Lead Opinion
In this controversy over the establishment and operation of a special improvement district, a hearing was granted by this court, after decision by the Court of Appeal, First Appellate District, Division Four, for the purpose of giving further study to the problems presented. After such study we have concluded that the opinion of the Court of Appeal, prepared by Justice Christian, correctly treats and disposes of the issues involved, and with certain further comments pertinent to contentions urged, it is adopted as and for the opinion of this court. Such opinion (with appropriate deletions and additions as indicated) is as follows :
Plaintiff Walter S. Cooper appeals from judgments of dismissal
The district was established by special act [Estero Act] of the Legislature. (Stats. 1961, First Ex. Sess. 1960, ch. 82, p. 459.) The act prescribed the boundaries,’ organization and powers of the district, as well as methods for its operation, management, financing, change of boundaries, and dissolution. Provision is made in section 121 of the act for an in rem proceeding to establish the validity of “the creation of the district and any annexations thereto” or to determine its right to issue bonds.
A judgment purporting to establish the constitutionality of the act creating the district and the validity of the district’s ' bonds was rendered in an uncontested in rem proceeding,.in the Superior Court of San Mateo County on July 20, 1961.
The statute recited that “The land in the district is not ' owned by residents. The owners are the ones primarily concerned with the district and the ones who will be supporting the district. The owners should therefore hold the voting power.” (§ 215, subd. (f).) Thus it was provided that voting was to be upon the basis of assessed valuation of land [ ] [§§17, 19, 20, 64], and that the district was to be governed by three directors (§26) who must be “owners, or officers or legal representatives of owners” (§28). The statute places a broad array of municipal functions within the powers of the district, including provision of street lighting, sewerage, storm drainage, garbage service, water service, parks and playgrounds, and reclamation of [ ] land (§77). The district is also empowered to construct small craft harbors (§78), provide fire protection (§79), and “make and enforce all necessary and proper regulations, not in conflict with the laws of this State, for the . . . supplying of . . . police protection service. A violation of a regulation of the district is' a misdemeanor punishable as such.” (§97.) The statute includes elaborate financial provisions, including authorization for the directors to issue general obligation bonds (§§ 105-123) and other types of securities to raise money for development of the raw land included within the district so that the owners thereof, who absolutely control the operations .of the district,
Appellant’s complaint, alleging four causes of action upon various theories, was amended twice before a general demurrer was sustained without leave to amend. Because the four causes of action contain overlapping allegations, and the dismissal was upon a general rather than a special demurrer, we shall analyze as a whole all of the factual allegations of the complaint to determine (1) whether any cause of action was stated, and (2) whether the trial court committed an abuse of discretion in cutting off further amendment.
There is no allegation that the formation and operation of the district failed to conform to the provisions of the Estero Act; rather it is charged that the act itself is void in that it purports to create a corporation for municipal purposes by special act of the Legislature in violation of article XI, section-6, of the California Constitution.
Respondents contend that Code of Civil Procedure section 803 precludes appellant from contesting the validity of proceedings leading to the formation of the district. Section 803 provides :
“An action may be brought by the attorney-general, in the name of the people of this state, upon his own information, or upon a complaint of a private party, against any person who usurps, intrudes into, or unlawfully holds or exercises any public office, civil or military, or any franchise, or against any corporation, either de jure or de facto, which usurps, intrudes into, or unlawfully holds or exercises any franchise, within this state. And the attorney general must bring the action, whenever he has reason to believe that any such office or franchise has been usurped, intruded into, or unlawfully held or exercised by any person, or when he is directed to do so by the governor. ’ ’
In San Ysidro Irr. Dist. v. Superior Court (1961)
In City of San Diego v. Otay Municipal Water Dist. (1962)
Appellant contends that quo warranto is not the exclusive remedy here because the Estero district is neither de facto nor de jure a corporation, citing Brandenstein v. Hoke (1894)
Appellant advances a subsidiary contention that he ought to be allowed to attack the constitutionality of the Estero Act because, in one of the causes of action, he seeks a judicial declaration that the statute is unconstitutional. But in San Ysidro Irr. Dist. v. Superior Court, supra,
The complaint alleges that $30,000,000 of the district’s funds was “spent to improve and make saleable the real property of [the Poster defendants] under the claim that said expenditure is authorized as reclamation. . . .’’In his capacity as a district taxpayer appellant prayed for a judgment requiring restoration of that amount to the district. Appellant contends here that the district is not empowered to fill dry land. It is true that section 77 of the act, authorizing
The complaint then sets forth miscellaneous general allegations hinting at sinister activities on the part of certain of the respondents:
(a) It is alleged that the Foster respondents “have secured for themselves the power to control and administer the bookkeeping of said district for a compensation. ...”
(b) It is alleged that the Foster respondents have, by virtue of their control and domination of the district, “obtained great private monetary advantage. ...”
(e) It is alleged that Innes, a Foster employee and a director of the district, caused the Associated Dredging Company to submit statements to the district pursuant to which [ ] [22] district checks totaling $860,218.05 were issued and delivered to Associated with the understanding that they would be,
None of these recitals states a cause of action. There is no allegation that there was anything unlawful about the manner of contracting for bookkeeping services for the district ; neither is any showing of illegality alleged with regard to the payments to Associated Dredging and Midwest Dredging. It is possible that appellant intended to allege fraudulent misappropriations of district funds, but fraud is never presumed—facts constituting fraud must be specifically pleaded. (Gautier v. General Tel. Co. (1965)
Generally it is an abuse of discretion to sustain a demurrer without leave to amend if there is any reasonable possibility that the defect can be cured by amendment. (Temescal Water Co. v. Department of Public Works (1955)
Appellant also contends that reversal is required by the recent holding of the United States Supreme Court in Avery v. Midland County (1968)
[It appears that at the time the district was created by the Legislature in 1960 it comprised some 418 uninhabited acres under a single ownership, that thereafter it annexed adjacent territory (§205) so that it now totals some 2,600 acres, and that as improvement and development have proceeded the district has acquired residents. The statute declares the desirability that upon creation of the district the owners hold the voting power, as they were the persons primarily concerned with the district and who would be supporting it. (§ 215.)
At oral argument [before the Court of Appeal, when this cause was pending before that court] appellant moved, pursuant to rule 23, subdivision (b), California Rules of Court, for an “Order Directing Taking of Evidence on Appeal” to assist [ ] [the] court in determining whether the superior court correctly ordered the amended complaint dismissed as sham
The judgments are affirmed; the motion to take evidence is denied.
Traynor, C. J., McComb, J., and Tobriner, J., concurred.
Notes
Brackets together, in. this manner [], are used to indicate deletions from the opinion of the Court of Appeal; brackets enclosing material (other than editor’s added parallel citations) are, unless otherwise indicated, used to denote insertions or additions by this court. We thus avoid the extension of quotation marks within quotation marks which would be incident to the use of such conventional punctuation, and at the same time accurately indicate the matter quoted. (Simmons v. Civil Service Emp. Ins. Co. (1962)
Two judgments were entered on separate dates as to two groups of defendants. Plaintiff appeals from both judgments; the issues are identical and the appeals have been consolidated.
After the dismissal of this action the act was amended [§§26, 28], to enlarge the board of directors to five members, of which two represent landowners, two represent residents, and one is a “public member^ appointed by the county board of supervisors. After 1969, the “public
Article XI, section 6: ‘1 Corporations for municipal purposes shall not be created by special laws; but the Legislature shall, by general laws, provide for the incorporation, organization, and classification, in proportion to .population, of cities and- towns, ...”
5 Section 215 of the statute further declares, among other things, the purpose of enabling improvement of the area; that the area was without sewage facilities, adequate water supply, or small craft harbor facilities, all of which it urgently needed; that the area is of strategic importance during times of war or threatened war, and that influx of military men
The Foster respondents and some of the other respondents moved to strike the complaint as amended, on the ground that it was ‘ ‘ sham, vexatious, scandalous, abusive, disrespectful, frivolous,” etc. The order granting the motion to strike was concurrent with the order sustaining the demurrer. The judgment of dismissal is adequately supported by the ruling upon the demurrer; therefore we have not considered the propriety of the motion to strike.
Concurrence Opinion
I concur in part and dissent in part. On the basis of the complaints in these proceedings and in the companion' ease, there arise suspicions that all is not well with the management of the Estero community. But suspicions, however strong, are inadequate for pleading purposes. Thus I concur in much of the majority opinion.
Many of the problems giving rise to plaintiff’s dissatisfac
Therefore I dissent from that portion of the majority opinion which holds that because “the transfer of control from owners to resident voters will be completely accomplished by 1971 no occasion is shown for interference by this court with the programming spelled out by the Legislature. ’ ’
In my view, the Estero Act, as it presently exists, unquestionably violates the precepts laid down in Avery v. Midland County (1968)
In Avery the Supreme Court held that the one-man one-vote principle enunciated in Reynolds v. Sims (1964)
The local governing body in Avery had the “power to make a large number of decisions having a broad range of impacts on all the citizens of the county” and to make “long-term judgments” affecting the future development and the present needs of the county. The opinion states, “Were the Commissioners Court a special purpose unit of
In California we have applied the one-man, one-vote principle of Reynolds v. Sims (1964) supra,
While the present case does not involve the problem of malapportionment of elective districts but discrimination between voters who own and those who do not own real property within the district, as well as between small and large landowners, it is inescapable from the holding of Avery that if the district’s board may exercise general governmental powers over the residents of the district, the voters therein must be accorded equal voting rights on a one-man, one-vote basis, without regard to whether or not they own property within the district or the amount thereof. (See Thompson v. Board of Directors (1967)
An analysis of the terms of the Estero Act establishes that the district is not a “special purpose unit of government assigned the performance of functions affecting definable groups of constituents more than other constituents. ’ ’ Indeed it is difficult to contemplate a broader spectrum of general governmental functions than those bestowed upon the Estero community.The district is empowered to acquire, construct and maintain facilities for street lighting, collection and disposal of sewage, production and distribution of water, parks, playgrounds and drainage works, and may reclaim submerged or other land by watering or dewatering (Estero Act, §77). It may acquire or construct a private small craft harbor and utilities useful to its operation (§78). It may also operate
The governing board has very broad financial powers. It may borrow money (§85), issue general obligation bonds (§105 et seq.) and revenue bonds (§135), and cause special assessments to be levied and issue bonds to represent unpaid assessments (§93). Taxes to pay the principal and interest on the bonds and to defray expenses incidental to the district’s powers are levied, under the act, on the real and personal property in the district (§ 160 et seq.).
This comprehensive range of authority is in some respects more embracive than that accorded the Commissioners Court in Avery and most, if not all, of the powers affect all residents of the district alike, without regard to the amount, if any, of real property they own in the district. Under these circumstances there seems little doubt that plaintiff and other residents of the district are deprived of equal protection of the laws by the requirement that a certain number of members of the governing board be elected only by landowners and that voting power among landowners should be divided according to assessed valuation. As stated in Harper v. Virginia Board of Elections (1965)
The majority holds that even if present methods of voting are of dubious validity, the Legislature has provided for the gradual transfer of control of the district to the residents by elections to be held in November 1971, and we are not justified in tampering with this scheme.
Here we are presented with a much stronger case for immediate implementation of the voting rights of citizens than in either Silver or Miller, for, by contrast, no new reapportionment plan need be designed. The Legislature itself has passed a complete scheme to effectuate the voting rights of the district’s residents down to the details regarding the manner in which both regular and special elections should be conducted, but has provided that the statute, passed in 1967, should not be fully implemented until the elections to be held in Novem
The flaw in the program, unanswered by the majority, is the lack of justification for waiting until November 1971, if there are a substantial number of resident voters long before that date. The uncontroverted fact is that there are now more than 8,000 persons residing in the district and the steady influx indicates there will be many more prior to the time an election is held in November 1971. No one can deny that there are a substantial number of registered voters among the residents. It seems hardly necessary to note parenthetically that if the legislative bodies involved in the Silver and Miller eases had passed valid reapportionment measures but had delayed their effectiveness for four years because it was their judgmen't'that the equal voting rights of citizens should be implemented gradually, this court would not have countenanced such a dilatory arrangement.
Indeed, a recent case involved just that situation. In Petuskey v. Rampton (1965)
Silver and Miller are not the only cases which have recognized the urgency of prompt action in order to assure that voters are not deprived of their rights one day longer than necessary. Reynolds v. Sims (1964) supra,
■ In the present case no obstacles to the immediate conduct of elections on a one-man, one-vote basis exist, and only the statutory postponement of the exercise of those rights until 1971 impedes implementation. This action was filed in 1966, before the Legislature had made any provisions for elected representation of nonlandowners on the board. Three years have elapsed since that time and almost three more years will pass before the composition of the board complies with constitutional mandates. To wholly or partially deprive more than 8,000 residents of their constitutional right to an equal vote is unjust. That the injustice is to be cured in the future makes it no less unjust today.
Peters, J., and Sullivan, J., concurred.
Appellant’s petition for a rehearing was denied April 17, 1969,' and the opinion was modified to read as printed above. Peters, J., Mosk, J., and Sullivan, J., were of the opinion that the petition should be' granted.
This is somewhat reminiscent of the noblesse oblige evidenced by the court in People v. Sacramento Drainage Dist. (1909)
This injunction is qualified by the further statement that “in award-
