Court Opinion

ID: 9633894
Source: CourtListenerOpinion
Date Created: 2023-08-22 12:05:49.365756+00
Date Added: 2024-06-11T09:21:13.033009
License: Public Domain

CLARK, J., Concurring.
Although Government Code section 815.61 by its terms would establish liability for violation of a mandatoiy duty,2 the liability imposed is subject to immunity provisions. Section 818.4 immunizes public entities from liability for injury caused by erroneous issuance of permits. The language of section 818.4, the legislative committee comment to the section, the purpose of the immunity as set forth in the California Law Revision Commission report, and the history of the Tort Claims Act of 1963 establish that the immunity applies to erroneous issuance of building permits whether the error is due to discretionary or to ministerial determinations. Accordingly, I cannot agree with the majority’s conclusion that permit immunity is applicable only to discretionary determinations.
However, I am satisfied that the entire Tort Claims Act of 1963 (§ 810 et seq.) is inapplicable to this action for breach of statutory duty imposed by Labor Code section 3800 because of the express terms of section 814.2 and its legislative comment. Rather, general principles of law are applicable, and plaintiff, being a member of the class protected by the statutory duty imposed by Labor Code section 3800, may maintain an action for its breach.
The importance of the issue decided by the majority calls for its discussion first. I assume in this part that the Tort Claims Act of 1963 is applicable. The applicability of the act will be discussed thereafter.
Mandatory-Discretionary
Section 815.6 provides; “Where a public entity is under a mandatory duty imposed by an enactment that is designed to protect against the risk *919of a particular kind of injury, the public entity is liable for an injury of that kind proximately caused by its failure to discharge the duty unless the public entity establishes that it exercised reasonable diligence to discharge the duty.”
The Law Revision Commission’s comment to the section reads: “This section declares the familiar rule, applicable to both public entities and private persons, that failure to comply with applicable statutory or regulatory standards is negligence unless reasonable diligence has been exercised in an effort to comply with those standards. Alarid v. Vanier, 50 Cal.2d 617, 327 P.2d 897 (1958) (setting forth general rule); Lehmann v. Los Angeles City Bd. of Educ., 154 Cal.App.2d 256, 316 P.2d 55 (1957) (applying rule to public entity). [If] In the sections that follow in this division, there are stated some immunities from this general rule of liability.”
The commission’s comment makes clear that section 815.6 makes a public entity liable under the negligence per se doctrine. Alarid reiterated the settled rule that a presumption of negligence arises from the violation of a statute, although that presumption may be overcome by evidence of justification or excuse. (50 Cal.2d at p. 621.)
The county’s issuance of a building permit without requiring compliance with Labor Code section 3800 establishes a presumption of negligence and public entity liability under section 815.6 unless the following sections provide for immunity.
One of the following sections, 818.4, provides: “A public entity is not liable for an injury caused by the issuance, denial, suspension or revocation of, or by the failure or refusal to issue, deny, suspend or revoke, any permit, license, certificate, approval order or similar authorization where the public entity or an employee of the public entity is authorized by enactment to determine whether or not such authorization should be issued, denied, suspended or revoked.” Section 821.2 establishes a similar immunity for public employees. It is undisputed that the county was authorized to determine whether the building permit should issue.
The legislative committee comment to section 818.4 provides: “This section, like Section 818.2, would be unnecessary but for a possible implication that might arise from Section 815.6. It recognizes another immunity that has been recognized by the New York courts in the *920absence of statute. Under the Federal Tort Claims Act, the immunity would be within the general discretionary immunity. Direct review of this type of action by public entities is usually available through writ proceedings or other proceedings to review administrative action or inaction. [1] Under this section, for example, the State is immune from liability if the State Division of Industrial Safety issues or fails to issue a safety order and a city is immune if it issues or refuses to issue a building permit even though negligence is involved in issuing or failing to issue the order or permit(Italics added.)
The permit and license immunity section, if applicable, is controlling against the mandatoiy duty liability of section 815.6. “[T]he Tort Claims Act makes it unquestionable that the immunity for licensing activities prevails over the liability established by section 815.6 for failure to discharge a mandatory duty (legislative committee comment to § 818.4; Van Alstyne, Cal. Government Tort Liability, supra, § 5.58, p. 165).” (O’Hagan v. Board of Zoning Adjustment (1974) 38 Cal.App.3d 722, 731 [113 Cal.Rptr.501].)
By its reference to section 815.6, the explanation as to the necessity for immunity, and the express disapproval of liability for negligence in issuing a building permit, the legislative committee comment to section 818.4 clarifies the extent of liability eliminated by that section. Immunity is not limited to acts within the discretion of the public entity but extends to the improper issuance of permits where the public entity was under a mandatory duty to deny the permit.
Section 815.6 only imposes liability for breach of a mandatoiy duty, and an immunity provision would not be necessary to protect the public entity from liability for the issuance of permits which it had discretion to deny; the duty would not be mandatoiy. The statement of immunity from negligence in issuance of building permit, in view of the earlier statement of necessity for the immunity provision, reflects the legislative intent that the immunity is not limited to discretionaiy determinations but extends as well to ministerial determinations involving the issuance of building permits.
Most important in this regard is that the legislative committee comment singles out building permits. To hold, as the majority does, that the building permit immunity is limited to mistake in the exercise of discretion would mean that section 818.4 has little or no application to *921the issuance of building permits because the issuance does not ordinarily involve discretionary determination.
Discretionary immunity as defined by this court is limited to “ ‘basic policy decisions.’ ” (Italics in orig.; Tarasoff v. Regents of University of California, 17 Cal.3d 425, 445-447 [131 Cal.Rptr. 14, 551 P.2d 334]; Johnson v. State of California (1968) 69 Cal.2d 782, 793 [73 Cal.Rptr. 240, 447 P.2d 352].) It does not apply merely because the decision may be difficult, requiring technical expertise. In Tarasoff, this court rejecting discretionary immunity, recently held that government employed psychiatrists could be held liable for negligently failing to diagnose the dangerous propensities of patients and to warn potential victims.
Issuance of a building permit will rarely if ever involve a “basic policy decision.” The plans either comply with the electrical, plumbing, foundation and other building code requirements and with the zoning requirements or the plans do not. Similarly, a builder either has obtained sufficient workers’ insurance or he has not. Although creation of building codes and other requirements for a building permit may involve “basic policy decisions,” the determination of compliance with those requirements and thus issuance or denial does not involve such a decision.
Because erroneously granting or denying a building permit would ordinarily result from error in determining compliance with the building code, zoning, or other requirement—obviously a ministerial function—the majority’s holding today means that in almost every case of erroneously granting or denying there will be liability—directly contrary to the legislative comment. By specifically referring to building permits in its comment to section 818.4, the legislative committee made clear its intent that the permit and licensing immunity should apply to building permits. The only reasonable conclusion is that the immunity conferred by that section is not limited to discretionary acts but extends to ministerial mistakes in the issuance of a building permit.
The dual purpose of the section 818.4 immunity also shows that it must apply when the permit is improperly granted either as a result of error in a discretionary function or in a ministerial one.
The 1963 Report of the California Law Revision Commission, pages 817-818, states: “Public entities and public employees should not be liable for failure to make arrests or otherwise to enforce any law. They should not be liable for failing to inspect persons or property adequately *922to determine compliance with health and safety regulations. Nor should they be liable for negligent or wrongful issuance or revocation of licenses and permits. The government has undertaken these activities to insure public health and safety. To provide the utmost public protection, governmental entities should not be dissuaded from engaging in such activities by the fear that liability may be imposed if an employee performs his duties inadequately. Moreover, if liability existed for this type of activity, the risk exposure to which a public entity would be subject would include virtually all activities going on within the community. There would be potential governmental liability for all building defects, for all crimes, and for all outbreaks of contagious disease. No private person is subjected to risks of this magnitude. In many of these cases, there is some person (other than the public employee) who is liable for the injury, but liability is sought to be imposed on government for failing to prevent that person from causing the injury. The Commission believes that it is better public policy to leave the injured person to his remedy against the pe.rson actually causing the injury than it is to impose an additional liability on the government for negligently failing to prevent the injury. And where no third party is liable—as in the case where a license application is denied—the aggrieved party has ample means for obtaining relief in the courts other than by tort actions for damages. Far more persons would suffer if government did not perform these functions at all than would be benefited by permitting recovery in those cases where the government is shown to have performed inadequately.” (See also, Van Alstyne, Cal. Government Tort Liability, supra, § 5.58, p. 166.)3
The grave potential liability created by today’s decision is too apparent. For example, the determination whether the proposed wiring of a building complies with the building code is usually if not always a ministerial determination, and under today’s majority decision public entities will face huge liabilities if required to repair approved but defective wiring or to compensate for fires caused by the defective wiring. While in the instant case the builder is bankrupt, the reasoning of the majority opinion would permit recovery against the public entity even if he were solvent.
Considering the magnitude of the potential liabilities, the Legislature and the legislative bodies of public entities will be forced to reconsider whether to repeal many health and safety regulations. It is no answer, as the majority suggest, that because the compensation insurance require*923ment is imposed by state law, the county may not refuse to enforce it. (Ante, p. 913, fn. 8.) The point is that the Legislature will be forced to choose among repealing health and safety requirements, continuing them but granting immunity, or continuing them with liability for lack of compliance. In my view, the commission’s report quoted above, the legislative committee’s comment, and the Legislature’s subsequent adoption of section 818.4 establish that the Legislature has already chosen, picking the second alternative, determining the sound course is to continue such health and safety requirements without governmental liability for negligence.
The majority also attempt to avoid the plain effect of the commission’s report by pointing out that a prior paragraph refers to “discretionary decisions.” But that reference appears prior to the commission’s addressing the specific problems of inspections, permits and licenses. To read the term “discretionary decisions” as modifying the paragraph quoted herein is not only contrary to the plain meaning of the paragraphs but also to the carefully articulated policy. Moreover, the inspection immunity is discussed in the quoted paragraph on the same basis as the permit immunity, and as the majority concedes the inspection immunity applies to ministerial as well as discretionary acts. (Ante, p. 916.)
Legislative committee comments and commission reports are highly persuasive—if not conclusive—statements of legislative intent as to the Tort Claims Act. On the basis of such statements, this court has overruled two of its own decisions, Cabell v. State of California (1967) 67 Cal.2d 150 [60 Cal.Rptr. 476, 430 P.2d 34, 34 A.L.R.3d 1154], and Becker v. Johnston (1967) 67 Cal.2d 163 [60 Cal.Rptr. 485, 430 P.2d 43]. (Baldwin v. State of California (1972) 6 Cal.3d 424, 435 [99 Cal.Rptr. 145, 491 P.2d 1121].)
The history of the Tort Claims Act also supports the conclusion that immunity for erroneously granting a building permit applies whether the error be categorized as discretionary or as ministerial.
Prior to Muskopf v. Corning Hospital Dist. (1961) 55 Cal.2d 211 [11 Cal.Rptr. 89, 359 P.2d 457], two general bases of sovereign immunity existed in California. First, although a public entity could be held liable for proprietary activities, “for torts committed in the course of a ‘governmental function’ there is no liability, unless the tort be classified as a nuisance.” (55 Cal.2d at pp. 216-217.) The second basis for immunity was set forth in the Muskopf companion case, Lipman v. *924Brisbane Elementary Sch. Dist. (1961) 55 Cal.2d 224, 229-230 [11 Cal.Rptr. 97, 359 P.2d 465]. Ordinarily public entities were not liable for discretionary conduct of their officials. Public officials and employees were also immune from liability for discretionary conduct within the scope of their authority. (Id., at p. 233.) However, they were liable for acts outside their authority (id., at pp. 234-235) and for ministerial, acts (e.g., Ellis v. City Council (1963) 222 Cal.App.2d 490, 498 [35 Cal.Rptr. 317]).
Muskopf repudiated the first basis of immunity—an entity’s immunity for governmental functions. As stated in Lipman, “[i]n Muskopf v. Corning Hospital District, ante, p. 211, we held that the rule of governmental immunity may no longer be invoked to shield a public body from liability for the torts of its agents who acted in a ministerial capacity.” (55 Cal.2d at p. 229.) However, the discretionary immunity rules were reaffirmed by Lipman, which applied them.4
The Tort Claims Act was, of course, a legislative response to the Muskopf and Lipman decisions. (Cf. Corning Hospital Dist. v. Superior Court (1962) 57 Cal.2d 488, 495 [20 Cal.Rptr. 621, 370 P.2d 325].) The immunity for discretionary acts recognized in Lipman was carried forth in the new act as follows: As to public entities, they were granted immunity in tort cases unless otherwise provided. (§ 815.) Although there was no express statutory immunity for discretionary conduct, section 815.6 predicated liability upon breach of a mandatory duty imposed by statute—thus impliedly eliminating liability for discretionary conduct. Public employee liability was approached differently. Breach of mandatory duly is not the basis of public employee liability. Public employees are made liable to the same extent as private persons. (§ 820.) Employee discretionary conduct not being exempt on the basis of the liability statute, there is an express immunity for discretionary conduct. (§ 820.2.) The effect of the four statutes combined is to codify the Lipman immunity for discretionary conduct.5
*925In addition to the implied immunity for discretionary conduct of public entities and the express immunity of public employees, the Legislature adopted a number of others. Thus immunity exists for adoption or failure to adopt or to enforce an enactment (§ 818.2 public entities, § 821 employees), for issuance, denial, or revocation of permits and licenses (§ 818.4 entities, § 821.2 employees), failure to inspect or negligent inspection (§ 818.6 entities, § 821.4 employees), and misrepresentations (§ 818.8 entities, § 822.2 employees). These additional immunity provisions are not merely redundant, applying only where discretionary conduct is involved, conduct which would in any event be immune first under the Lipman rule and second by negative implication under section 815.6 for entities, and by express provision under section 820.2 for employees. Rather, the additional immunity provisions apply whether or not the described activity should be classified in a particular case as discretionary or ministerial. While not adopting the entire governmental function immunity rejected in Muskopf, the Legislature chose to enact part of it because, as pointed out earlier, the alternatives would be either huge risk exposure or repeal of valuable health and safety regulations. We should not interfere with the legislative plan.
The language of section 818.4, the Law Revision Commission comments, its report, the legislative committee comment, and the history of the Tort Claims Act all lead to the conclusion that immunity from liability for erroneous issuance of a building permit applies whether the error is due to ministerial or discretionary mistake. Nevertheless, the cases are in conflict.
In State of California v. Superior Court (Veta) (1974) 12 Cal.3d 237, 245-246 [115 Cal.Rptr. 497, 524 P.2d 1281], the plaintiff sought mandamus and damages alleging that denial of his application for a land development permit was erroneous because he was denied a fair hearing. The court held that the gravamen of the action was the denial of the permit and that damages were not recoverable in the face of sections 818.4 and 821.2 immunities for refusal to issue a permit. There was no discussion whether the fair hearing requirement presented the agency with a basic policy decision or imposed a mandatory duty. The absence of any discussion of the discretionary-ministerial issue indicates it was irrelevant and that the sections apply to both discretionary and ministerial conduct.
*926The court in O’Hagan v. Board of Zoning Adjustment, supra, 38 Cal.App.3d 722, 725, 731, held that the immunity for licensing activities in sections 818.4 and 821.2 prevails over the mandatory duly liability of section 815.6 and that the immunity statutes as a matter of law barred any possible damages resulting from revocation of a use permit.6 The immunity provisions are the same for revoking a license as for granting a permit.
Holding that the inspection immunity of section 818.6 applies to ministerial as well as discretionary acts, the court in Clayton v. Rossman (1976) 62 Cal.App.3d 666, 670-671 [133 Cal.Rptr. 306], reasons that section 818.4 (the permit immunity) as well as section 818.6 extend to ministerial acts, that unless the sections were held to apply to ministerial acts as well as discretionary acts, they would be “superfluous,” and that the legislative committee comment to the sections so recognize.
One case has held (Elson v. Public Utilities Commission (1975) 51 Cal.App.3d 577, 587 [124 Cal.Rptr. 305]) and two have stated (Burns v. City Council (1973) 31 Cal.App.3d 999, 1004 [107 Cal.Rptr. 787]; Shakespeare v. City of Pasadena (1964) 230 Cal.App.2d 375, 386 [40 Cal.Rptr. 863]) that sections 818.4 and 821.2 apply only to discretionary and not to mandatory acts. Those cases focus on the final clause in the two sections stating that immunity applies to permits and licenses “where the public entity or an employee of the public entity is authorized by enactment to determine whether or not such authorization should be issued, denied, suspended or revoked.”
Professor Van Alstyne raises the issue without squarely disposing of it. Discussing permit immunity, he first quotes the Law Revision Commission rationale for the immunity (quoted earlier in this opinion) stating that if there is no immunity the liability would be immense. He continues by stating that “[to] the extent” decisions on licenses are discretionary, there is an overlap with the discretionary immunity; that this is a continuation of the “ ‘governmental’ ” function immunity of public entities; and that as to employee immunity, section 821.2 may overrule two prior decisions where recovery had been permitted for breach of mandatory duty to issue a license. Professor Van Alstyne then *927states “[i]t might be argued” that if issuance of a license had become a mandatory duty the official no longer could be regarded as “ ‘authorized ... to determine’ ” whether the license should issue within the meaning of the last clause of sections 818.4 and 821.2. (Van Alstyne, Cal. Government Tort Liability, supra, §§ 5.58-5.59, pp. 165-167.)
The last clause of the two sections should be interpreted literally. The immunity applies whenever the public entity or official is authorized by enactment to determine whether the permit should issue. It is undisputed in the instant case, for example, that the county was authorized by enactment to determine whether the permit should issue and the basis of the action is negligence in having issued the permit. The last clause limits immunity only where it is shown that there was no enactment authorizing action by the entity or the official—where there was usurpation of power. One and possibly both of the cases cited by Professor Van Alstyne in this connection seem to be such cases.7
The conflict in the cases should be resolved in favor of the legislative committee comment and the policy articulated by the commission. We should disapprove Elson, Burns, and Shakespeare, insofar as they state or hold that erroneously granting or denying a permit is actionable where the error is due to a ministerial mistake.
Applicability of the Tort Claims Act of 1963
Section 814.2 provides: “Nothing in this part shall be construed to impliedly repeal any provision of Division 4 (commencing with Section 3201) or Division 4.5 (commencing with Section 6100) of the Labor Code.”
The legislative committee comment provides: “This section makes clear that the statute relating to the liability of public entities and public *928employees has no effect on rights under the Workmen’s Compensation Act.”
Labor Code section 3800, stating local governments shall require workers’ compensation provision before granting a building permit, is included in division 4 of the Labor Code.
The language of section 814.2 shows that the Tort Claims Act of 1963 was not intended to have any applicability to the rights granted or duties imposed by the Workers’ Compensation Act, and the legislative committee comment shows that rights under that act must take precedence to the provisions of the Tort Claims Act. The instant action is predicated on the county’s asserted breach of a duty imposed by the Workers’ Compensation Act and the enforcement by the worker of his correlative right. It is apparent that the purpose of section 814.2 is that the provisions of the Tort Claims Act shall not interfere with recovery of benefits under the workers’ act. Plaintiff’s action, seeking recovery of compensation benefits lost due to the county’s asserted failure to enforce Labor Code section 3800, comes within that purpose. Accordingly, the Tort Claims Act is not applicable.
General provisions of law thus govern. Muskopf v. Corning Hospital Dist., supra, 55 Cal.2d 211, repudiated sovereign immunity for ministerial acts, and the instant action may be maintained for asserted breach of a statutory duty without justification or excuse, plaintiff being a member of the class to be protected. (Alarid v. Vanier, supra, 50 Cal.2d 617, 621-624; Lehmann v. Los Angeles City Bd. of Educ., supra, 154 Cal.App.2d 256, 259-261.)
I agree that the judgment should be reversed.
On March 3, 1977, the opinion was modified to read as printed above.

Unless otherwise indicated, all statutory references are to the Government Code.

I agree with the majority that Labor Code section 3800 imposes a mandatory duty, dictating that local governments shall require provision for workers’ compensation before granting a building permit.

The Legislature adopted the commission’s proposed section 818.4 with minor changes not relevant' here.

In Lipman, a school superintendent sought damages for defamatory statements made to obtain her removal against the school district, three trustees, the county superintendent of schools, and the district attorney. It was held that the district was immune because statements made within scope of authority came within discretionary conduct immunity and the district was not liable for acts outside the scope of authority. As to the individual defendants, it was held that discretionary immunity precluded recovery for acts within the scope of authority, while a cause of action could be stated for defamatory statements to the public which were not merely reports of official action but purported to be statements of fact within the official’s knowledge.

The Lipman opinion suggested that there might be cases of discretionary conduct where the employee would be immune but the public entity liable. (55 Cal.2d at *925pp. 229-230.) This suggestion was rejected by the Legislature “unless otherwise provided by statute.” (§ 815.2; see legislative committee comment to § 815.2.)

The court reasoned in part that the Legislature by adopting sections 818.4 and 821.2 had determined that licensing activities are discretionary. Although such reasoning differs from that employed in the earlier portion of this opinion, the result as to legislative intent and the effect of statute is the same—the intent to grant immunity for all licensing and permit activities, whether or not they might be categorized as ministerial for other purposes.

In Armstrong v. City of Belmont (1958) 158 Cal.App.2d 641 [322 P.2d 999], the electrical inspector approved the wiring but defendant members of the city council and city administrator refused to permit electrical service. The court affirmed judgment in favor of the city, a governmental function being involved, but the judgment in favor of the individual defendants was reversed. So far as appears there was no statute, charter provision, or ordinance authorizing the individual defendants rather than the inspector to refuse electrical connection permits.
The second case cited by Professor Van Alstyne might also be viewed as an usurpation of power case. In Ellis v. City Council, supra, 222 Cal.App.2d 490, defendant building inspector, although concluding that plaintiff had met all requirements for a swimming pool permit, refused to issue it until plaintiff remedied certain defects in a nearby structure which was not the subject of the permit application.