Lead Opinion
Opinion
J. — Helene Frink petitioned for writ of mandate to vacate an administrative decision denying benefits under the aid to the totally disabled program (ATD). The superior court judgment states that while “the weight of the evidence was in petitioner’s favor, there was substantial evidence in the administrative record to support the respondent’s decision.” Relief was denied. On this appeal, petitioner contends that the trial court should have exercised its independent judgment on the evidence rather than apply the substantial evidence rule.
Petitioner’s application for benefits was denied in April 1973. She sought a hearing. At the time of the hearing, she was a 5 3-year-old married woman residing with her husband. She claimed that she was totally and permanently disabled based on back, leg, heart, hand, and psychological impairments. There was evidence that her conditions were not disabling and that they were not permanent. There was also con
In her points and authorities in support of the petition for writ of mandate, petitioner conceded that the substantial evidence test was applicable. The trial judge recognized that the authorities had established that the substantial evidence test was the proper standard of review but stated that he believed that, should this court reconsider, we would find independent judgment was the proper standard. He concluded that, while the weight of the evidence was contrary to the administrative decision, the decision was supported by substantial evidence.
Standing
Preliminarily, it is urged that petitioner may not raise the issue of appropriate standard of review because she conceded that the substantial evidence rule was applicable at trial. Ordinarily, a party may not change the theory of his case for the first time on appeal. (Panopulous v. Maderis (1956)
In the instant case, appellate rulings, as we shall see, required application of the substantial evidence rule, and the trial court would have exceeded its jurisdiction had it refused to follow the controlling authorities. (Auto Equity Sales, Inc. v. Superior Court (1962)
Contentions
In administrative mandamus actions to review decisions terminating welfare assistance, the trial court exercises its independent judgment on the evidence. (Harlow v. Carleson (1976)
Petitioner attacks both bases for application of the substantial evidence rule, claiming that section 10962 does not command substantial evidence review and that recent decisions do not require a vested right as a condition to independent judgment review.
Welfare and Institutions Code section 10962 provides: “The applicant or recipient or the affected county, within one year after receiving notice of the director’s final decision, may file a petition with the superior court, under the provisions of Section 1094.5 of the Code of Civil Procedure, praying for a review of the entire proceedings in the matter, upon questions of law involved in the case. Such review, if granted, shall be the exclusive remedy available to the applicant or recipient or county for review of the director’s decision.” (Italics added.)
Code of Civil Procedure section 1094.5 provides: “(a) Where the writ is issued for the purpose of inquiring into the validity of any final administrative order or decision made as the result of a proceeding in which by law a hearing is required to be given, evidence is required to be taken and discretion in the determination of facts is vested in the inferior tribunal, corporation, board or officer, the case shall be heard by the court sitting without a jury....
“(b) The inquiry in such a case shall extend to the questions whether the respondent has proceeded without, or in excess of jurisdiction; whether there was a fair trial; and whether there was any prejudicial abuse of discretion. Abuse of discretion is established if the respondent has not proceeded in the manner required by law, the order or decision is not supported by the findings, or the findings are not supported by the evidence.
“(c) 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.)
Prior to Tex-Cal Land Management, Inc. v. Agricultural Labor Relations Bd. (1979)
While the Legislature could properly provide for substantial evidence review of administrative determinations denying welfare benefits, it has not done so. The statute involved in Tex-Cal, Labor Code section 1160.8, provides: “The findings of the board with respect to questions of fact if supported by substantial evidence on the record considered as a whole shall in like manner be conclusive.”
By way of contrast, Welfare and Institutions Code section 10962 does not specify substantial evidence review. Rather, it provides for review under the provisions of Code of Civil Procedure section 1094.5 “of the entire proceedings in the matter, upon questions of law involved in the case.” Section 1094.5 was designed to leave to the courts the establishment of standards for deciding which cases require independent judgment review and which substantial evidence review. (Tex-Cal Land Management, Inc. v, Agricultural Labor Relations Bd., supra,
The reference in section 10962 to review “upon questions of law” also fails to constitute legislative direction to apply substantial evidence review. Necessarily, review upon “questions of law” includes review of sufficiency of evidence, and the quoted term does not purport to distinguish between standards of review in determining sufficiency. Section 10962 provides for review not only on petitions by applicants but also
Rather, section 10962 should be read as leaving to the courts the determination of the proper standard of review. Under section 1094.5, subdivision (b), the inquiry extends to whether the administrative agency has proceeded without or in excess of jurisdiction, whether there was a fair trial and whether there was prejudicial abuse of discretion. The term “upon questions of law” in section 10962 should be interpreted as commensurate with that inquiry, and when this is done, it is apparent that in accordance with section 1094.5, subdivision (c), it is for the courts to establish the appropriate standard of review in determining whether there has been an abuse of discretion.
Judicial Determination of Standard of Review
Section 1094.5, subdivision (c) provides that the court shall weigh the evidence when “authorizedi by law to exercise its independent judgment” and in all other cases shall determine whether the findings are supported by substantial evidence. As pointed out above, the section was designed to leave to the courts the establishment of standards to determine which cases require independent judgment review. (Tex-Cal Land Management, Inc. v. Agricultural Labor Relations Bd., supra,
In Bixby v. Pierno, supra, 4 Cal. 3d 130, 144-146, it was concluded that the “courts must decide on a case-by-case basis whether an administrative decision or class of decisions substantially affects fundamental vested rights and thus requires independent judgment review.... In determining whether the right is fundamental the courts do not alone weigh the economic aspect of it, but the effect of it in human terms and the importance of it to the individual in the life situation. This approach finds its application in such an instance as the opportunity to continue the practice of one’s trade or profession
The court also pointed out that “in determining whether the right is sufficiently basic and fundamental to justify independent judgment review, the courts have considered the degree to which that right is ‘vested,’ that is, already possessed by the individual. (McDonough v. Goodcell, supra,
The court further explained the fundamental vested right test in Interstate Brands v. Unemployment Ins. Appeals Bd. (1980)
Footnote 5 reads: “The relationship between ‘vestedness’ in the traditional sense and ‘fundamentalness’ in the Bixby sense is illuminated by a little-noted passage of the opinion which states: ‘[I]n determining whether the right is sufficiently basic and fundamental to justify independent judgment review, the courts have considered the degree to which that right is “vested,” that is, already possessed by the individual.’ (
The court further pointed out: “Cases subsequent to Bixby have, of course, had occasion to apply the broadened standard there established in order to authorize independent judicial review in circumstances where it might well not have been available under former standards. (See, e.g., Anton v. San Antonio Community Hosp. (1977)
The court noted: “Our observation in Bixby that this court, ‘[i]n analyzing the fundamental nature of the right asserted, [has manifested] slighter sensitivity to the preservation of purely economic privileges’ (Bixby, supra, at p. 145) was a statement of historical fact, illustrated by the cases there cited. We have continued since Bixby, and will doubtless continue in the future, to remain especially responsive to the human as opposed to the purely economic dimension of rights affected by administrative action. This does not mean, however, that rights whose most visible dimension is the economic one will for that reason remain in all cases something less than ‘fundamental’ within the meaning of Bixby. (See Transcentury Properties, Inc. v. State of California (1974)
Bixby and Interstate Brands establish that for purposes of determining applicability of independent judgment review the terms fundamental and vested are not used to establish absolutes but are used in a relative sense, and they show that it is the weighing of both the fundamental nature and the vested nature of the right which determines whether independent judgment review is required. Thus, both cases explaining the term fundamental refer to the effect of the right in economic and human terms and to the importance of it to the individual. (
Weighing the importance and effect of the right and the degree to which it is possessed, it is apparent that the right of the needy disabled to public assistance is of such significance as to require independent judgment review. Harlow v. Carleson, supra,
The right of the needy applicant to welfare benefits is as fundamental as the right of a recipient to continued benefits. Because need is a condition of benefits, erroneous denial of aid in either case deprives the eligible person “‘of the very means for his survival and his situation becomes immediately desperate.’” (
The decisions subsequent to Bixby denying independent review to decisions on applications for welfare benefits were not based on the theory that there was no fundamental right but reasoned that the right of the applicant was not vested. (E.g., Repko v. Carleson, supra,
In cases not involving licensing, independent judgment review has not been limited to decisions terminating or revoking benefits but has been applied to decisions on applications for benefits. (E.g., Strumsky v. San Diego County Employees Retirement Assn. (1974)
Evaluating the degree to which the right is vested, it is apparent that the right to welfare benefits is not based on expertise, competence, learning, or purchase or ownership claim. Determination of qualification for public assistance does not involve the “delicate task” of evaluating competence to engage in a broad field of endeavor as is true in most licensing cases.
Rather, the qualification for public assistance primarily is based on need, the absence of income or other source of funds. The applicant for public assistance is seeking aid because of deterioration of his life situation in economic terms. Unlike the applicant for a license, he is not seeking advancement of his earlier life situation. The statutory public assistance programs provide protection to citizens who through economic adversity are in need and as such should be viewed as residual rights possessed by all of the citizenry to be exercised when circumstances require.
While the degree to which the right is vested may not be overwhelming, the degree of fundamentalness is. Weighing them together as required by Bixby and Interstate Brands, we conclude the independent judgment standard should be applied to decisions denying applications for welfare benefits. Insofar as inconsistent with the views expressed above, the cases of Tripp v. Swoap, supra,
Bird, C. J., and Tamura, J.,
Notes
The ATD statutes, former section 13500 of the Welfare and Institutions Code, were repealed effective December 5, 1973. (Stats. 1973, ch. 1216, § 55, p. 2923.) The petition for writ of mandate alleges that petitioner has been found disabled under the meaning of the Social Security Act. Although it does not appear from the record or briefs, she apparently has been receiving federal benefits and state supplementary benefits. (See Welf. & Inst. Code, § 1200 et seq.)
“See footnote 9, supra. ‘The right to practice one’s profession is sufficiently precious to surround it with a panoply of legal protection.’ (Yakov v. Board of Medical Examiners, supra,
In a dictum, the court in Standard Oil Co. v. Feldstein (1980)
Assigned by the Chairperson of the Judicial Council.
Dissenting Opinion
Dissenting. — In 1965, two decades after enactment of the California Administrative Procedure Act, the Legislature spoke as follows: “The applicant [in cases such as this], under the provisions of Section 1094.5 of the Code of Civil Procedure, [may seek] a review of the entire proceedings in the matter, upon questions of law involved in the case.” (Welf. & Inst. Code, § 10962; italics added.)
What was meant by the words “questions of law”? I infer that the drafters used them to express their view that, in these disability cases, a superior court was not “authorized by law to exercise its independent judgment on the evidence” (Code Civ. Proc., § 1094.5, subd. (c)). If instead the intent had been to delegate to judges the decision whether to (1) exercise independent judgment, or (2) search for substantial evidence, the draft simply would have read, “The applicant . . . , under the provisions of Section 1094.5 of the Code of Civil Procedure, [may seek] a review of the entire proceedings in the matter.” That bobtailed version would have justified the trial judge’s analysis here; it also would have, justified the contrary analysis favored in this court’s majority opinion.
The Legislature did not, however, say that judges could choose. Rather it added a clause that I think was intended to authorize judicial review “[only] upon questions of law involved in the case.” What are
Is there any authority, anywhere, suggesting that such a decision does not involve a question of fact? (Compare § 1094.5, subd. (a), which limits mandate to “a proceeding in which . . . evidence is required to be taken and discretion in the determination of facts is vested in the [agency].” (Italics added.) See too Bertch v. Social Welfare Dept. (1955)
Questions of law include “whether the respondent [the agency] has proceeded without, or in excess of jurisdiction; whether there was a fair trial . .. [whether] the respondent has not proceeded in the manner required by law, [and whether] the order or decision is not supported by the findings” (Code Civ. Proc., § 1094.5, subd. (b)).
What about the question whether “the findings are . . . supported by substantial evidence in the light of the whole record” (§ 1094.5, subd. (c))? That, I submit, is a question of law; and there is no hint that in 1965 the Legislature would have disagreed. The overriding rule affecting decisions by an agency, a jury, or a trial judge — throughout the United States and in our state, too — is that reviewing courts (who only on rare occasions reweigh the evidence) traditionally and consistently ask whether findings are supported by substantial evidence, a question of law.
There seems to be no evidence whatever, in text or legislative history, to indicate that the Legislature did not intend “to repudiate one line of decisions” in the somewhat confused welfare cases. (Cf. maj. opn., ante, p. 174, first ¶.) Three little words in a statute (“questions of law”) surely are to be preferred over the incessant litigants’ parade to this court — a parade that perhaps soon may be memorialized for nearly a half-century’s insistence (i.e., prior to Tex-Cal Land Management, Inc. v. Agriculture Labor Relations Bd. (1979)
Richardson, J., and Kaus, J., concurred.
do not agree that all the cases cited at the middle of page 171, ante, of the majority opinion conclude that substantial evidence review “is appropriate because the applicant .. . does not have a vested right” (p. 171, ante). I read Henderling v. Carleson (
Concurrence Opinion
J. — I concur.
I agree with the conclusion of the majority for the reasons expressed more than a decade ago in my concurring opinion in Bixby v. Pierno (1971)
Bird, C. J., concurred.
