Capron v. State

• Decision Date: 14 December 1966
• Citation: 55 Cal.Rptr. 330,247 Cal.App.2d 212
• Court: California Court of Appeals Court of Appeals
• Parties: George H. CAPRON et al., Plaintiffs and Respondents, v. The STATE of California, the State Public Works Board of the State of California and the Department of Mental Hygiene of the State of California, Defendants and Appellants. Civ. 8009.

Page 330

55 Cal.Rptr. 330

247 Cal.App.2d 212

George H. CAPRON et al., Plaintiffs and Respondents, v. The STATE of California, the State Public Works Board of the State of California and the Department of Mental Hygiene of the State of California, Defendants and Appellants.

Civ. 8009.

Court of Appeal, Fourth District, Division 2, California.

Dec. 14, 1966.

As Corrected on Denial of Jan. 5, 1967.

Hearing Denied Feb. 8, 1967.

[247 Cal.App.2d 214] Thomas C. Lynch, Atty. Gen., by Marvin Goldsmith and Irwin M. Friedman, Deputy Attys. Gen., for defendants and appellants.

Jacobs, Jacobs, Nelson & Witmer, by Otto A. Jacobs, Santa Ana, for plaintiffs and respondents.

OPINION

McCABE, Presiding Justice.

Action to impose a constructive trust on certain real property condemned by defendant and for other relief. Judgment for plaintiffs allowing recovery on theory of extrinsic fraud practiced upon them by State in condemnation action, reversed.

In June 1944, the Legislature enacted the Property Acquisition Act (Chapter 18, Stats.1944 4th Ex.Sess.). As a portion of this enactment, the Property Acquisition Board was created and directed to acquire, on behalf of the State, real property sites in furtherance of the postwar proposed construction program as expressed in subsequent legislative appropriations for that purpose. Thereafter the Legislature appropriated the sum of $400,000.00 'to be expended under the provisions of the Property Acquisition Act for the acquisition of real property in furtherance of the postwar building program for use as a site for a State mental hospital under control of the Department of Institutions.' (Chap. 26, Stats.1944).

In 1946, by Chapter 145, Stats.1946, 1st Ex.Sess., there was created the State Public Works Board. The members of this board were to be the Director of Finance, the Director of Public Works, and the Real Estate Commissioner. This act authorized two members of the State Senate and two members of the Assembly to meet with and participate in the work of the Public Works Board (hereinafter referred to as 'Board'). By this legislation:

'The Board shall determine when and if any construction, improvements, and equipment provided for by this act shall be undertaken and shall give due consideration to: (1) The immediate needs of State agencies for construction and improvements; (2) obtaining construction, improvements, and equipment at the most reasonable price consistent with such needs; (3) the needs of construction, improvements, and equipment at State agencies in relation to the needs for private construction, improvements, and equipment; (4) providing of public works to relieve unemployment. Also, there was an appropriation of money including an allocation of money to the Department of Mental Health. The Director of Finance was designated as administrator of the Act.'

By the terms of Item 214 of Chapter 486, Stats.1947, 57th Sess. (Budget Act of 1947), the sum of $349,799 was approved, 'For acquisition of real property for use as a site for a state mental hospital Department of Mental Hygiene, to be expended under the provisions of the Property Acquisition Act * * *.'

By Item 358, Chapter 23, Stats.1948, headnoted under the title 'Post-War Construction Program,' the Legislature appropriated $400,000 for acquisition of real property 'as a site for a new institution for mental defectives, to be expended under the provisions of the Property Acquisition Act, Department of Mental Hygiene * * *.' '* * * which shall be available to June 10, 1951, for the purpose and subject to the conditions set forth in this item.'

On March 21, 1949, the Board adopted a resolution which reads in relevant part as follows:

'Resolution of State Public Works Board selecting site and authorizing acquisition of real property under the Property Acquisition Act (Chapter 18), Statutes of 1944, Fourth Extraordinary Session, as amended, in the County of Orange, State of California, for the Department of Mental Hygiene.

'WHEREAS, the Property Acquisition Act (Chapter 18), Statutes of 1944, Fourth Extraordinary Session, as amended, empowers the State Public Works Board to select and acquire in the name of the State of California suitable and adequate real property for use in furtherance of the postwar construction program provided for in Chapter 572, Statutes of 1943, as sites for the construction of buildings or for such other purposes as may be specified in legislation making funds available for such acquisition; and

'WHEREAS, Chapter 26, Statutes of 1944, (4th Extraordinary Session) and Item 214 of the Budget Act of 1947 make appropriations for expenditure under the provisions of the Property Acquisition Act for the acquisition of real property in the County of Orange, State of California, for use as a site for a State mental hospital under control of the Department of Hygiene, in furtherance of the postwar building program;

'NOW, THEREFORE, BE IT RESOLVED, that the hereinafter described real property be, and the same is hereby selected for acquisition under said Property Acquisition Act for the Department of Mental Hygiene, as specified in Chapter 26, Statutes of 1944 (4th Extraordinary Session), and Item 214 of the Budget Act of 1947.

'BE IT FURTHER RESOLVED by the State Public Works Board that it finds and determines and hereby declares: That public interest and necessity require the acquisition, construction or completion by the State of the improvement for which the real property herein is required, and that said real property is necessary for such improvement; that the real property herein described is necessary for such public improvement; that it is necessary that all of said real property be taken therefor, and that it is necessary that all of said real property be taken in fee simple therefor; that said proposed improvement is planned and located in a manner which will be most compatible with the greatest public good and the least private injury; that the use of all of the said real property herein described for such improvement is a public use authorized by law; and

'BE IT FURTHER RESOLVED by the State Public Works Board that this Board acquire pursuant to authority contained in the Property Acquisition Act, Chapter 26, Statutes of 1944 (4th Extraordinary Session), and Item 214 of the Budget Act of 1947, in fee simple in the name of the People of the State of California the said hereinafter described real property by proceeding or proceedings in Eminent Domain in accordance with the provisions of the Code of Civil Procedure relating to Eminent Domain; * * *.'

Various sites were inspected, and on July 28, 1948, a member of the Public Works and Acquisition Division inspected the site ultimately selected which is also the subject of the present controversy (hereinafter the Capron tract). He recommended further investigation of the desirability of this parcel.

On September 29, 1948, the then Director of the Department of Mental Hygiene advised the Director of Finance that the Capron tract of 750 acres in Orange County was satisfactory for the establishment of the proposed new mental hospital as provided in Chapter 26, Statutes of 1944, requested appointment of appraisers and institution of eminent domain proceedings. On the same day, the Deputy Director of Mental Hygiene informed Assemblyman Stanley (an Assemblyman to the State Legislature from Orange County) the tract was satisfactory to the Director of Mental Hygiene and the entire 750 acres would be purchased. The Deputy Director expressed his appreciation to Assemblyman Stanley for his efforts in convincing the people of Orange County that such an institution would be an asset to the community. Appraisers were appointed to appraise the Capron property. The departmental policy of the Department of Mental Hygiene at that time provided that mental institutions which housed and cared for mentally defective patients did not have agricultural acreage but those which housed and cared for mentally ill patients had such acreage. This differentiation in policy was the result of the philosophy then prevalent that providing agricultural work for the mentally ill patients had therapeutic value thus aiding in their rehabilitation.

In August or September 1949, a new Director of Mental Hygiene was appointed. The new Director made an inspection tour of existing facilities and sites which had been selected. The new Director decided in late October or early November 1949 that the Capron land could not be used for rehabilitation and that such institutions should be closer to urban development. He desired and suggested to the Finance Department that the acquisition of the Capron tract, and a tract not here involved, be terminated. The new Director was informed the arrangements for purchasing had gone too far. Later, in conference with the then Governor, the Director was informed the arrangements to purchase had gone too far to abort them.

On January 20, 1949, Mr. Vincent, an employee of the State of California, acting on behalf of the State Public Works Board, had a conference with Assemblyman Stanley regarding the Capron tract. Mr. Vincent testified at the trial at the times here in question (1949--1952) a function of the Board was to purchase real estate whenever an appropriation was to be expended subject to the Property Acquisition Law. At the January 1949 conference, the status of the proposed mental hospital site was reviewed. Assemblyman Stanley was advised that as soon as the appraisal reports were received the matter would be ready for presentation to the Board, possibly in February 1949. After the Board met on March 21 and on March 24, 1949, Mr. Applegate, Deputy Director, Department of Mental Hygiene, informed Assemblyman Stanley the Board had authorized the condemnation of the Capron tract and that at a later date a bill would be introduced in the Legislature to name the institution 'Fairview.' Five days later and on March 29, Mr. Applegate...