Court Opinion

ID: 9722114
Source: CourtListenerOpinion
Date Created: 2023-08-26 09:16:56.279847+00
Date Added: 2024-06-11T18:24:30.673022
License: Public Domain

REYNOSO, J.
I dissent. In my view, depreciation is to be considered in determining damages for replacing wooden power poles. My conclusion merits further discussion.
P. G. & E. argues that Public Utilities Code section 7952 precludes a depreciation credit for the reasons expressed in Pacific Gas & Electric Co. *257v. Mounteer (1977) 66 Cal.App.3d 809, 812-813 [136 Cal.Rptr. 280], The Mounteer court listed the many problems in determining the depreciation of utility poles: variations in ground and weather conditions, natural disasters, relocation, and underground placement of transmission lines. The court concluded that the Legislature knew of these problems and thereby eliminated them by disallowing a depreciation credit. (Id, at p. 813.) The reasoning is unpersuasive.
The extrinsic evidence of legislative intent (see Leg. History of Stats 1969, ch. 709, § 1, amending Pub. Util. Code, § 7952; Sen. Bill No. 939, introduced Apr. 8, 1969, amended in Senate May 13, 1969, amended in Assembly July 18, 1969; Enrolled Bill Memorandum to Governor (Sen. Bill No. 939) August 7, 1969; Leg. Counsel’s Report on Enrolled Bill, July 30, 1969. See also Cal. Legis. Reg. Sess. 1975-1976, Assem. Bill No. 3398 (Nov. 9, 1976); Sen. Com. on Judiciary Digest, 1975-1976, Reg. Sess., Assem. Bill No. 3398 (Dixon)), indicates only that the purpose of enacting the amendment to section 7952 is to insure the right of P. G. & E., and others similarly situated, to recover certain indirect, or allocated expenses, as well as their direct costs. I find no mention, either way, of a credit for depreciation. That the Legislature expressly stated the measure of damages is to be the cost of repair or replace, rather than the market value difference, implies an intent to eliminate the problems of market evaluation. It cannot, however, imply an intent to eliminate the long established principle allowing a depreciation credit. (Williams v. Los Angeles Metropolitan Transit Authority (1968) 68 Cal.2d 599, 603 [68 Cal.Rptr. 297, 440 P.2d 497].)
Given the above-stated intent of the Legislature to insure recovery of allocated expenses, it seems clear the Legislature did not intend to abrogate the principles of compensatory damages, but merely to state its decision to include allocated expenses within the definition of proximately caused compensatory damages. Since a very basic principle of damages is the idea such damages are compensatory in nature unless otherwise expressly provided (Civ. Code, § 3333), allowing a depreciation credit, to avoid windfall, is more in keeping with long established principles.
The wording used in the measure of damages portion of section 7952 includes reference to a credit for salvage. This express enumeration of a credit does not invoke the doctrine of expressio unius est exclusio alterius. The courts, absent express statutory provisions, will not find an implied abrogation of long established principles. (Williams v. Los Angeles Metropolitan Transit Authority, supra, 68 Cal.2d at p. 603.)
*258A credit for depreciation of the injured property is allowed, and required, under the measure of damages contained in section 7952. The depreciation should be based on the normal useful life of such property, without consideration of such factors as natural disaster destruction, relocation, undergrounding, tortious destruction, or other artificial limitations on the useful life. Since there is insufficient evidence in the record to make such a determination in this case, I would reverse and remand to the trial courts for determination of the applicable credits.
A petition for a rehearing was denied April 3, 1979. Reynoso, X, was of the opinion that the petition should be granted.