Southern California Jockey Club, Inc. v. California Horse Racing Board
Southern California Jockey Club, Inc. v. California Horse Racing Board
Opinion of the Court
Proceeding under section 19480.5 of the Business and Professions Code, plaintiff applied to the California Horse Racing Board for a determination that the purposes of the horse racing law (Bus. & Prof. Code, §§ 19420 et seq.) and public interest would be served by the construction by it of a track for horse race meetings at Puente, Los Angeles County, California. The application was denied, and plaintiff thereupon presented a petition for a writ of mandate to the superior court to compel the board to issue a license to it for such purpose, and that court agreed with the board. Plaintiff now asserts that the licensing provisions of the horse racing law are invalid in that they constitute an unlawful delegation of legislative power to the board without adequate standards (Cal. Const., arts. III and IV, § 1); that improper evidence was admitted before the board; that the evidence was insufficient to sustain its determination or that of the superior court; and that the board acted irregularly.
Section 19480.5 under which plaintiff made its application provides: “The board shall not issue a license to conduct a horse racing meeting at any place, inclosure, or track, not used for horse racing meetings prior to July 1, 1941, unless prior to the beginning of the construction or preparation of such place, inclosure, or track for horse racing meetings, the board, upon application in such form as it may require, has determined that conducting horse racing meetings at such place will be in the public interest and will subserve the pur
The horse racing board is in a different category than other administrative or executive agencies with respect to the delegation of legislative power to it. A horse racing act was passed by the Legislature in 1933 (Stats. 1933, pp. 1127, 2046), wherein it was provided that it should be effective “upon the adoption of a constitutional amendment ratifying its provisions.” (Id., §19.) In June, 1933, a constitutional amendment was adopted which provides: “The Legislature may provide for the regulation of horse races and horse race meetings and wagering on the results thereof. The provisions of an act entitled ‘An act to provide for the regulation and licensing of horse racing, horse race meetings, and the wagering on the results thereof; to create the California Horse Racing Board for the regulation, licensing and supervision of said horse racing and wagering thereon; to provide penalties for the violation of the provisions of this act, and to provide that this act shall take effect upon the adoption of a constitutional amendment ratifying its provisions, ’ are hereby confirmed, ratified, and declared tobe fully and completely effective ; provided, that said act may at any time be amended or repealed by the Legislature.” [Emphasis added.] (Cal. Const., art. IV, § 25a.) In Sandstrom v. California Horse Racing Board, 31 Cal.2d 401 [189 P.2d 17, 3 A.L.R.2d 90], this court considered the power of the board to revoke or suspend the license of a horse trainer licensed under the horse racing law. In that case petitioner’s license had been suspended for a violation of a rule adopted by the board, and one of the contentions of petitioner was that “insofar as that rule is based on the statutory grant of power to the board to prescribe rules, regulations and conditions under which horse racing is conducted ... it is an unconstitutional delegation
Plaintiff argues, however, that the 1933 statute did not give such broad powers to the board as are given by the present provisions of the Business and Professions Code. With that we cannot agree. The 1933 act, like the present one, prohibits the conduct of horse race meetings where wagering is permitted" without obtaining a license. (Stats. 1933, p. 1127, § 1; Bus. & Prof. Code, § 19560.) There is separate provision for licensing owners, riders, trainers, etc. (as distinguished from track operators or conductors of meetings) and such licenses “shall be subject to revocation and no person shall be eligible to, or permitted to participate in such racing "unless so licensed, and only during the time such license remains unrevoked. No qualified person shall be refused such license, nor shall such license be revoked without just cause.” (Stats. 1933, p. 1127, § 3, second paragraph.) Thus, those provisions are not here applicable as we are dealing with licenses for race meetings and places of meetings. It is next provided with regard to a license of the character here involved, that:
“All licenses provided to be granted under the provisions of this act, including those granted pursuant to the provisions of section 3 hereof, shall be subject to all rules, regulations and conditions from time to time prescribed by the board and shall contain such conditions as shall be deemed by said board necessary or desirable for the purposes of this act.
“Such license shall be subject to suspension or revocation by the board in any case where the board shall have reason to believe that any condition of its license has not been complied with or any law or any rule or regulation of such board shall have been broken or violated. . . .” [Emphasis added.] (Stats, 1933, p. 1127, § 9.) Plainly, the first paragraph above quoted refers to the mere mechanical issuance of the license certificate after the award has been made, that is, after there has been a determination that the applicant is entitled to a license. Naturally such terms are mandatory for nothing is left to do following such a finding except the ministerial act of issuing the license. Moreover, the words “as herein provided” refer to an “award” as provided in the act. Hence that section (9) does not apply to the situation here involved which concerns the making of a determination or an award that an applicant should or should not have a license. This is further demonstrated when we turn to section 11 of the 1933 act which contains provisions similar to section 19480 of the Business & Professions Code, supra, and here pertinent. Section 11 reads: “Upon the filing of an application, in writing, for a license, as herein provided, if the same should be in accordance with this act, and upon the payment of the license fee hereinafter provided for, it shall be within the power of the board to issue a license to the applicant to conduct a horse race meeting in accordance with the provisions of the act at the place, enclosure or track specified in the application; and in counties of the first and second classes, as hereinabove defined, no license shall be granted to conduct a horse race meeting upon a track less than one mile in circumference and/or length, except that the board may in its discretion grant licenses to county fairs and to rodeos to conduct horse race
The board found, pursuant to section 19480.5 of the Business and Professions Code, that applicant (plaintiff) had failed to show that the conduct of horse race meetings at Puente would be in the public interest and subserve the purpose of the horse racing law. The trial court decided the case upon the record made before the board and found that its finding was supported by “substantial evidence.” Plaintiff challenges these findings.
Plaintiff asserts that the trial court did not weigh the evidence; that, therefore, this court must weigh the evidence
"The question here is whether the commissioner abused his discretion in denying the permit to the petitioners. Such abuse of discretion would appear if he acted arbitrarily, capriciously, or fraudulently. No claim can properly be made that he acted capriciously or fraudulently. And he acted
“The testimony before the commissioner was voluminous and highly conflicting . . .
“Unquestionably the testimony before the commissioner would sustain a conclusion either way upon the issue of the good moral character and fitness of the petitioners to engage in the bail bond business in San Francisco. If the trial had been before a court the evidence was sufficient to support findings either way or was sufficient to support a verdict either way on the issue. With this state of the record our inquiry on this phase of the case is at an end, for it cannot be said that there was not a sufficient factual basis for the conclusion of the commissioner and therefore he did not act arbitrarily or otherwise abuse his discretionary power in denying the permit.” Those views have been consistently approved. (See Dierssen v. Civil Service Commission, 43 Cal.App.2d 53, 60 [110 P.2d 513]; Newport v. Caminetti, 56 Cal.App.2d 557 [132 P.2d 897]; Wallace v. Board of Education, 63 Cal.App.2d 611 [147 P.2d 8]; Housman v. Board of Medical Examiners, 84 Cal.App.2d 308 [190 P.2d 653]; McDonough v. Garrison, 68 Cal.App.2d 318 [156 P.2d 983]; Glick v. Scudder, 69 Cal.App.2d 717 [160 P.2d 90].) And the rule was not changed by statute as is evident from the wording of section 10945 of the Code of Civil Procedure. We therefore hold, that in a case such as this, the trial court should not reweigh the evidence, and its sole function is, to determine from a review of the record, whether there is sufficient evidence to sustain the ruling of the board. If the trial court should hold the evidence insufficient, and this holding is attacked on appeal, the court to which the appeal is taken must review the record and determine the sufficiency of the evidence. If the evidence is found to be sufficient, the ruling of the board must be sustained.
Plaintiff "urges that there is not sufficient evidence to support the finding of the board against it; that “improper” evidence was received by the board; and that competent evidence offered by plaintiff was rejected.
Dealing first with the last mentioned contention, plaintiff claims that “improper” evidence was admitted before the board and a transcript of it was submitted to the court, that is, evidence by Santa Anita and Hollywood race tracks n Los Angeles County, that they would suffer an “economic
Furthermore, since the proceeding in the trial court must be considered as only a hearing where the record before the board is examined for the purpose of determining the sufficiency of the evidence, rather than a limited trial de novo (see McDonough v. Goodcell and discussion supra), then the applicable rule is, that the admission of irrelevant or incompetent evidence by the board is not ground to annul its action if there is sufficient competent evidence to support its determination. (See Maryland Casualty Co. v. Industrial Acc. Com., 178 Cal. 491 [173 P. 993]; Mesmer & Rice v. Industrial Acc. Com., 178 Cal. 466 [173 P. 1099]; Mary Len Mine v. Industrial Acc. Com., 64 Cal.App.2d 153 [148 P.2d 106]; Tagg Bros. & Moorhead v. United States, 280 U.S. 420 [50 S.Ct. 220, 74 L.Ed. 524].)
There is ample evidence to support the determinate
Plaintiff argues that the board and trial court failed to apply the standard established by section 19480.5, asserting that the words “public interest” used therein related only to the purposes to be served by the horse racing law. Be that as it may, the finding of the board was in the language of the statute. It reads: "That the applicant has failed to show
Finally, it is urged that the board acted irregularly in reaching its decision in that one of the board members telephoned his vote to a meeting of the board at which the two other members were present, one of whom dissented. Assuming that there must have been present at a meeting at which the matter was decided by the board, the members necessary to make a decision by a majority of the board, from all that appears, such was done. The meeting at which only two members were present was on September 17, 1948. The written decision of the board, dated September 21, 1948, recites: “The Matter of the Application of.the Southern California Jockey Club, Inc., came on for hearing; evidence was introduced by the applicant and the objectors; the matter was briefed by said applicant and objectors and by the Board submitted.
“It is now held as follows:
"That the applicant has failed to show that the conducting of horse racing meetings at the proposed Puente track would be in the public interest and would subserve the purposes of the California Horse Racing Act and that therefore said application is hereby denied.” It is signed by two members of the board, and the third member’s dissent was filed with it.
The judgment is affirmed.
Gibson, C. J., Shenk, J., and Schauer, J., concurred. Spence, J., concurred in the judgment.
Dissenting Opinion
The trial court found that the determination of the board was supported by “substantial evidence and by the weight of the evidence.” The majority opinion herein affirms the decision of the trial court on the ground that there was substantial evidence to support the determinations of the board and of the trial court. It holds that if plaintiff was entitled to a finding by the trial court that the board’s decision was or was not supported by the weight of the evidence, this court discharges its duty to review that decision by
The majority opinion seeks to explain its abandonment of the rule of these cases by establishing a distinction between cases such as this, in which the action reviewed consists of the denial of a license or permit, and cases in which the action reviewed consists of the revocation or suspension of a previously granted license. Notwithstanding that in either instance the result of the administrative action is to deprive the petitioner of the opportunity to carry on a lawful business, profession, or occupation, the majority opinion approves the doctrine of McDonough v. Goodcell, 13 Cal.2d 741, 752-753 [91 P.2d 1035, 123 A.L.R. 1205], that there is a sufficient practical difference between the two types of action to merit the application of divergent theories of judicial review. It is held that if the agency revokes a license upon a specific finding of fact, the action must be reversed by the reviewing court if the finding is not supported by the weight of the evidence, but if on an identical finding it merely denies a license or permit, its action may be reversed only if there is no substantial evidence to support it.
The application of the present decision to the Horse Racing Act demonstrates the wisdom of that prophecy. “All persons participating in or having to do with the racing of horses” must obtain licenses from the board. (Bus. & Prof. Code, § 19510.) Such licenses are valid only for the calendar year for which they are issued and new licenses must be secured annually. (Bus. & Prof. Code, § 19511.) Licenses may be refused or revoked only for just cause. (Bus. & Prof. Code, § 19513.) Assume that during the calendar year the board after notice and hearing finds that there is just cause for the revocation of the license of a horse owner, rider, or trainer, and orders his license revoked. He petitions for writ of mandate and the trial court grants the peremptory writ for the reason that the board’s finding, although supported by substantial evidence, is not supported by the weight of the evidence. Thereafter, petitioner applies at the close of the calendar year for his license, but the board upon the same evidence and upon the same finding upon which its previous action was predicated, refuses to issue the license. The peremptory writ must now be denied for the reason that the finding is supported by substantial evidence. Thus, although the same finding is made in each case upon the same evidence under the same statute and “the result in each instance is to eject a person from a business in which he has engaged for a number of year,” the majority opinion apparently finds no inconsistency' between the types of review that it prescribes.
The present case is the first since McDonough v. Goodcell in which this court has approved the doctrine of that case.
The doctrine of McDonough v. Goodcell cannot be reconciled with the rationale of the Dare and Moran cases upon which it is purportedly based. In Standard Oil Co. v. State Board in announcing its departure from the heretofore prevailing of Equalization, 6 Cal.2d 557, 559 [59 P.2d 119], this court rule (see Sudeow v. Alderson, 182 Cal. 247 [187 P. 965]) that certiorari will lie to review the decisions of a state-wide administrative agency stated: “Concisely stated, our conclusion that we are without authority or jurisdiction to entertain this proceeding or to issue the writ here sought, is based upon the established premises that a writ of certiorari . . . will lie only to review the exercise of judicial functions (sec. 1068, Code Civ. Proc.) and that the legislature is without power ... to confer judicial functions upon a state-wide agency” under article VI, section 1 of the California Constitution. Subsequent cases have expanded the doctrine of the Standard Oil Company ease into the following syllogism: Judicial functions cannot constitutionally be delegated to
Given this reasoning as the basis of the foregoing decisions, it is difficult to justify the distinction established by McDonough v. Goodcell and the majority opinion herein. If finality cannot be accorded the findings of fact of an administrative agency because the function of making such findings is exclusively judicial, is the function any less judicial because the petitioner attacking the findings does not already have a license 1 Insurance Code, section 1805, provides that the insurance commissioner may refuse to issue a bail license upon any of eight specified findings. Section 1807 provides that he may suspend or revoke a bail license for any cause for which he could refuse to issue a license. If he were to make a finding of fact under section 1807, does the California Constitution prohibit this court from according finality to that finding but permit the same finding to be made final under section 18051 If there can be no administrative finality under the California Constitution, as the majority of this court holds, then the prohibition should apply whether the petitioner seeks to secure a license or to retain it. If, on the other hand, the administrative findings of fact may constitutionally be made final in license denial cases, they may constitutionally be made final in license revocation cases. Manifestly, the doctrine of McDonough v. Goodcell is at odds with the principles of judicial review announced by the majority of this court in the Dare and Moran cases. If the majority opinion herein is to be consistent with those principles, it should overrule McDonough v. Goodcell. Otherwise, the Moran, Dare, Laisne, Drummey and Standard Oil Co. cases must be overruled.
It is contended, however, that this court is foreclosed from the reexamination of its error by virtue of the legislative adoption of the rule of the Dare and Laisne cases in the enactment of section 1094.5 of the Code of Civil Procedure. I can find no such legislative intention in the statute, which provides merely that “Where it is claimed that the findings are not supported by the evidence, in cases in which the court is authorized by law to exercise its independent judgment on the evidence, abuse of discretion is established if the court determines that the findings are not supported by the weight of the evidence; and in all other cases abuse of discretion is established if the court determines that the findings are not supported by substantial evidence in the light of the whole record.” (Italics added.) The Legislature, how'ever, did not prescribe the cases in which the court is authorized by law to exercise its independent judgment on the evidence. Indeed, under the decisions of this court, it could not for the reason that the decisions from Standard Oil to Dare speeifi
Edmonds, J., concurred.
Reference
- Full Case Name
- SOUTHERN CALIFORNIA JOCKEY CLUB, INC. (A Corporation), Appellant, v. CALIFORNIA HORSE RACING BOARD Et Al., Respondents
- Cited By
- 93 cases
- Status
- Published