412 (California Court of Appeal, 1980)

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Bluebook (online)
103 Cal. App. 3d 412, 163 Cal. Rptr. 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/piano-v-st-calif-ex-rel-new-motor-vehicle-bd-calctapp-1980.