Opinion ID: 1158402
Heading Depth: 2
Heading Rank: 2

Heading: Civil action against Morse

Text: After unsuccessfully requesting that Morse stop mailing advertisements unlawful under section 17537.6, the California Attorney General and the Alameda County District Attorney filed an action against Morse in August 1991 for an injunction, civil penalties, restitution, and other relief. Morse argued that the restrictions of section 17537.6 did not apply to him and were unconstitutional. The superior court issued a preliminary injunction ordering Morse to cease violating section 17537.6. Morse appealed. In November 1992, the superior court granted the plaintiffs' motion for summary adjudication and permanently enjoined Morse from violating section 17537.6 by mailing unlawful homestead-service advertisements to the public. The superior court further ordered Morse to pay $400,000 in civil penalties (one-half payable to the Attorney General and one-half payable to the Alameda County Treasurer) and also to pay $400,000 in cy pres restitution to the Consumer Protection Prosecution Trust Fund. Morse also appealed from this judgment. The Court of Appeal consolidated Morse's two appeals, affirmed the superior court's judgment, and dismissed the appeal from the order granting the preliminary injunction because the superior court's judgment had mooted that appeal. ( People v. Morse (1993) 21 Cal. App.4th 259 [25 Cal. Rptr.2d 816].) Briefly stated, the Court of Appeal held that: (1) Section 17537.6 does not violate Morse's right to free speech under the First Amendment to the United States Constitution because Morse's advertisements were ... deceptive and misleading in a number of ways, and therefore are not entitled to First Amendment protection. ( People v. Morse, supra, 21 Cal. App.4th at p. 266.) (2) Section 17537.6 is not unconstitutionally vague. ( People v. Morse, supra, 21 Cal. App.4th at pp. 269-271.) (3) Section 17537.6 does not violate Morse's right to due process (U.S. Const., 14th Amend.) by creating an evidentiary presumption against him. ( People v. Morse, supra, 21 Cal. App.4th at p. 271.) (4) The trial court's assessment of civil penalties and order for restitution were proper. ( People v. Morse, supra, 21 Cal. App.4th at pp. 271-275.) Morse unsuccessfully petitioned this court for review of the Court of Appeal decision. ( People v. Morse, supra, 21 Cal. App.4th 259, review den. Mar. 17, 1994 (S037673).) The United States Supreme Court denied his petition for a writ of certiorari. ( Morse v. California (1994) ___ U.S. ___ [130 L.Ed.2d 36, 115 S.Ct. 83].) While his consolidated appeals in the civil enforcement action were pending, Morse filed a purported taxpayer's action under Code of Civil Procedure section 526a, challenging the constitutionality of section 17537.6 and seeking to enjoin the California Attorney General and the Alameda County District Attorney from enforcing section 17537.6. The superior court denied Morse's request for a preliminary injunction, explaining that the court already had twice rejected his arguments in the enforcement action, and awarded $3,900 in sanctions against Morse. He appealed. In an unpublished decision, the Court of Appeal affirmed the order denying an injunction and imposing sanctions. The Court of Appeal also found Morse's appeal to be frivolous and imposed additional sanctions of $7,500. On July 26, 1994, the parties in People v. Morse stipulated to a reduction of the judgment, approved by the Alameda County Superior Court, which declared that the judgment against Morse would be fully satisfied if Morse: (1) paid $170,000 in civil penalties (one-half payable to the Attorney General, one-half payable to the Alameda County treasurer); and (2) paid $170,000 in cy pres restitution to the Consumer Protection Prosecution Trust Fund. The modification required that Morse pay $70,000 of the $340,000 modified judgment on September 1, 1994, with the balance of $270,000 due in monthly installments of $2,500, commencing October 1, 1994. The modification also specified that, if Morse fails to make any required payment within 120 days of its due date, the full amount of $800,000 in civil penalties and cy pres restitution, plus interest and less payments made, shall be immediately due and payable. We take judicial notice of the parties' agreement. (Evid. Code, §§ 452, subd. (d), 459.) [2]