12319 Corporation v. Business License Com

In 12319 Corporation v. Business License Com. (1982) 137 Cal. App. 3d 54, Los Angeles County required businesses to obtain a permit as a condition to offering entertainment of any sort. The plaintiff operated a nightclub, and under the ordinance, was required to obtain a permit from the business license commission. After numerous citizen complaints, the County Sheriff filed an accusation against plaintiff with the commission, and sought revocation of its business license. The Sheriff's department was represented in legal matters by the Office of the County Counsel. The revocation hearing was held before the business license commission, which was advised as to legal matters by Deputy County Counsel Tolnai. Tolnai did not act as an advocate for plaintiff or the Sheriff. However, he did assist the commission at one point by making sure that there was an adequate foundation for admission of a piece of documentary evidence that supported revocation. Plaintiff's license was revoked, so plaintiff appealed the revocation to County's license appeals board, one member of which appeals board was required to have been designated by the Office of the County Counsel. The appeals board affirmed the revocation, and plaintiff filed a petition for a writ of administrative mandamus, contending, among other things, that the facts made out a prima facie case of bias and conflict of interest against the Office of the County Counsel. After losing at the trial court, plaintiff appealed that decision, and the appellate court affirmed, concluding that plaintiff had failed to offer any facts supporting its assertion of bias and prejudice or its suggestion that the various functions performed by the County Counsel's Office were not properly insulated from one another. ( 12319 Corporation v. Business License Com., supra, 137 Cal. App. 3d at p. 61) Tolnai had represented the commission in a neutral role as its legal advisor while the commission considered evidence from plaintiff as well as from the Sheriff. Then, after the commission determined to revoke plaintiff's license, Tolnai appeared before the appeals board to seek to uphold the commission's decision - something he would have done regardless of whether that decision was for or against the plaintiff. ( Id. at pp. 61-62.) The appellate court held that fact that Tolnai assisted with the examination of a witness did not effect a forfeiture of the neutral position he held as counsel to the commission, because the total extent of such assistance consisted of inquiring whether the witness was familiar with the author's signature and, if so, whether the witness would recognize that signature. ( Id. at p. 64.) The appellate court held that this assistance was not inconsistent with the role of a neutral advisor taking action to ensure that the evidence was properly before the commission, and did not amount to adoption of the prosecutorial role. (Ibid.)