Lawrence v. Superior Court of San Mateo Cnty.
Lawrence v. Superior Court of San Mateo Cnty.
Opinion of the Court
*398*516Petitioner Brandon Lawrence, dba Sportscars Italiano, sought a writ of mandate in the superior court to compel the California Highway Patrol (CHP) to restore possession of a classic sports car that the CHP seized from him after it received a report that the car had been stolen from a prior owner before petitioner acquired it. The court denied his petition without prejudice and set the matter for trial to determine the rightful owner of the car in an interpleader action filed by the CHP. Petitioner now seeks a writ of mandate compelling the superior court to set aside that order and have the car returned to him immediately. We will grant the writ.
*517FACTUAL BACKGROUND AND PROCEDURAL HISTORY
Petitioner is "a longtime broker and dealer of classic cars." In March 2015, he arranged to purchase, on behalf of an investor named Philip White, a rare 1947 Cisitalia automobile from a Japanese construction company called Ohtomi Kensetsu Kabushiki Kaisha (Ohtomi). Following shipment of the car from Japan, petitioner oversaw efforts to restore it to its original configuration and appearance.
In late 2016 or early 2017, a stolen vehicle report was filed with the CHP on behalf of the person who owned the Cisitalia prior to Ohtomi, a Japanese citizen named Kiyoshi Takihana. The report, submitted by a private detective on the latter's behalf, claimed that Ohtomi had stolen the car from Takihana two years earlier. Based on that accusation, in March 2017 the CHP seized the car from a repair shop where petitioner was having work performed. The car was impounded and has since been held by the CHP at an undisclosed location.
Petitioner and his counsel communicated with officials at the CHP, providing evidence indicating that Takihana's complaint was not that the car had been stolen, but rather that Ohtomi had failed to pay the full amount due under their purchase agreement. They also advised the CHP that the car was fragile, requiring extraordinary care and handling. After investigating the matter for four months, the CHP determined that the dispute was essentially civil in nature but refused to return the car to petitioner absent a valid court order.
On August 10, 2017, petitioner filed an action in San Mateo County Superior Court, seeking a writ of mandate, declaratory relief, and injunctive relief compelling the car's immediate return. He argued that under Ensoniq v. Superior Court (1998)
On August 11, 2017, petitioner filed an ex parte application for an order to show cause why a writ of mandate should not *399issue requiring the CHP to return the car. That same day, the trial court issued an order to show cause (OSC), ordering the CHP to either return the car to petitioner or to file papers demonstrating why the car should not be returned. The court directed petitioner to serve Takihana with the petition and the OSC. *518On August 24, 2017, the CHP served its response to the OSC. The CHP argued that the car should not be returned to petitioner "because there are conflicting, competing claims of ownership of the car, and the CHP is unable to determine who is the true owner." The CHP indicated it was no longer investigating the stolen car report as a criminal matter. However, it declined to return the car without a court order, believing liability "would flow" if it gave the car to the "wrong claimant." It contended petitioner had presented insufficient evidence that he owned the car, and claimed it had no duty to return the car under Ensoniq because that case's holding applied to "true" owners only. It urged that responsibility for the car should be transferred to the trial court via an interpleader proceeding to resolve the competing claims of ownership.
Petitioner's reply argued that there was no legal basis for the CHP to continue to detain the car. He also filed a declaration outlining the harm that might come to the car if it were being improperly stored. He explained that "continued storage of a fragile 70 year-old automobile in a facility whose employees are not trained to care for such vehicles is likely to cause serious, possibly irreparable harm. Among other things, this all-aluminum Cisitalia is particularly vulnerable to moisture and needs to be in a controlled, dehumidified environment."
On August 31, 2017, the trial court held a hearing on the OSC. At the hearing, the court inquired into the status of court proceedings in Japan regarding the car. Counsel for the CHP represented that one person had been arrested and "there's been no confirmation whether criminal proceedings will be instituted. There is [an] ongoing civil proceeding." She also said she had been in contact with a California lawyer representing Takihana, who would be appearing in court at some point. Counsel also told the court that the car was being properly stored "in a temperature constant environment without humidity away from people and tools ...." She further explained that the identity of the car's custodian had to be kept secret because "there are some, what they call criminal conspiratorial elements, around the transfer of this car along the way to its arrival here in San Mateo and the custodian has indicated that he fears for both his personal safety and the safety of the car if his identity is disclosed." No evidence was submitted in support of counsel's representations.
The trial court discussed with counsel the possibility of entertaining an interpleader action. Petitioner's counsel insisted that under Ensoniq, the issue of ownership is separate from the right to possession, arguing that Takihana could assert his ownership rights in a separate action. In the meantime, counsel urged, the car should be returned to petitioner, the person from whom it was seized.
*519The trial court ultimately denied the petition for writ of mandate without prejudice pending the filing of the interpleader complaint by the CHP. It ordered the CHP to file its complaint by September 8, 2017. In its written order, filed on September 29, 2017, the court also ordered that the car continue to be stored in its current location.
On September 8, 2017, the CHP filed its cross-complaint in interpleader. The document names as cross-defendants all of the persons, including petitioner, White, and *400Takihana, who had claimed a right to the car at some point in its journey from Japan to California. Takihana filed a cross-complaint.
According to Takihana's cross-complaint, in September 2015 he was seeking financing for a business and was contacted by Ryuji Hasegawa, the principal of Ohtomi. Hasegawa allegedly expressed interest in providing financing if Takihana were willing to provide two Cisitalia automobiles as security.
Attached to Takihana's cross-complaint are documents in Japanese with translations. They appear to show that Takihana acquired the Cisitalia in 2007. Ohtomi is listed on one document as "[o]wner of temporary obliteration period," although it is unclear what this means. The documents also show confirmation of the Cisitalia's export in 2015.
On September 29, 2017, petitioner filed the instant petition.
On November 2, 2017, we issued a stay of the trial court proceedings and an order to show cause why the petition filed in this court should not be granted. We requested preliminary opposition, and both the Attorney General and Takihana have submitted responses.
DISCUSSION
I. Propriety of Writ Proceeding
The trial court's order denied petitioner's petition for writ of mandate without prejudice, but it left open for resolution in the interpleader action his causes of action for declaratory and injunctive relief. Consequently, the court's order did not dispose of all of his causes of action, and some remain pending.
*520"Although a petition for writ of mandate is a special proceeding, and '[a] judgment in a special proceeding is the final determination of the rights of the parties therein[ ]' [citation], the denial of a petition for writ of mandate is not appealable if other causes of action remain pending between the parties." ( Nerhan v. Stinson Beach County Water Dist. (1994)
II. Ensoniq
Petitioner seeks a writ of mandate to compel the CHP to carry out what he claims is its ministerial duty to return the car to him. In addition, he seeks supplemental *401writs of prohibition to restrain the interpleader proceedings, along with a writ of certiorari to further compel the CHP to return the car to him. The parties appear to agree that Ensoniq , supra ,
In Ensoniq , an individual named Jon Dattoro was employed as a design engineer by Ensoniq Corporation, which developed computer software to operate musical instruments. ( Ensoniq , supra , 65 Cal.App.4th at p. 1543,
Subsequently, Ensoniq's attorney contacted the Santa Clara County District Attorney's office to report the theft of its trade secrets. ( Ensoniq , supra , 65 Cal.App.4th at p. 1543,
Dattoro then filed a motion for return of property under Penal Code sections 1536,
The Court of Appeal granted review by writ of mandate. ( Ensoniq , supra , 65 Cal.App.4th at pp. 1543, 1546,
As to the appropriate procedure, the Ensoniq court held: "We find that due process requires the People to prove by a preponderance of the evidence that the seized property was stolen or embezzled , in a situation where no charges are pending and no conviction has been obtained. Although it may be suspected that the seized property was stolen, that fact must be proven by due process of law. [Citation.] ' Evidence Code section 637 provides that the "things which a person possesses are presumed to be owned by him." ' [Citation.] Thus, with regard to a determination of theft under [Penal Code] section 1411,[
The Ensoniq court went on to hold that Dattoro's motion for return of property had to be granted because the People did not allege and could not prove that the seized property was stolen. ( *403Ensoniq , supra , 65 Cal.App.4th at p. 1551,
III. Application
Petitioner contends that the trial court's order approving the interpleader action conflicts with Ensoniq. He surmises that the lower court conflated the issues of ownership and possession in rendering its decision. In petitioner's view, the only issue before the superior court at this stage was who had the right to present possession of the Cisitalia. He does not dispute Takihana's right to file an independent civil action to establish ownership. He argues that under Ensoniq , however, the CHP must either prove by a preponderance of the evidence that he stole or embezzled the property or it must release the car to him. (See Ensoniq , supra , 65 Cal.App.4th at p. 1550,
We agree that Ensoniq requires the CHP to return the car to petitioner. As he correctly notes, the CHP has not only decided not to seek criminal prosecution, it proffered no evidence in response to the trial court's OSC. Nor has the CHP contradicted his evidence showing that he legitimately purchased the car. Under these circumstances, the due process principles set forth in Ensoniq require the car be returned to him.
Further, under Ensoniq, it is immaterial whether a third party considers itself entitled to the property. Nor does it matter that the law enforcement agency in question cannot resolve the conflicting claims of ownership. (See Ensoniq , supra , 65 Cal.App.4th at pp. 1551-1552,
*524Petitioner also cites to the Ensoniq opinion for the proposition that "the only question to be decided at this stage is 'the *404right of actual possession,' "
Petitioner's property rights are clearly implicated in this case. He observes that in addition to being deprived of his ownership interest in a vehicle for which he paid more than $1 million (a deprivation that would continue over the life of the CHP's interpleader action), "the vehicle itself is threatened with being damaged beyond repair as a consequence of receiving inadequate care in CHP storage." He also notes the CHP has offered no evidence in support of its counsel's representations as to the car's safety.
The CHP argues that Ensoniq does not establish "a clear, present and ministerial duty to return the car [to petitioner]."
The obvious flaw in this argument is that the CHP has concluded its investigation and has never alleged that petitioner committed any criminal offense. Even assuming that Takihana's allegations are true, there is no suggestion that petitioner was aware that anyone in Japan had absconded with the vehicle before he elected to purchase it. Thus, at most, petitioner is the unwitting purchaser of a stolen car. Moreover, accepting the CHP's argument would mean that petitioner, who has never been accused of a crime, would have fewer rights regarding seized property than Dattoro, who was suspected of theft and was the subject of a search warrant. ( Ensoniq , supra , 65 Cal.App.4th at pp. 1543-1544,
The CHP also seeks to distinguish Ensoniq on its facts, claiming that in that case the district attorney took a neutral position on the request for return, whereas in this case the CHP is "not neutral" because *405it has objected to returning the car to petitioner. However, while the deputy district attorney in Ensoniq did not contest Dattoro's request for return of the seized property, he also commented, " 'It seems to me that we're in possession as a sort of neutral party of property seized under warrant by a judge.' " ( Ensoniq , supra , 65 Cal.App.4th at p. 1545,
The CHP also contends the due process principles on which the Ensoniq court relied do not require return of the car to petitioner, since the CHP cannot determine the car's rightful owner. This argument ignores Ensoniq 's teaching as to the presumption of ownership that attaches to petitioner's possession of the car. (See Ensoniq , supra , 65 Cal.App.4th at p. 1549,
In justifying the trial court's denial of petitioner's petition for writ of mandate, the CHP postulates that it would not be immune from liability under Government Code section 821.6 ( section 821.6 ) if it returns the car to the "wrong" claimant. While the issue is not directly before us, we note the CHP's justification appears to be questionable.
*526" Section 821.6 provides that '[a] public employee is not liable for injury caused by his instituting or prosecuting any judicial or administrative proceeding within the scope of his employment, even if he acts maliciously and without probable cause.' This immunity provision is to be construed broadly so as to further 'its purpose to protect public employees in the performance of their prosecutorial duties from the threat of harassment through civil suits.' [Citations.] For purposes of this immunity provision, investigations are deemed to be part of judicial and administrative proceedings." ( Strong v. State of California (2011)
Section 821.6 not only "immunizes ... the act of filing or prosecuting a judicial or administrative complaint, but also extends to actions taken in preparation for such formal proceedings," including "[a]n investigation before the institution of a judicial proceeding" and "[a]cts undertaken in the course of an investigation." ( Gillan v. City of San Marino (2007)
Additionally, "[t]he California Supreme Court has observed that although ' " section 821.6 has primarily been applied to immunize prosecuting attorneys and other similar individuals, this section is not restricted to legally trained personnel but applies to all employees of a public entity. [Citation.]" [Citation.] Section 821.6"applies to police officers as well as public prosecutors since both are public employees within the meaning of the Government Code." ' " ( Strong , supra , 201 Cal.App.4th at p. 1461,
Strong is instructive. In Strong, a highway patrol officer, while investigating a traffic collision, either lost or destroyed the identifying information of *527one of the parties to the accident. The injured party sued the officer for negligence. ( Strong , supra , 201 Cal.App.4th at pp. 1444-1445,
Here, assuming the CHP owes Takihana any duty, it is difficult to see why this immunity would not apply to the CHP under the circumstances of this case. The CHP was conducting a legitimate law enforcement investigation when it seized the Cisitalia. While the seizure did not ultimately lead to the institution of criminal proceedings, that is not a necessary prerequisite to the application of the immunity. Further, as we now are ordering the CHP to return the car to petitioner, we have effectively absolved the CHP of responsibility for this outcome.
Finally, the CHP asserts that the interpleader action will provide petitioner with sufficient due process. However, again, it is undisputed that he was in possession of the Cisitalia when the CHP seized the car. It is also undisputed that he obtained possession of the car from Japan through a financial transaction. Under the rationale of Ensoniq, petitioner has an immediate right to possession of the car and the proposed interpleader action would merely serve to further deprive him of his right. The CHP essentially admits it cannot affirmatively demonstrate that the car was stolen or embezzled. Accordingly, it has no alternative but to return it to petitioner under the principles of due process set forth in Ensoniq .
*407DISPOSITION
Let a peremptory writ of mandate issue directing respondent superior court to (1) vacate its order of September 29, 2017, and (2) enter a new and *528different order granting the writ and returning actual possession of the seized Cisitalia to petitioner.
We concur:
Humes, P. J.
Banke, J.
It appears that Takihana claims to own a 1946 Cisitalia as well as the 1947 model that is at issue in this case. The former car is not a subject of this litigation.
On January 24, 2018, we asked the parties to brief whether petitioner had a speedy and adequate remedy by filing a claim and delivery action. We received letter briefs and have determined that writ proceedings are appropriate under the particular circumstances of this case.
Penal Code section 1536 provides: "All property or things taken on a warrant must be retained by the officer in his custody, subject to the order of the court to which he is required to return the proceedings before him, or of any other court in which the offense in respect to which the property or things taken is triable."
Penal Code section 1539, subdivision (a) provides: "If a special hearing is held in a felony case pursuant to Section 1538.5, or if the grounds on which the warrant was issued are controverted and a motion to return property is made (i) by a defendant on grounds not covered by Section 1538.5, (ii) by a defendant whose property has not been offered or will not be offered as evidence against the defendant, or (iii) by a person who is not a defendant in a criminal action at the time the hearing is held, the judge or magistrate shall proceed to take testimony in relation thereto, and the testimony of each witness shall be reduced to writing and authenticated by a shorthand reporter in the manner prescribed in Section 869."
Penal Code section 1540 provides: "If it appears that the property taken is not the same as that described in the warrant, or that there is no probable cause for believing the existence of the grounds on which the warrant was issued, the magistrate must cause it to be restored to the person from whom it was taken."
Penal Code section 1407 provides: "When property, alleged to have been stolen or embezzled, comes into the custody of a peace officer, he shall hold it subject to the provisions of this chapter relating to the disposal thereof."
Penal Code section 1411, subdivision (a) provides, in part: "If the ownership of the property stolen or embezzled and the address of the owner ... can be reasonably ascertained, the peace officer who took custody of the property shall notify the owner ... by letter of the location of the property and the method by which the owner may obtain it. This notice shall be given upon the conviction of a person for an offense involving the theft, embezzlement, or possession of the property, or if a conviction was not obtained, upon the making of a decision by the district attorney not to file the case or upon the termination of the proceedings in the case."
The CHP admits the car was in petitioner's possession when its officers seized it.
Under Code of Civil Procedure 1085, a writ of mandate issues to compel performance of a clear, present, and ministerial duty that is prescribed by law, or where there is an abuse of discretion. (Code Civ. Proc., § 1085 ; Carrancho v. California Air Resources Board (2003)
Government Code section 815.2, subdivision (b) provides: "Except as otherwise provided by statute, a public entity is not liable for an injury resulting from an act or omission of an employee of the public entity where the employee is immune from liability."
The CHP asserts it had no obligation to present evidence in the trial court because he had initiated the mandate action by service of summons, which gave the CHP 30 days to respond. We note the CHP has not offered any evidence in this court in response to our order to show cause.
Petitioner also contends that supplementary writs of prohibition and/or certiorari are necessary to undo the CHP's and trial court's errors. Specifically, he asserts the interpleader should be halted, and requests that we issue a writ of prohibition directing that the interpleader procedure be stayed or dismissed, citing to Code of Civil Procedure section 1102. Also, to the extent the court's approval of the interpleader filing has transferred control over the car to the trial court, he asserts we should issue a writ of certiorari directing that control be returned to the CHP. (Code Civ. Proc., § 1068.) We conclude our disposition as stated is sufficient.
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