Court Opinion

ID: 9553862
Source: CourtListenerOpinion
Date Created: 2023-08-07 19:36:21.35584+00
Date Added: 2024-06-11T15:32:26.647863
License: Public Domain

BURKE, J.
I dissent. The majority hold that, as a matter of constitutional law, henceforth our trial courts must reweigh and independently adjudge decisions of local administrative agencies which touch upon “fundamental vested! rights.” The rationale employed to place this ruling upon a constitutional basis is that in 1950 the thousands of local boards in this state were deprived of the right to exercise quasi-judicial power. Given the critical importance of the majority’s new rule and the vast changes it will cause in administrative review, the question immediately comes to mind: Why has it taken nearly 25 years to make this startling discovery? The question is, of course, rhetorical; the cases (including a unanimous 1964 decision by this court) have considered and uniformly rejected the majority’s premise regarding the effect of the 1950 amendment to article VI of our state Constitution. Furthermore, if indeed local agencies may not exercise such quasi-judicial power, to weigh the evidence adduced at the hearings before them and to render binding decisions based thereon, in such widespread local activities as are conducted by such boards,* 1 what *47further principle excuses trial courts from independently adjudging the decisions of local agencies which do not affect fundamental vested rights, but at the same time constitute the exercise of quasi-judicial powers? The majority can not have it both ways; either local boards have quasi-judicial* 2 power or they do not. If, as the majority insist, such power no longer exists, then necessarily every agency decision of which someone complains must be independently reviewed by the courts. The majority’s premise, however, is patently, demonstrably incorrect, reversing an unbroken line of authority extending back more than 100 years.
In addition to other serious consequences which will follow today’s decision, the majority has taken from the Legislature (in an ironic violation of the separation of powers doctrine) its constitutional authority to provide for local governmental bodies and invest them with appropriate powers. Unless and until a remedial constitutional amendment has been adopted to rewrite into the Constitution that which the majority decision here emasculates (authority for such local agencies to exercise quasi-judicial power), courts will be required, for the first time in the history of this state, to undertake the unnecessary and burdensome task of reweighing and redeciding (without deference to administrative expertise) every complained of decision of the thousands of local boards which affect “fundamental vested rights.” Moreover, by improperly extending the scope of that term to include mere economic benefits, the majority vastly expand *48the number of decisions subject to independent judgment review.3 In view of the grave consequences of the majority’s decision and the errors contained therein, I will review the opinion at some length.
1. Constitutional sources of local agency powers—The majority incorrectly assume that the source of the power of local boards to exercise quasi-judicial (fact-finding) functions derived solely from article VI, section 1, of our Constitution, which vests judicial power in the courts, and which formerly authorized the Legislature to establish “inferior courts” in towns, cities and counties. Of course, the majority’s premise, weak as it seems, is that local administrative agencies were considered “inferior courts” by the framers of our Constitution. This premise was exploded over 100 years ago.
As early as 1868, this court correctly pointed out that it was unnecessary to resort to the “expediency” of holding that article VI, section 1, presents an exception to the separation of powers provision in article III. In People v. Provines (1868) 34 Cal. 520, the court explained that article III “means that the powers of the State Government, not the local governments thereafter to be created by the Legislature, shall be divided into three departments, and that the members of one department shall have no part or lot in the management of the affairs of either of the other departments . , . .” (P. 534, italics by the court.) With respect to local government, “. . . the Constitution does not, of itself—ex proprio vigore—create or establish any local or municipal governments; but, assuming that such governments will be required, provides that they shall be created and established by the Legislature, and there drops the subject. . . . [Citing various provisions of article XI regarding the Legislature’s power to establish local government bodies.] These provisions show very clearly that the creation and regulation of local and subordinate governments, such as county, city and town governments, is not attempted in the Constitution; and the whole subject of local and subordinate governments is, by that instrument, turned over to one branch of the Government, which it provides and defines, with certain admonitions only for its guidance.” (Pp. 532-533.)
The court in Provines substantiated its analysis of the scope of article III by noting that “The mischief . . . against which they [the framers of *49the various state Constitutions] sought to provide, did not come from inferior or subordinate officers, but from the higher grades, in whose hands the first and leading powers of the Government were vested. So far as the former were concerned, they were sufficiently under the control of the latter. . . . Hence, the framers of American Constitutions were content with checks upon the latter, leaving the former, as we consider, to be regulated by the Legislative Department.” (P. 537.)
Thus, Provines teaches us that the Constitution does not contain any limitation upon the powers of local government, other than as are contained in the Constitution itself or in statutes or charters adopted pursuant thereto. Accordingly, no constitutional prohibition prevents local boards from exercising quasi-judicial functions subject to ordinary substantial evidence review by the courts. The Provines rule has been consistently followed in subsequent cases. (See Wulzen v. Board of Supervisors (1894) 101 Cal. 15, 25-26 [35 P. 353]; Holley v. County of Orange (1895) 106 Cal. 420, 423-424 [39 P. 790]; Dierssen v. Civil Service Commission (1941) 43 Cal.App.2d 53, 59-61 [110 P.2d 513]; County of Mariposa v. Merced Irr. Dist. (1948) 32 Cal.2d 467, 476 [196 P.2d 920].) It is true that some cases have suggested that the “inferior courts” language in former article VI also furnished a basis for the exercise of judicial functions by local government. (See Drummey v. State Bd. of Funeral Directors (1939) 13 Cal.2d 75, 81 [87 P.2d 848]; Laisne v. Cal. St. Bd. of Optometry (1942) 19 Cal.2d 831, 847 [123 P.2d 457].)4 Yet no case has ever considered article VI to be the sole source of that authority; indeed, the cases have followed Provines’ assertion in 1868 that article XI (the “home rule” provisions), in conjunction with article III (requiring a separation of the powers of state government), furnish additional, independent support.
Thus, in 1941 the Court of Appeal handed down its oft-cited opinion in Dierssen v. Civil Service Commission, supra, 43 Cal.App.2d 53, 59, an opinion authored by then Presiding Justice Raymond E. Peters. The court, flatly rejecting the argument now raised by the majority herein, *50noted that “The question as to whether by charter provision local boards, such as a civil service commission, may be invested with judicial fact finding powers seems never to have been seriously questioned in this state. The books are full of cases expressly or impliedly holding that where fact finding powers have been conferred on local boards their determination will not be set aside unless an abuse of discretion is pleaded and proved, that is, unless it be alleged and proved that the board acted arbitrarily, capriciously or fraudulently. [Citations.]” (Italics added.) The court acknowledged that in such cases as Standard Oil Co. v. State Board of Equal. (1936) 6 Cal.2d 557 [59 P.2d 119], and Drummey v. State Bd. of Funeral Directors, supra, 13 Cal.2d 75, this court had imposed restrictions upon the exercise of judicial or quasi-judicial power by state-wide agencies, on the theory that article VI, section 1, vests the entire judicial power of the state in the courts. “All of those cases . . . expressly recognized that the holdings therein were applicable only to state-wide boards and did not apply to local boards.” (Dierssen, supra, at pp. 59-60.) Justice Peters observed that local boards are governed by special constitutional provisions, such as “the broad provisions of article XI, section 6, of the Constitution dealing with the powers of chartered cities.” (P. 60; accord: Le Strange v. City of Berkeley, supra, 210 Cal.App.2d 313, 322 [see fn. 2, ante].)
The “special constitutional provisions” relied upon by Justice Peters are now set forth throughout the various sections of article XI; these “home rule” provisions indicate quite clearly an intent to vest broad constitutional powers of self-government upon local governmental bodies. For example, section 7 contains language similar to that contained in former section 6, relied upon in Dierssen; that section provides that “A county or city may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws.” With respect to county powers, the following additional provisions also confirm the conclusion that a county may be empowered (either by the Legislature or by charter) to perform quasi-judicial functions: (1) Section 1, subdivision (b), which provides that the Legislature shall provide for county powers; (2) section 4, subdivision (e), which provides that county charters shall provide for the powers and duties of governing bodies and county officers; (3) section 4, subdivision (f), which provides that county charters shall fix and regulate the powers, duties, qualification and compensation of county employees; (4) section 4, subdivision (h), which provides that charter counties shall have all powers that are provided by the Constitution or by statute for counties. In the instant case, the retirement board exercises quasi-judicial functions pursuant to statutory authority. (See Gov. Code, § 31534; Flaherty v. Board of Retirement, 198 Cal.App.2d 397, 407-408 *51[18 Cal.Rptr. 256].) As noted above, the Legislature derives its own authority to provide for county powers directly from the Constitution. (Art. XI, § 1, subd. (b).)
In sum, then, the majority err in assuming that local agencies lack a constitutional basis for the exercise of quasi-judicial functions.5 Nothing contained in the Constitution limits local powers (as art. Ill pertains solely to state government, as the majority concede), and the home rule provisions of article XI vest broad power in local government (flowing from charter provision or legislative grant).
2. The effect of the 1950 amendment to article VI—The majority insist that Dierssen was incorrectly decided, and that the sole constitutional provision empowering local boards to exercise judicial functions was contained in the “inferior courts” language of former article VI, section 1, which language was deleted by a 1950 constitutional amendment. As I have explained, however, Dierssen simply continued the unbroken chain of cases which commenced in 1868 with Provines and which held that the state Constitution imposes no limitation upon the power of local government in dealing with municipal affairs.
Yet the conclusive refutation of the majority position is that the Court *52of Appeal, and this court, long ago considered and rejected the argument that the 1950 amendment had any effect upon judicial review of local administrative decisions. First, in 1953, the court in Savage v. Sox, 118 Cal.App.2d 479, 485-488 [258 P.2d 80], was faced with the contention that, by reason of the 1950 deletion of language empowering the Legislature to create “inferior courts,” local administrative bodies thereby lost their former authority to exercise quasi-judicial functions. Justice Bray, writing for a unanimous court, reviewed the Provines and Dierssen decisions discussed above and held as follows: “The quasi-judicial power of local boards and officers . . . has been upheld upon two theories: (1) that of cases like the Dierssen case, supra, 43 Cal.App.2d 53, applying the home rule provision of the Constitution, and (2) that of such cases as Standard Oil Co. v. State Board of Equal., supra, 6 Cal.2d 557, applying the former language of article VI, section 1, of the Constitution. The purpose of the 1950 amendment to that section as shown by the arguments to voters was to reduce the number of inferior courts in the state, not to interfere in anywise with the quasi-judicial powers of boards and officers who are not courts in the sense of that section. . . . The power exerted in this case [discharge from civil service] is a purely municipal affair and the voters in reducing the number of inferior courts never intended to, nor did they, in any way interfere with the rights granted municipalities, counties and cities and counties in the other portions of the Constitution. The elimination of the power of the Legislature to provide other inferior courts than the municipal and justice courts still left the constitutional provisions under which the charter of a city and county could lawfully confer quasi-judicial powers on boards or commissions dealing strictly with municipal affairs.” (P. 488; italics by the court.)
Next, in 1964, this court expressly and unanimously approved Savage and its interpretation of the effect of the 1950 amendment. In Berggren v. Moore, 61 Cal.2d 347, 349 [38 Cal.Rptr. 722, 392 P.2d 522], plaintiff had contended that the trial court erred in refusing to exercise its independent judgment regarding the decision of a city council to adopt a redevelopment plan. We disagreed: “Plaintiffs’ further suggestion that such holding [refusal to exercise independent judgment) contravenes the intent of the 1950 amendment of section 1 of article VI of the California Constitution is likewise without merit. (See Savage v. Sox, [supra], 118 Cal.App.2d 479, 485-488 . . . .)”
One would have assumed that our decision in Berggren settled the matter. Indeed, as recently as 1966, one textwriter commented that “Local agencies can exercise ‘judicial’ functions, simply because Cal. Const., art. *53ITT, § 1, establishing the separation of powers, does not apply below the state level.” (Cal. Administrative Mandamus (Cont.Ed.Bar 1966) § 1.3, p. 5, citing People v. Provines, supra, 34 Cal. 520.)
I fail to understand on what basis the majority now decided to abandon the reasoning of Savage and Berggren regarding the effect of the 1950 amendment. Certainly, no new information has come to light since 1964 regarding the intent of the framers of that amendment; my own research conclusively discloses that the amendment was not intended to effect any substantive change whatever in the functioning of local administrative decisions, or in. judicial review of the decisions of those agencies. (See Judicial Council of Cal., 12th Biennial Report (1948) pp. 13-20, 41; Judicial Council of Cal., 14th Biennial Report (1953) pp. 13-14). Since the authorities uniformly held, prior to 1950, that local boards properly exercised quasi-judicial functions, by reason of the homerule provisions of article XI and the narrow scope of article III, and since it is clear that the 1950 amendment to article VI was not intended to effect a change in the law applicable to local boards, how can this court in 1974 (following contrary decisions in 1953 and 1964) seriously suggest that the 1950 amendment caused radical and revolutionary changes in administrative law? Under the majority’s analysis, for nearly 25 years local boards have been exercising powers that they no longer possess; likewise, the trial courts have, for that period, improperly failed to undertake their constitutional responsibility to exercise independent review. In my view, this analysis is absurd.
The majority’s decision has the additional unfortunate effect of placing the important question of the scope of review of local agencies beyond the control of the Legislature. In so doing, the majority overrule, either expressly or sub silentio, the Provines-Dierssen line of cases (holding that local agencies derive their powers from home rule provisions or from the Legislature, and not from art. VI), and the Savage and Berggren cases (regarding the effect of the 1950 amendment). In addition, the majority overrule a dozen or more cases of this court holding that the substantial evidence test controls in all cases involving local agency review6 and scores *54of other cases holding that the decisions of local retirement boards such as respondent board herein are subject to a substantial evidence review.* ****7 Finally, the majority have acted in apparent realization that their interpretation of the constitutional provisions at issue faces a broad front of “contrary opinion” by legal scholars.8 The majority pass over these contrary opinions with the comment that, to the extent these scholars express a contrary opinion, “we disagree with them.” (ante, p. 36, fn. 6.) Such disagreement by fiat is the prerogative of the majority, but one might have hoped for a more persuasive insight into the problem.
*553. Fundamental Vested Rights—Finally, I strongly oppose the majority’s ruling that the instant case involves a “fundamental vested right”; this case concerns nothing more than a choice between two types of survivor retirement benefits. Plaintiff clearly will receive a benefit of some kind, albeit the benefits differ in amount; a mere quantitative difference in the amount at issue should not be considered to involve a fundamental right. Otherwise, literally thousands of routine agency decisions adjusting or decreasing economic benefits will henceforth be considered “fundamental,” requiring our busy trial courts to independently evaluate and reweigh all factual aspects of these often complex and technical proceedings. (For example, many cases, such as the instant case, will present complicated medical questions best resolved by the local agency equipped to do so, rather than by a trial court working only with the cold administrative record before it.)
Although the cases refer to retirement benefits as being “vested” in the member and his beneficiaries,' no vested right to a benefit in a specific amount arises until the happening of the contingency upon which the benefit is payable. (See Packer v. Board of Retirement, 35 Cal.2d 212, 215-218 [217 P.2d 660]; Kern v. City of Long Beach, 29 Cal.2d 848, 855 [179 P.2d 799]; Casserly v. City of Oakland, 6 Cal.2d 64, 66-69 [56 P.2d 237].) The case most analogous is Bertch v. Social Welfare Dept., 45 Cal.2d 524, 529 [289 P.2d 485], wherein this court held that an applicant for old age benefits is not entitled to an independent judgment review of an adverse administrative decision: “Petitioners here were not possessed of a vested right, but the right to make application for old age benefits provided that they were able to comply with the statutory prerequisites therefor (Welf. & Inst. Code, § 2160 et seq.).” (See also Taylor v. Martin, 28 Cal.App.3d 1057 [105 Cal.Rptr. 211] [welfare benefits].) In the instant case, the right to a service-connected death benefit was similarly contingent upon compliance with statutory prerequisites, including proof of a service-connected death.
For the reasons set forth above, I respectfully dissent to the majority opinion.
McComb, J., and Roth, J.,* * concurred.

I.e., activities such as those entrusted to city councils, boards of trustees, school boards, boards of freeholders, charter revision commissions, zoning boards, planning *47commissions, variance boards, appeals boards under building codes, fire and police appeals boards, pension and retirement boards, civil service and merit systems boards and commissions, civic parade boards, business licensing boards, parks and playgrounds boards, recreation commissions, animal shelter boards, zoo boards, library boards and many others.

Unlike the majority (ante, p. 42, fn. 14), I do not find the term “quasi-judicial” to be an inaccurate or unacceptable description of the administrative adjudicatory process, including fact-finding and decision-making functions. As stated by Justice Molinari in Le Strange v. City of Berkeley, 210 Cal.App.2d 313, 322-323 [26 Cal.Rptr. 550], “A municipality may lawfully confer quasi-judicial powers on boards or commissions dealing solely with municipal affairs. This power is acquired by municipalities under Article XI, section 8V2, subdivision 4 of the Constitution. [Citation.] ... [11] The essential characteristic of the quasi-judicial body is its fact finding power and the concomitant requirement to make a determination or adjudication of fact in connection with matters properly submitted to it after a hearing. [Citations.]”
The foregoing power is termed “quasi-judicial” because it invohifes an adjudication of rights subject to judicial review under heretofore well-defined standards. In essence, we are faced herein with the question whether any provision of our Constitution forbids local boards the power to make fact findings which must be upheld by the courts if supported by substantial evidence and are not the result of arbitrary, capricious, or fraudulent action. Relief from the latter class of actions has always been available through appropriate court action.

See Bixby v. Pierno, 4 Cal.3d 130, 144-147 [93 Cal.Rptr. 234, 481 P.2d 242], My views regarding the need for a uniform substantial evidence review of all administrative decisions are set forth in my dissent in that case (p. 151) and will not be repeated here.

One commentator criticized Laisne’s reliance upon article VI in this respect, noting that previously “. . . the law of the State was long settled both as to statewide boards and local boards, and no one dreamed of calling local boards ‘inferior courts.’ Again, the truth is that these local agencies, like the statewide agencies, are created, not in exercise of power to create courts, but in exercise of the general legislative power to pass laws and provide agencies for their administration, agencies lying outside the judiciary. The limited degree of finality in deciding issues of fact which the legislature gives them is not exclusively a judicial function.” (McGovney, The California Chaos in Court Review of the Decisions of State Administrative Agencies, 15 So.Cal.L.Rev. 391, 409-410; see Dare v. Bd. of Medical Examiners, 21 Cal.2d 790, 812-813 [136 P.2d 304] [conc. & dis. opn. by Traynor, J.].)

As I understand it, the majority’s ruling is based primarily upon the premise that, in the absence of an express constitutional grant of power, local agencies may not exercise quasi-judicial functions. Yet as the Provines and Dierssen cases so clearly explain, such a grant of power is implicit in the home rule provisions of article XI and in the powers granted the Legislature to provide for local agencies of government contained in that article, and the limitation of article III to state government. The majority rely upon the remarks of a “leading commentator in the field of local government” to the effect that a municipality has no “inherent right of self government . . . .” (ante, p. 37, fn. 7.) Yet, as this same commentator explains in a subsequent chapter of his work, “In addition to powers conferred on municipal corporations by express enumeration in the constitution, statutes or charter, it is beyond dispute that municipal corporations possess certain implied, sometimes referred to as incidental, powers . . . .” (Italics added; 2 McQuillin, Municipal Corporations (1966 3d rev. ed.), § 10.12, pp. 765-766.) These implied powers include those powers necessarily or reasonably arising from those powers expressly granted, those powers essential to give effect to powers expressly granted, and those powers regarded as indispensable to local government to enable the municipality to fulfill the objects for which it was formed. (Id., pp. 767-771.) The power to conduct fact-finding hearings and make decisions having at least a limited finality (being subject to ordinary substantial evidence review) seems clearly implicit in the constitutional grant of power under article XI. Under the majority view, such fact-finding hearings would serve little purpose, since the findings and conclusions which result therefrom must be ignored by the trial court in reweighing the evidence and redetermining the case in order to fulfill its newly imposed obligation to render an independent judgment review of the cold record before it.

See, e.g., Berggren v. Moore, supra, 61 Cal.2d 347, 349; In re Redevelopment Plan for Bunker Hill, 61 Cal.2d 21, 39 [37 Cal.Rptr. 74, 389 P.2d 538]; Albonico v. Madera Irr. Dist., 53 Cal.2d 735, 739 [3 Cal.Rptr. 343, 350 P.2d 95]; Damiani v. Albert, 48 Cal.2d 15, 17 [306 P.2d 780]; Atchison etc. Ry. Co. v. Kings Co. Water Dist., 47 Cal.2d 140, 143 [302 P.2d 1]; Thompson v. City of Long Beach, 41 Cal.2d 235, 239-240 [259 P.2d 649]; Fascination, Inc. v. Hoover, 39 Cal.2d 260, 264-266 [246 P.2d 656]; Covert v. State Board of Equalization, 29 Cal.2d 125, 131 [173 P.2d *54545]; La Prade v. Department of Water & Power, 27 Cal.2d 47, 53 [162 P.2d 13]; Walker v. City of San Gabriel, 20 Cal.2d 879, 884 [129 P.2d 349, 142 A.L.R. 1383] [conc. opn. by Traynor, J.]; Laisne v. Cal. St. Bd. of Optometry, supra, 19 Cal.2d 831, 847; Imperial Water Co. v. Supervisors, 162 Cal. 14 [120 P. 780]; see Code Civ. Proc., § 1094.5, subd. (c); Cal. Administrative Mandamus, supra, § 5.65, p. 75.

See, e.g., Petry v. Board of Retirement, 273 Cal.App.2d 124, 127 [77 Cal.Rptr. 891]; Rau v. Sacramento County Ret. Bd., 247 Cal.App.2d 234, 236 [55 Cal.Rptr. 296]; Flaherty v. Board of Retirement, supra, 198 Cal.App.2d 397, 408 [18 Cal.Rptr. 256]; Robinson v. Board of Retirement, 140 Cal.App.2d 115, 117 [294 P.2d 724]; Corcoran v. S. F. etc. Retirement System, 114 Cal.App.2d 738, 740 [251 P.2d 59]; Rogers v. Retirement Board, 109 Cal.App.2d 751, 757 [241 P.2d 611]; Odden v. County Foresters etc. Board, 108 Cal.App.2d 48, 49 [238 P.2d 23]; Dornell v. Retirement Board, 72 Cal.App.2d 197, 198-199 [164 P.2d 266]; Ware v. Retirement Board, 65 Cal.App.2d 781, 788 [151 P.2d 549]; Murphy v. Retirement Board, 49 Cal.App.2d 58, 60-61 [121 P.2d 101]; Naughton v. Retirement Board of S. F., 43 Cal.App.2d 254, 262-263 [110 P.2d 714] [conc. opn. by Peters, P. J.].

See generally, California Administrative Mandamus, supra, section 1.3, page 5; Kleps, Certiorarified Mandamus: Court Review of California Administrative Decisions 1939-1949, 2 Stan.L.Rev. 285, 291-292; Kleps, Certiorarified Mandamus Reviewed: The Courts and California Administrative Decisions 1949-1959, 12 Stan.L.Rev. 554, 560-562; McGovney, The California Chaos in Court Review of the Decisions of State Administrative Agencies, 15 So.Cal.L.Rev. 391, 409-410; Peters, Review of Administrative Board Rulings Limited to Writ of Mandate, 14 State Bar J. 313; Elliott, Certiorari and the Local Board, 29 Cal. L. Rev. 586; Comment, Scope of Judicial Review of Local Administrative Agencies in California, 29 So.Cal.L.Rev. 332.
For example, Ralph Kleps in commenting upon the effect of the 1950 amendment stated that “No one would suggest at this late date [1960] that the disappearance of this major prop for the Standard Oil Co. decision will seriously modify the established doctrines in this field, but a district court of appeal has found itself compelled [in Savage v. Sox\ to re-examine the theoretical basis upon which the normal quasi-judicial powers of local administrative agencies rest. The district court of appeal conceded that local agencies could no longer be regarded as inferior courts. The opinion concluded, however, that the separation of powers clause is limited in application to state agencies, and that local agencies are made predominant in respect to municipal affairs by the home rule charter provisions of article XI of the constitution. Under this analysis, the court found no difficulty in sustaining the exercise of normal quasi-judicial powers by local agencies created by chartered cities or counties.” (Kleps, supra, 12 Stan.L.Rev. at p. 561.)