Opinion
George D. Watson was indicted on two charges of conflict of interest (Gov. Code, §§ 1090, 1097), and one charge of bribery (Pen. Code, § 68). One conflict-of-interest charge was set aside before trial (Pen. Code, § 995), and a jury convicted Watson on the two other charges. The trial court ordered a new trial on the bribery conviction and then dismissed that charge in furtherance of justice. (Pen. Code, § 1385.) On the conviction for conflict of interest, the trial court fined Watson $1,000 (plus a $250 penalty assessment) and forever barred him from holding office in California. Watson appeals.
Government Code section 1090 prohibits a city officer from being financially interested in any contract made by a board of which he is a member. Watson was a member of the Board of Harbor Commissioners of the City of Los Angeles from 1961 to 1967. His conviction for conflict of interest was based on his vote as commissioner in 1966 to approve a lease of harbor facilities by the City of Los Angeles to an enterprise which he helped finance.
Watson’s briefs teem with contentions, but raise only a few basic questions: (1) whether Government Code section 1090 is constitutional; (2) whether the evidence supported the verdict; (3) whether the jury instructions were adequate; (4) whether the trial court’s attempts to cope with publicity surrounding the trial prevented a fair trial; (5 ) whether the conduct of counsel prevented a fair trial; and (6) whether the sentence was constitutional.
1. Government Code Section 1090
Government Code section 1090 provides in pertinent part: “Members of the Legislature, state, county, special district, judicial district, and city officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. . . .” Watson contends this section is vague, uncertain, and indefinite, since the word financially is nowhere defined.
2. Sufficiency of the Evidence
The basic facts are undisputed. In 1964 Watson, a member of the Los Angeles Board of Harbor Commissioners, visited a floating restaurant in Vancouver, British Columbia, and concluded it would be desirable to have a similar restaurant in Los Angeles Harbor. In late 1964 or early 1965 he persuaded Leonard Udell of Vancouver, owner of an obsolete passenger liner named S.S. Princess Louise, to visit Los Angeles to explore the possibility of bringing the S.S. Princess Louise to Los Angeles Harbor and converting her into a floating restaurant. On that visit Watson introduced Udell to Charles G. Sutton, manager of a Los Angeles Harbor restaurant, and suggested the two of them might put something together. Later Watson went back to Vancouver to look at the S.S. Princess Louise, and Sutton made two trips to Vancouver for the same purpose. On one of these trips Sutton was accompanied by Lawrence Whiteneck, the chief harbor engineer for the Port of Los Angeles.
As early as March 1965 Sutton opened negotiations with the harbor department to obtain a 50-year lease on Berth 237 in Los Angeles Harbor as a location for the S.S. Princess Louise. He also sought to buy a
The main issue in the case involves the interpretation of these facts. Watson contends the evidence shows only that Sutton owed $10,400 to Engineering Associates at the time Watson voted in favor of the lease, and he argues that the existence of a debt from Sutton to Engineering Associates did not make him financially interested in the lease of Berth 237 to Princess Louise Corporation. With this argument in mind we have examined the record to see whether it contains substantial evidence to support the jury’s conclusion that Watson was financially interested in the lease, for if it does, the verdict cannot be set aside on the ground of insufficiency of evidence.
(People
v.
Newland,
“Q. Mr. Watson, your business or occupation, sir?
A. Business owner.
Q. And the name of the business?
A. Engineering Associates.
Q. And how long—that is a wholly owned corporation; is that correct, sir?
A. Yes.
Q. And it is owned by whom, sir?
A. By my wife and myself.
Q. And how long have you had Engineering Associates, sir?
A. Well, actually, Engineering Associates since 1954. There was another engineering company with another name that was merged into this.
Q. And you have owned the corporation at least since 1954; is that correct?
A. This is correct.”
Sutton testified Watson arranged for his loan from Engineering Associates, and Watson himself testified, “I loaned him this money.” Sutton told Watson he was buying the liquor license for use on the Princess Louise. Testimony of various city employees suggested that Watson had been instrumental in expediting approval of the lease and had intervened in its favor on two occasions.
It is also clear that Princess Louise Corporation was created by Sutton as a vehicle to enable him to operate the S.S. Princess Louise as a floating restaurant at Berth 237. In connection with his promotion of this venture Sutton secured a certificate on 30 July 1965 from Bernard J. Caughlin, General Manager of the Port of Los Angeles, which declared:
“To Whom It May Concern:
“This is to advise that negotiations are being carried on with Mr. Charles G. Sutton for a 50-year lease at Berth 237, Los Angeles Harbor, for the location of the vessel Princess Louise, which vessel is to be used as a floating restaurant and cocktail bar, with banquet facilities.”
We must disregard the technical relationship of the parties and look behind the veil which enshrouds their activities in order to discern the vital facts.
(People
v.
Deysher, 2
Cal.2d 141, 146 [
We conclude that the evidence of financial interest was sufficient to support the verdict.
3. Instructions to the Jury
The trial court instructed the jury in part: “The word ‘financially interested’ as used in Government Code section 1090 means any financial interest which might interfere with a city officer’s unqualified devotion to his public duty. The interest may be direct or indirect and includes any monetary or proprietary benefits, or gain of any sort, or the contingent possibility of monetary or proprietary benefits. The interest is direct when the city officer, in his official capacity, does business with himself in his private capacity. The interest is indirect when the city officer, or the board of which he is a member, enters into a contract in his or its official capacity with an individual or business firm, which individual or business firm, by reason of the city officer’s relationship to the individual or business firm at the time the contract is entered into, is in a position to render actual or potential pecuniary benefits directly or indirectly to the city officer based on the contract the individual business firm has received.”
This instruction was directly taken from instructions approved by this court in
People
v.
Darby,
Watson next contends the following two-instructions were only partially correct: “[I]n a prosecution for conflict of interest, the People do not have to prove fraud, dishonesty, or loss; nor is it a defense in such a prosecution that there was no actual fraud and/or dishonesty or loss.”
“In a prosecution for conflict of interest, the People do not have to prove that the contract is unfair, unjust or inequitable to the city; nor is it a defense in such a prosecution that the contract was fair, just and equitable.” Watson argues the jury should have been allowed to consider whether he was acting in good faith and whether the lease was fair, just, and equitable.
The law is otherwise. The conflict-of-interest statute is founded on the ancient and self-evident principle that no man can faithfully serve two masters, a principle which has always been an essential attribute of every rational system of positive law.
(Stockton Plumbing & Supply Co.
v.
Wheeler,
This court in
People
v.
Darby,
Considerations of fraud and unfairness were therefore irrelevant
(Millbrae Assn. for Residential Survival
v.
City of Millbrae,
Finally, Watson contends the trial court should have instructed the jury on what constitutes a creditor-debtor relationship, since the prosecution relied on the existence of that relationship to establish Watson’s financial interest in the lease. But Watson failed to request such an instruction, and in a criminal case the court is only required to instruct on its own motion on general principles of law. Unless specifically requested, the court need not consider instructions on special points of law or special theories which might apply to particular facts.
(People
v.
Warren,
In 1967 reporters for the Los Angeles Times, the newspaper of largest general circulation in the area, uncovered evidence which purportedly indicated corruption within the Harbor Department of the City of Los Angeles. Thereafter the Times gave continuous and heavy coverage to its discoveries and to the subsequent indictments and trials of persons connected with or doing business with the harbor department. This publicity focused most intensely on a businessman named Keith Smith, who, assertedly, had attempted to bribe several harbor commissioners. In December 1967, Keith Smith, and harbor commissioners Watson, Rundberg, and Starr were indicted by the grand jury at the same time.
a. Gag Order
In Watson’s cause the trial court on its own motion ordered the parties, attorneys, and witnesses to refrain from releasing extrajudicial statements relating to the cause except for basic facts about the identity of the defendant, the nature of the charges against him, and defendant’s denial of the charges. 2 Watson did not object to the order at the time it was issued, nor did he object to it prior to entry of judgment by the trial court.
On appeal, Watson urges the invalidity of the gag order because it was entered without prior notice to him and because it unconstitutionally restricted his freedom of speech. He argues that this restriction prejudiced his cause because of the following: the Los Angeles Times was the prime mover in initiating charges against him, and it played a role in his prose
Considered as an abstract proposition, Watson’s argument under certain circumstances might carry considerable weight. (Cf.
Mills
v.
Alabama,
But this is not such a case, and we are not required to consider abstract questions which might arise in some other case but did not arise in this one. Here the gag order was entered by the court in an attempt to insure both parties a fair trial. (Cf.
Sheppard
v.
Maxwell,
No objection was made by Watson at the time of the order to lack
b. Motion to Sever
The trial court denied Watson’s motion to sever the trial of the bribery charge from the conflict-of-interest charge. Watson claims this ruling was erroneous, because the extensive publicity surrounding the bribery charge, which involved Keith Smith (see
Smith
v.
Superior Court,
The decision to sever separate offenses for trial rests in the sound discretion of the trial court.
(People
v.
Kelly,
Additionally, the record reveals no evidence of confusion of issues or personalities in the minds of the jurors. The conflict-of-interest charge involved a loan, a liquor license, and Charles G. Sutton; the bribery charge involved stock transactions, the development of harbor land, and Keith Smith. The record indicates that the jury reached its verdict on the conflict-of-interest charge first and then continued to deliberate on the bribery charge. Plainly, the conflict-of-interest charge was not riding the coattails of the more publicized bribery charge, and we conclude the trial court did not abuse its discretion in refusing to sever the two charges for trial.
c. Motion for Mistrial
Local news media covered Watson’s trial with daily accounts of the proceedings, The Los Angeles Times continued its investigation of asserted corruption in the harbor department. While the trial was in progress the Mayor of Los Angeles, who had appointed the three indicted harbor commissioners, held a press conference at which he declared that Watson’s prosecution was unfair and that the district attorney was plotting to “get” the mayor. The mayor’s remarks were extensively reported in the news media, and Watson moved for a mistrial, which was denied. Watson argues the trial court should have granted his motion for a mistrial because of the mayor’s comments.
We disagree. First, there is no showing how or in what respect the mayor’s comments prejudiced Watson’s defense. The mayor defended Watson’s conduct and criticized the district attorney and the grand jury for prosecuting him. We agree with the observation of the Attorney General that the comments attributed to the mayor favored Watson’s cause by characterizing his prosecution as political and the charges against him as highly technical. Second, the trial court repeatedly admonished the jury “not to read, listen to or watch anything about this case that may appear in any of the news media.” The jury is presumed to have followed the admonitions of the trial court
(People
v.
Sutic,
Watson argues that in presenting his defense he was denied effective assistance of counsel, contending that his attorney should have moved for a change of venue, for a continuance, for sequestration of the jury; that he should have tendered clarifying instructions; and that he should have argued to the jury that the $10,400 loan was made by Engineering Associates to Sutton and did not involve Watson.
To justify relief on the ground of inadequate representation by counsel, an extreme cause must be disclosed. It must appear that counsel’s lack of diligence or competence reduced the trial to a “farce or a sham.”
(People
v.
Ibarra,
Watson also contends the district attorney committed prejudicial misconduct in making comments in his opening statement which he should have known were untrue. The comments were, (1) the evidence would show Sutton was broke at the time he borrowed money from Watson, and (2) the prosecution would call another harbor commissioner to testify that Watson said he had a percentage of the Princess Louise.
We find nothing prejudicial in these comments. On the first point, evidence at the trial supported an inference that Sutton was, in the vernacular, broke.. Sutton testified that he had been out of work for a year and that,
We conclude that Watson was not denied a fair trial by the conduct of counsel for either defense or prosecution.
6. The Sentence
Government Code section 1097 provides in pertinent part: “Every officer or person prohibited by the laws of this State from making or being interested in contracts . . . who wilfully violates any of the provisions of such laws, is punishable by a fine of not more than one thousand dollars ($1,000) or by imprisonment in the state prison for not more than five years, and is forever disqualified from holding any office in this State.” Under this section the trial court fined Watson $1,000 and forever barred him from holding office in the State of California.
Watson contends the judgment of disqualification from office denied him his constitutional right to due process because he was given no notice and provided with no hearing prior to the entry of the judgment which forever barred him from office. This contention is frivolous. Penal Code section 15 provides that the state may punish by disqualification to hold office; Government Code section 1097 gives notice that disqualification to hold office is a penalty attached to a violation of Government Code section 1090. At the time of sentence Watson was chargeable with knowledge of the penalties provided by law for the offense for which he was prosecuted and convicted. Parenthetically, we note that “forever” need not run in perpetuity, for on rehabilitation Watson can apply to the governor for a pardon. (Cal. Const., art. V, § 8.)
Penal Code section 13520 creates a Peace Officers’ Training Fund, and section 13521 provides that penalty assessments for the benefit of the fund shall be levied and collected in specified amounts by the courts. The judgment imposed a penalty assessment on Watson, which amounted to $250. Watson’s contention that these sections deny him equal protection of law has no merit.
(People
v.
Norman,
The purported appeals from “orders” and “the order after judgment imposing a fine and penalty assessment” are dismissed. The judgment is affirmed.
Roth, P. J., and Herndon, J., concurred.
A petition for a rehearing was denied March 3, 1971, and appellant’s petition for a hearing by the Supreme Court was denied April 1, 1971.
Notes
The legislative intent to make the section as precise as possible by adding the word financially is apparent from the report entitled “Conflict of Interest” of the Assembly Interim Committee on Government Organization:
“How is the word ‘interested’ to be interpreted? Presumably this means ‘financial interest,’ but the language is not explicit. Only contracts and sales are covered by Section 1090, although many other possibilities for conflicts of interest exist. . . . We recommend that Section 1090 of the Government Code be amended to define interest as ‘financial interest.’ ” (California Legislature, 12 Assembly Interim Com. Rep. No. 6 (1961-1963) p. 9.)
“It appearing to the Court that the within case is one of considerable public interest and may result in substantial publicity, and that there is a reasonable likelihood that dissemination by any means of public communication of extrajudicial statements relating to this case may interfere with a fair trial or otherwise prejudice the due administration of justice, on its own motion the Court makes the following order:
“No party nor attorney herein nor judicial employee nor law enforcement agency or officer associated with this case, nor any agent, employee, independent contractor, business associate or representative of such persons or entities, associated with this case, nor any witness having appeared herein shall release or authorize the release of any extrajudicial statement relating to this case, for dissemination by any means of public communication, excepting substantive matters as follows:
“1. Factual statements of the Defendant’s name, age, residence, occupation and family status. 2. The circumstances of arrest, namely, the time and place of arrest, and the identity of the investigating and arresting officers and agencies and the length of the investigation. 3. The nature, substance and text of the charge including a brief description of the offenses charged. 4. Quotes from or reference without comment to public records of the Court in the case, and to other public records and communications heretofore disseminated to the public. 5. The scheduling and result of any stage in the judicial proceedings. 6. A request for assistance in obtaining evidence. 7. A statement without additional comment that the Defendant denies the charges against him. 8. The identities of attorneys herein.”
