Majority
This petition for a writ of prohibition and a writ of supersedeas raises the questions (1) whether section 1094.5 of the Code of Civil Procedure provides for a review by the courts of quasi-legislative acts of administrative agencies, (2) whether, independently of that section there can be such a review, and (3) the extent of that review. _
Record
On the 14th day of September, 1950, petitioner, the Director of Agriculture, acting pursuant to the California Marketing Act of 1937 (Agr. Code, div. 6, ch. 10, comprising §§ 1300.10 to 1300.29) upon the written request of a committee of lima bean producers, processors and handlers, called a public hearing to consider a proposed marketing order for standard lima beans. It is conceded that said hearing was called, held and conducted in all respects as required by law. Thereafter, and on or about the 3d day of October, 1950, petitioner executed and issued a marketing order for standard lima beans to be submitted to producers and handlers for written assent as required by section 1300.16 of the Agricultural Code. Thereafter and on the 2d day of March, 1951, a finding was made that said marketing order for
Thereafter a mandate proceeding was filed in the San Francisco Superior Court for a review of the marketing order on the ground that the findings of the Director of Agriculture are not supported by the weight of, or substantial, evidence. Petitioners therein (referred to here as respondents) include dealers in and growers of lima beans. Several are members of the advisory board. A restraining order was issued restraining the enforcement of the marketing order pendente lite. At the hearing respondents offered, in addition to the record of the proceedings upon which the marketing order was based, certain new evidence. The court refused to admit such evidence but issued a peremptory writ of mandate, commanding the director to call a hearing pursuant to the provisions of division 6, chapter 10 of the Agricultural Code and at such hearing to permit the introduction of said evidence, to reconsider his decision issuing the marketing order in the light of such evidence, and to make due return of his actions to the court. The restraining order was continued in force. The director appealed and the appeal is now pending. Thereafter the director filed this petition to prohibit the superior court from further proceedings other than to annul its previous actions. He also seeks a writ of supersedeas staying the enforcement of the superior court orders. A stay pending determination of the issues has been granted.
Does Section" 1094.5 of the Code of Civil Procedure Apply ?
Although respondents contend that the action of the director in issuing a marketing order under the procedure provided in the Agricultural Code is quasi-judicial and not quasi-legislative, it is obvious that it is in the latter category. (See Ray v. Parker, 15 Cal.2d 275 [ 101 P.2d 665 ].) Pertinent sections of the Agricultural Code are known as “the Cali
While the language of section 1094.5 of the Code of Civil Procedure is broad enough to include the^ acts of the director in making the findings and marketing order, an examination of the legislative history of the section convinces us that it was not intended that the section apply to such acts or any quasi-legislative acts of an administrative body. This section, as well as the Administrative Procedure Act, was drawn and proposed by the Judicial Council under a directive of the 1943 Legislature to undertake a study of the procedure of California administrative agencies and of the judicial review of their decisions. Its Tenth Biennial Report, dated December 31, 1944, sets forth the scope of its study and the intent and purpose of the legislation proposed. That report makes it crystal clear that section 1094.5 of the Code of Civil Procedure, as well as the Administrative Procedure Act, was not intended to apply to the situation here. The value of the report in interpreting the legislation which the Judicial Council proposed is well stated by Mr. Justice Peters in Hohreiter v. Garrison, 81 Cal.App.2d 384 , 397 [ 184 P.2d 323 ] : “This report is a most valuable aid in ascertaining
There are many statements in the report dealing with the subject and demonstrating that the council and the legislation did not deal with quasi-legislative action. It is only necessary to make a few extracts from the report. “Because of the primarily judicial interest of the Council, it was thought that its most valuable contribution could be made in the field of administrative adjudication rather than in the field of quasi-legislative action. For that reason no attempt has been made in this report to include the agencies which are primarily rule-making in nature. . . .
“. . . It was not possible to cover this extensive field of administrative activity in complete detail, and the Council considered it far more desirable to offer a careful and detailed proposal with respect to a portion of the field of administrative adjudication than to attempt to cover the entire field with a general, less precise statute. It was determined, therefore, to select a portion of the field of administrative adjudication which seemed most in need of improvement. This, the Council concluded, was the one occupied by the agencies engaged in licensing and disciplining the members of the various professions and occupations. The decisions of such agencies have been challenged frequently before the California courts and this group seemed to furnish the largest single category of State agencies.
“The Council’s survey of administrative procedure has been limited, therefore, to this particular type of administrative adjudication. The proposed legislation is designed to provide a solution for many of the difficulties and injustices arising in the administrative licensing and disciplining of private citizens. The theories underlying the Council’s proposals in this limited field are susceptible, of course, of adaptation to other kinds of administrative action; and it is the Council’s
hope that this adaptation and extension of its work will be undertaken in the future.”
“. . . the Judicial Council, concerned primarily with judicial administration, would not be an appropriate body to supervise work in the field of quasi-legislative action.” (Pp. 10, 11-12.)
Preceding the proposed section 1094.5 to be added to the Code of Civil Procedure appears: “Part 3. Act Providing Procedure for Judicial Review by Mandamus. This proposed amendment to the Code of Civil Procedure sets forth the procedure by which judicial review can be had by the writ of mandate after a formal adjudicatory decision by any administrative agency. It would apply specifically to cases arising under the Administrative Procedure Act (Part 2 of this appendix), but would also apply to the quasi-judicial proceedings of local administrative agencies.” (P. 45.)
“The major proposal consists of an amendment to the sections of the Code of Civil Procedure dealing with the writ of mandate. Without affecting the historic uses of the writ it is suggested that, by the addition of a new section to the statute, the Legislature could prescribe the details of procedure where the writ is used for reviewing the adjudicatory decisions of administrative bodies. . . .
“The suggested amendment to the Code of Civil Procedure would be numbered Section 1094.5 and it is set forth in Part 3 of Appendix A in this report. The proposal is limited to cases involving administrative adjudication, ...” (P. 27.)
It is manifest that the words “adjudicatory decisions” wherever used in the report refer to decisions in quasi-judicial proceedings alone since those were the only kind of proceedings with which the entire report was concerned. In the “Conclusion” appears: “There are many problems in California administrative procedure untouched by the Judicial Council’s survey or by its recommendations to the Legislature. Some of these problems may be more important or more complex than those which have already been examined. The recommendation that a Department of Administrative Procedure be established in the state government is intended to provide a means for their ultimate solution but it might be useful to outline briefly the extent of the work which remains to be done.
“First, there are the fields of administrative action in which no investigation has been made by the Council. It
Writ op Mandate
This brings us to the question, to what extent, independently of section 1094.5 of the Code of Civil Procedure, can the writ of mandate be used to review the quasi-legislative action of an administrative body. The situation today, so far as determination of the matter is concerned, by the courts of this state, is the same as expressed in the before-mentioned report. “The courts have given no indication that the new mandate procedure is available where quasi-legislative administrative action is involved. The writ is available, however, to correct abuse of discretion on the part of an administrative agency where the action involved is quasi-judicial in nature. This is true whether the power is the limited quasi-judicial power of statewide administrative agencies, or the normal quasi-judicial power of local administrative agencies.” (P.140.)
‘1 Historically, the writ of mandate was invented to provide a remedy where no other remedy existed. As is stated in 9 Halsbury’s Laws of England, 744, section 1269, in speaking of the writ of mandamus:
“ ‘Its purpose is to supply defects of justice; and accordingly it will issue, to the end that justice will be done, in all cases where there is a specific legal right and no specific legal remedy for enforcing such right.’ (See, also, 16 Cal.Jur. 764, sec. 4.) ” (Drummey v. State Board of Funeral Directors, 13 Cal.2d 75 , 82 [ 87 P.2d 848 ].)
Interestingly enough, when it came to determining the act of an administrative officer in the initial application for a license, the court came to an opposite conclusion from that reached in the Drummey case involving the revoking of a license (McDonough v. Goodcell, 13 Cal.2d 741 [ 91 P.2d 1035 ]), and held that mandate cannot be used to control the discretion of an administrative officer unless an abuse of discretion is shown.
* Laisne v. State Board of Optometry, 19 Cal.2d 831 [ 123 P.2d 457 ]; Dare v. Board of Medical Examiners, 21 Cal.2d 790 [ 136 P.2d 304 ]; Moran v. Board of Medical Examiners, 32 Cal.2d 301 [ 196 P.2d 20 ]; Housman v. Board of Medical Examiners, 84 Cal.App.2d 308 [ 190 P.2d 653 ]; Southern Calif. Jockey Club, Inc. v. California etc. Racing Board, 36 Cal.2d 167 [ 223 P. 1 ].
Scope op Review
In the Drummey case, supra, and allied eases, the Supreme Court held that in mandate proceedings of the kind there permitted, the superior court had the right to exercise its independent judgment on the facts, and even to consider evidence which had not been before the administrative officer, thus granting a trial de novo, on law and facts. But in the McDonough case, supra ( 13 Cal.2d 741 ), the court held that in mandate proceedings of the type there being considered there could be no such trial de novo and that the superior court was limited to a determination of whether there was a sufficient factual basis for the conclusion of the commissioner and therefore he did not act arbitrarily or otherwise abuse his discretionary power. The court there expressly limited the Drummey type of mandate and hearing to situations where “due process required that a party aggrieved by reason of a ruling of the officer or board involving a constitutional right be accorded an opportunity to resort to a judicial tribunal for redress.” (P.753.) The type of action of the Director of Agriculture being considered here does not come within that definition. In determining the scope of the review by courts of quasi-legislative acts of administrative officers, consideration must be given to the fact that the courts must not usurp legislative power and thereby violate the separation of powers provision of the Constitution. (See Public Administrative Law, 42 Am.Jur. 563-568, §§ 190-191.) “A statute conferring a power to review nonjudicial determinations of an administrative body is not invalid where the reviewing power is limited to questions of law which are the appropriate subject of judicial determination, particularly where the review provided is not de novo but is in the nature of certiorari and limited by the record made before the administrative body.” (42 Am.Jur. pp. 565-566.)
In Ray v. Parker, supra ( 15 Cal.2d 275 ), where the court was considering the Milk Stabilization Act and a stabilization marketing plan formulated thereunder, the court quoted from “Assigned Car Cases” ( 274 U.S. 564 [ 47 Sup.Ct. 727 , 71 L.Ed. 1204 ]) : “ ‘It is not for courts to weigh the evidence introduced before the Commission ... or to inquire into the soundness of the reasoning by which its conclusions are reached. . . . These are matters left by Congress to the administrative “tribunal appointed by law and informed by experience” . . .’ ” (P. 305.) The court also quoted from Highland Farms Dairy v. Agnew, 16 F.Supp. 575 , to the effect that proceedings before the Virginia Commission under the Milk Control Act of that state to establish a milk marketing plan were “not quasi-judicial, but legislative.” After discussing a number of authorities the court said (p. 310): “Under the foregoing authorities, and others cited earlier in connection with our discussion of the validity of the petition for formulation of a marketing plan, we cannot say that the action of the director in any particular has been arbitrary, capricious or so entirely lacking in evidentiary support as to warrant judicial interference with his several orders. In an action of this character challenging proceedings and hearings of the type here involved, it is not for the courts to weigh the evidence and data adduced before and considered by the director preliminary to his issuance of the several orders here challenged. Under the circumstances here present, judicial interference should occur only when it can be said that administrative action has been arbitrary and capricious. (Silberchein v. United States, supra [ 266 U.S. 221 ( 45 S.Ct. 69 , 69 L.Ed. 256 )]; Union Transp. Co. v. Bassett, supra [ 118 Cal. 604 ( 50 P. 754 ) ].) As stated in Maxwell v. Civil Service Com., supra [ 169 Cal. 336 ( 146 P. 869 )], ‘Courts should let administrative boards and officers work out their problems with as little judicial interference as possible ... . Such boards are vested with a high discretion and its abuse must appear very clearly before the courts will interfere.’ ”
For the proposition that the mandate proceeding here should be in the nature of a trial de novo, respondents rely on cases like St. Joseph Stock Yards Co. v. United States, 298 U.S. 38 [ 56 S.Ct. 720 , 80 L.Ed. 1033 ]. However, the court in Ray v. Parker must have had those eases in mind and particularly the St. Joseph Stock Yards case because it is mentioned in the dissenting opinion. The majority opinion distinguished Morgan v. United States, 298 U.S. 468 [ 56 S.Ct. 906 , 80 L.Ed. 1288 ], where the holding was similar to that in the St. Joseph Stock Yards case.
Proceedings in' the Superior Court
Having in mind the type of review which the superior court could have made, let us see what actually occurred. In their petition for writ of mandate, respondents set forth that the director’s findings were not supported by either the weight of evidence or substantial evidence, and that in the conduct of the hearing the director through his deputies showed such obvious favoritism and prejudice in favor of the order as to unfairly influence the vote thereon. Because of those matters, it is alleged, the issuance of said order was an abuse of the director’s discretion. At the hearing in the superior court, the court could have determined the matters alleged.
As we have pointed out, the review which the court could have made is a limited one. It could not permit the introduction of new evidence, particularly of evidence which was not even in existence at the time of the hearing before the director.
The court did not examine the proceedings to determine whether the director abused his discretion, whether the public hearing was noticed or conducted as prescribed by the code, or whether the director showed favoritism or prejudice as charged. While the petition for writ of mandate alleged that the findings were not supported by the evidence, no effort was made to point out to the trial court any such deficiency.
The evidence sought to be introduced and which the court ordered the director to hear was the following, none of which, excepting No. 5, was in existence or had been ascertained prior to the promulgation of the marketing order. 1. The fixing by the United States government of the 1951 support price for large lima beans and the fact that such price assures the grower a fair profit. 2. The limited warehouse and cleaning facilities in the industry assure orderly marketing and prevent the dumping of the crop in a short period of time. 3. No carryover from the 1950 crop plus a prospective 1951 short crop. 4. The initiation by the National Dried Bean Council of an extensive sales and marketing program. 5. The
No. 5, of course, was in existence prior to the marketing order, but no effort was made to point out on what facts such contention was based nor why the evidence in relation thereto could not, in the exercise of reasonable diligence, have been produced. An examination of the proceedings at the hearing in the trial court shows that no particular reliance was placed on No. 5. The stress was placed on the first ground. When asked by the court as to whether the proposed evidence (all five) was improperly excluded or even was offered, respondents stated that it was not. It was evidence which could not have been produced before the director “because it wasn’t in existence.” The support price was not fixed by the government until April 23, 1951, approximately one and a half months after the promulgation of the marketing order and more than 40 days after its effective date. As said by respondents, the fixing of the support price by the government “is the crux of the entire matter.”
The purpose of a review in this character of proceeding is to determine if there has been any prejudicial abuse of discretion of the administrative officer by action not based upon evidence produced before such officer.
In the Tenth Biennial Report of the Judicial Council appears the statement (p. 140): “The scope of review where administrative action is challenged by the writ of mandate may be stated generally to consist of the correction of abuse of discretion.” How can an abuse of discretion be determined other than by an examination of the record upon which the action was taken ?
While it is true that the petition was broad enough to include an examination by the superior court of the record before the administrative officer, and while some mention of the court’s doing so was made at the hearing, the reporter’s transcript shows that respondents were proceeding wholly upon the theory that they were entitled to upset the director’s action by events occurring subsequently to the proceeding before him. They practically said so when their attorney concluded with the statement when informed by the judge that he was remanding the proceeding to the director, that “it’s all I can ask.” Respondents contend that the matter should now be sent back to the superior court for a determina
It is true that as yet respondents have had no judicial review of the proceedings before the director, but that is due to their own actions.
Failure to Exhaust Administrative Remedies
Section 1300.16, subdivision (d), of the Marketing Act provides: 11 The director may amend any marketing order if such amendment or amendments have been considered at a public hearing ...” and if such amendments are assented to in writing in accordance with the provisions of the section. Before invoking the action of the courts respondents are required to exhaust this administrative remedy by applying to the director to proceed to amend. “. . . the rule is that where an administrative remedy is provided by statute, relief must be sought from the administrative body and this remedy exhausted before the courts will act.” (Abelleira v. District Court of Appeal, 17 Cal.2d 280 , 292 [ 109 P.2d 942 , 132 A.L.R. 715 ].) Had respondents in the trial court pursued their charges in the petition that the evidence did not support the director’s findings, it would not have been necessary for them to seek an amendment of the order for the reason that they would be attacking the very validity of the order itself. But they did not do so. They elected to stand on the proposition that events occurring subsequently to the effective date of the order require a change or an elimination of the order. There is a provision (§ 1300.16 (c)) for suspension or termination (by the director) of the marketing order. However, it could not become effective until the end of the current marketing season and hence would be an inadequate remedy. But the amendment process has no such limitation and would give respondents adequate relief.
Let a peremptory writ of prohibition and a writ of supersedeas issue.
Peters, P. J., and Wood (Fred B.), J., concurred.
Cases cited
- Ray v. Parker 15 Cal.2d 275 at 307 p. 597, p. 604, p. 605
- Hohreiter v. Garrison 81 Cal.App.2d 384 at 397 p. 598
- Drummey v. State Board of Funeral Directors & Embalmers 13 Cal.2d 75 at 82 p. 601, p. 602
- Bank of Italy v. Johnson 200 Cal. 1 p. 602
- McDonough v. Goodcell 13 Cal.2d 741 p. 602, p. 603, p. 605
- Sipper v. Urban 22 Cal.2d 138 p. 603
- Brock v. Superior Court 11 Cal.2d 682 p. 603
- Challenge Cream & Butter Ass'n v. Parker 23 Cal.2d 137 p. 603
- Agricultural Prorate Commission v. Superior Court 5 Cal.2d 550 p. 603
- Mogan v. Board of Police Commissioners 100 Cal.App. 270 p. 604
- Hogan v. Retirement Board 13 Cal.App.2d 676 p. 604
- Murphy v. Retirement Board 49 Cal.App.2d 58 p. 604
- Assigned Car Cases 274 U.S. 564 p. 604
- Silberschein v. United States 266 U.S. 221 p. 604
- Union Transportation Co. v. Bassett 118 Cal. 604 p. 604
- Maxwell v. Civil Serv. Comm'n of S.F. 169 Cal. 336 p. 604
- Norwegian Nitrogen Products Co. v. United States 288 U.S. 294 p. 606
- Franchise Tax Board v. Superior Court 36 Cal.2d 538 at 549 p. 606
- St. Joseph Stock Yards Co. v. United States 298 U.S. 38 p. 606
- Morgan v. United States 298 U.S. 468 p. 606
- Abelleira v. District Court of Appeal 17 Cal.2d 280 at 292 p. 609
- United States of America v. Superior Court 19 Cal.2d 189 p. 610