Source: https://scocal.stanford.edu/opinion/bing-v-city-duarte-27289
Timestamp: 2020-08-13 05:57:42
Document Index: 723435276

Matched Legal Cases: ['§ 5000', '§ 5372', '§ 5374', '§ 1', '§ 1', '§ 10000', '§ 10402', '§ 5301', '§ 5302', '§ 5302', '§ 5303', '§ 5231', '§ 10000']

Bing v. City of Duarte - 65 Cal.2d 627 - Mon, 01/30/1967 | California Supreme Court Resources
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Citation 65 Cal.2d 627
Bing v. City of Duarte , 65 Cal.2d 627
Defendants City of Duarte, its treasurer and five members of its city council (hereinafter collectively called the city), appeal from a judgment against them and in favor of plaintiff in an action to determine the validity and enforceability of 57 bonds issued by the city under the Improvement Act of 1911. (Sts. & Hy. Code, div. 7; § 5000 et seq.) fn. 1 The [65 Cal.2d 629] Director of Public Works and the Controller of the State of California (hereinafter together called the state) are also defendants. Plaintiff and the state are respondents on this appeal. [1a] As hereinafter appears, we have concluded that the trial court erred in its conclusion that the 57 bonds are not valid and enforceable because issued against state-owned property, and that the judgment must accordingly be reversed.
On October 17, 1961, the assessment roll and diagram and the warrant were recorded in the office of the County [65 Cal.2d 630] Recorder of Los Angeles County. (§ 5372.) On the same date a warrant was issued by the city empowering plaintiff, as assignee of the contractor, to demand and receive the several assessments. (§ 5374.)
The trial court rendered judgment decreeing in pertinent part that the 57 bonds here in issue are invalid and unenforceable and do not constitute a valid lien upon the 57 parcels of property acquired by the state before October 17, 1961, and against which they had been levied; that the property in the district acquired by the state after October 17, 1961, for highway purposes is subject to the assessment; that neither the city nor the state is liable for payment of the 57 disputed bonds. The court ordered that the city reassess the property in the district excluding the 57 parcels owned by the state prior to October 17, 1961; that the reassessment include [65 Cal.2d 631] the amount of the 57 disputed bonds ($37,792.42) with interest to the date of recording of the reassessment; that after the reassessment "new, additional or different bonds to be issued to plaintiff [as] may be necessary or required, all in accordance with the provisions of Streets and Highways Code sections 5500 to 5511, inclusive."
[2] Despite the plain language of section 5248 declaring that all property described in the recorded notice of an award of contract shall bear its share of the assessment notwithstanding its later acquisition by the state, etc., the state, [65 Cal.2d 632] citing sections 19 fn. 3 and 700, subdivision (a), pleads that it is not a "person" within the terms of the section and that the recorded notice therefore provided no notice to the state. However, section 19 is modified by the declaration of section 5 that the definitions included in the Streets and Highways Code, including that of section 19, apply "Unless the particular provision or the context otherwise requires. ..." And section 700 is a section which enlarges the definition of "person" for the specialized questions of utilities in freeways. The statement in Berton v. All Persons (1917) 176 Cal. 610, 617 [170 P. 151], that "A sovereign state is not a person," was made in the course of holding that (p. 617) "A reading of the McEnerney Act fn. 4 discloses not only a failure by the state to declare itself bound by decrees so obtained, but makes manifest that the statute was dealing only with the private rights of private persons." (See also Kearney Investment Co. v. Golden Gate F. Co. (1926) 198 Cal. 560, 563 [246 P. 322].) A reading of the statute at issue in the case now before us discloses on the contrary an intent that the state be bound. [3] And as observed in Hoyt v. Board of Civil Service Comrs. (1942) 21 Cal.2d 399, 404-405 [132 P.2d 804], "The United States Supreme Court said in a recent case, commenting upon the suggestion that the word 'person' could never include a governmental body, '... "there is no hard and fast rule of exclusion. The purpose, subject matter, the context, the legislative history, and the executive interpretation of the statute are aids to construction which may indicate an intent, by use of the term, to bring state or nation within the scope of the law." ' [Citations.]"
Moreover, the state does not appear to deny that it had actual notice that the 57 lots it acquired fell within the boundaries of the proposed assessment district. Rather, it suggests that the purpose of the Legislature in amending section 5248 to provide for recordation of the notice of award of contract was to give formal, constructive notice to "all persons" that the proposed assessments to be levied against all private property within the district would be increased if any of the private property was acquired by a public agency after the original notice of intention but prior to confirmation [65 Cal.2d 633] of the assessment and recordation thereof pursuant to section 5372; that such formal, constructive notice was necessary to overcome the effect of this court's decision in People v. Peninsula Title Guar. Co. (1956) 47 Cal.2d 29 [301 P.2d 1]. The state's argument on the point is ingenious but unconvincing. In the first place, when provision for recording the notice of award of contract was first added to section 5248 in 1957 (Stats. 1957, ch. 523, p. 1565, § 1) the year following Peninsula Title, the language with which we are here concerned read as follows: "From the time of the recording ... all property within the boundaries of the proposed assessment district shall be assessed ... notwithstanding the subsequent acquisition of any such property by a public agency." (Italics added.) [4] The further provision that the recording "shall constitute notice to all persons" was not added until 1959 (Stats. 1959, ch. 905, p. 2941, § 1), and nothing therein appears intended to weaken the positive declaration that recording of the notice of award fixes the date as of which all property in the district shall be subject to its beneficial share of the assessment despite its acquisition by one of the public agencies listed by the 1959 amendment. (See ante, p. 631, fn. 2.)
Moreover, the Peninsula Title case dealt with the Municipal Improvement Act of 1913 (Sts. & Hy. Code, div. 12, § 10000 et seq.), and not the 1911 Act with which we are here concerned. The question there presented was whether private property owners should be required to pay out of a condemnation award the amount of an assessment levied and recorded under the 1913 Act after the state had taken possession of the property and commenced construction of a highway overpass thereon but before the condemnation award had been made. The assessment proceedings had been initiated some 15 months before summons issued in the eminent domain proceeding and some 17 months before the state had taken possession. In holding that the property owners were entitled to the full condemnation award without deduction on account of the assessment lien which attached after possession of the property had been taken from them, note is made in the opinion of the fact that under Code of Civil Procedure section 1249 the value of the property was fixed as of the date of issuance of summons (p. 31 of 47 Cal.2d), as of which date and the later taking of possession by the state the benefit of the improvement had not yet accrued to the property. (P. 32.) [65 Cal.2d 634] This was true because under the 1913 Act the award of the contract and the work of improvement take place after the assessment lien attaches upon recordation of the assessment. (See §§ 10402.5, formerly 10402; 10428; 10500-10510.)
This conclusion is fortified if it is conjectured that the state might have acquired a full one-half of the property in the [65 Cal.2d 635] district, following recordation of the notice of award of contract. Or three-quarters of it, or perhaps 90 percent. If contractors and bond purchasers are faced with the prospect that possible acquisition of land by the state for future freeways, after such recordation and even after the work of improvement has started or has been substantially completed, could remove from the assessment burden a substantial portion of the area within the proposed improvement district, leaving them to look for payment solely to whatever privately owned land may remain, where could contractors be found who would be willing to gamble against such a contingency and how could local agencies ever successfully construct and finance improvements under the 1911 Act? It appears that such a situation might also completely wipe out the remaining property owners in the district if the burden of the entire assessment were to be thrown upon them. We are convinced that no such result was intended by the Legislature.
Further support for this view is found in the provisions of sections 5301- 5303. fn. 6 Those sections in pertinent part (1) [65 Cal.2d 636] permit (§ 5301) the legislative body in its resolution of intention to omit from the assessment any land lying within the proposed district which then belongs to certain public entities, including the state, and which then "is in use in the performance of any public function"; (2) direct (§ 5302) that if any such land is so omitted then the remaining land in the district shall bear the entire expense of the improvement; (3) specify (§ 5302.5), that if the resolution of intention includes the publicly owned and used land in the assessment or fails to mention the subject, then such land, except that owned by the United States or by the state or any department thereof, shall bear its share of the assessment; and (4) declare (§ 5303) that if the resolution of intention includes such land owned by the United States or by the state or fails to mention it, then the city shall be liable for the assessment against such land, payable out of the city's general fund unless the resolution of intention designates another fund.
[6] Thus, although sections 5301-5303 do not apply in this case because the 57 lots acquired by the state after October 25, 1960, obviously were neither state-owned nor "in use in the performance of any public function" at the time (June 13, 1960) the legislative body adopted its resolution of intention--which is the step at which section 5301 permits it to omit from the assessment publicly owned and used land which is included in the district--nevertheless the express and detailed provisions of those sections authorizing omission from the assessment of such land at that early step in the proceedings and the absence of authority for later removing it, indicates the intent of the Legislature that publicly owned land may be so omitted only by provision made in, and at the time of adoption of, the resolution of intention. The state's suggestion that on each occasion that it acquired a parcel of property following adoption of the resolution of intention, the city should have amended the resolution and excluded the state-owned property from the boundaries of the district is [65 Cal.2d 637] equally lacking in merit. The state acquired none of its property until after the award of contract, and the exclusion of such property would therefore have required the consent, not here given, of the contractor or the bidder to whom the contract was awarded. (§ 5231.) fn. 7 It follows that sections 5301-5303 provide no support for the state's contention that its acquisition of the 57 parcels for future freeway purposes served to omit or remove those parcels from the assessment here involved. This conclusion renders it unnecessary to reach the state's further contention that from the date it acquires property for future highways such property is "in use in the performance of a public function" within the meaning of sections 5301-5303. However, as already noted, 55 out of the 57 parcels here involved were developed with single-family residences, of which 45 were occupied at the time of trial and six had been removed. Additionally, the County of Los Angeles as amicus curiae points out that at least one of its own assessment proceedings involves an assessment on parcels which have been sold by the state as being excess. In order to avoid repetitious litigation on the issue of exactly when property acquired by a public agency has been put "to use in the performance of any public function" within the meaning of sections 5301-5303, the matter is commended to the attention of the Legislature.
In view of the conclusion that the 57 disputed bonds constitute valid liens against the 57 parcels of state-owned property, other contentions of the parties need not be discussed. [65 Cal.2d 638]
­FN 1. Unless otherwise stated, all section references are to Streets and Highways Code sections as they read at the times here involved.
­FN 2. Section 5248: "Notice of the award of the contract shall be published by the clerk.
­FN 3. Section 19: " 'Person' means any person, firm, partnership, association, corporation, organization or business trust."
­FN 4. Drafted to restore records of title destroyed by public disaster, as in the San Francisco earthquake and fire, and to quiet title of the plaintiff after such restoration. (Pp. 615- 616 of 176 Cal.)
­FN 5. As the state points out, the 1913 Act (§ 10000 et seq.) does incorporate certain of the provisions of the 1911 Act. Thus section 10102 authorizes acquisition or installation of any or all of the works and improvements mentioned in the 1911 Act. Section 10103 makes applicable the 1911 Act provisions for work and assessments "by a city within a county or by a county within a city." Section 10108 permits formation of a maintenance district pursuant to certain specified provisions of the 1911 Act. Section 10205 incorporates by reference the provisions of the 1911 Act relating to contributions to the improvement work, by a public agency accepting it as a project.
­FN 6. Section 5301: "If any lot or parcel of land belonging to the United States, or to the State, or to any county, city [etc.] is in use in the performance of any public function, and is included within the district to be assessed ..., the legislative body may, in the resolution of intention, declare that such lots or parcels of land, or any of them, shall be omitted from the assessment. ..." (Italics added.)
­FN 7. The city also appears correct in asserting that the amendatory procedure suggested by the state would be a practical impossibility. Under section 5232 a public hearing preceded by a published 10-day notice is called for each time the city attempts to amend the resolution of intention. During that time the state could continue to acquire property, thereby requiring the city to start a new amendatory proceeding. The result would be that the state could delay indefinitely the completion of the assessment district proceedings.
Mon, 01/30/1967 65 Cal.2d 627 Review - Criminal Appeal Opinion issued
1 ANNA H. BING, Plaintiff and Respondent, v. CITY OF DUARTE et al., Defendants and Appellants; JOHN ERRECA, as Director of Public Works, etc., et al. (Defendants and Respondents)
2 CITY OF DUARTE et al., Defendants and Appellants; JOHN ERRECA, as Director of Public Works, etc., et al. (Defendants and Respondents)
Jan 30 1967 Opinion: Reversed
SCOCAL, Bing v. City of Duarte , 65 Cal.2d 627 available at: (https://scocal.stanford.edu/opinion/bing-v-city-duarte-27289) (last visited Wednesday August 12, 2020).