Slaughter v. Edwards

In Slaughter v. Edwards (1970) 11 Cal.App.3d 285, the Court held that the lack of provision for notice to or participation by the licensee did not affect the validity of an order against the Fund and in favor of judgment creditors, but that it did render unconstitutional the provision in section 10475 for automatic license suspension. In reaching that conclusion the court took note of the fact that under section 10177.5 the commissioner may suspend or revoke the license of a real estate licensee where "a final judgment is obtained in a civil action against him upon grounds of fraud, misrepresentation, or deceit with reference to any transaction for which a license is required." That statute, we said, did not provide for automatic suspension or revocation upon the rendering of a judgment against a licensee, but "obviously contemplates that before a license may be suspended or revoked it must be established at the hearing not only that such a judgment was obtained but also that it was based on the specified grounds." (11 Cal.App.3d at p. 294.)