Gosney v. State of California

• Decision Date: 28 August 1970
• Court: California Court of Appeals Court of Appeals
• Parties: Wilda J. GOSNEY, etc., et al., Plaintiffs and Appellants, v. STATE of California et al., Defendants and Respondents. Civ. 34639.

Page 390

89 Cal.Rptr. 390

10 Cal.App.3d 921

Wilda J. GOSNEY, etc., et al., Plaintiffs and Appellants, v. STATE of California et al., Defendants and Respondents.

Civ. 34639.

Court of Appeal, Second District, Division 4, California.

Aug. 28, 1970.

Charles E. Jones, Long Beach, Michael Henry Shapiro, Beverly Hills, Williams T. Rintala, David A. Binder, Stanton J. Price, Los Angeles and Valerie Vanaman, Long Beach, for plaintiffs and appellants.

Thomas C. Lynch, Atty. Gen., Anthony M. Summers, Deputy Atty. Gen., John D. Maharg, County Counsel, and Paul G. Seehusen, Deputy County Counsel, for defendants and respondents.

DUNN, Associate Justice.

Two appeals are before us. The first is from an order of the trial court denying issuance of a preliminary injunction sought by appellants. ¹ The second notice of appeal involves a judgment discharging an alternative writ of mandate and denying issuance of a peremptory writ. The appeal, however, is not from the entire judgment but 'from that portion of the judgment * * * which decreed as follows: 'FINDINGS OF FACT ". The notice of appeal goes on to recite the language of Findings V--XII, inclusive, and Conclusions I--V, inclusive.

I. Appeal From Denial Of Preliminary Injunction

The grant or refusal of a preliminary injunction is, generally speaking, within the discretion of the trial court and its order may be reversed on appeal only if abuse of discretion is shown. As stated in Lagunitas Water Co. v. Marin County Water Co., 163 Cal. 332, 336--337, 125 P. 351, 353 (1912): 'But a preliminary injunction is not a matter of right. It is addressed to the discretion of the court. In denying it the court does not necessarily determine anything as to the merits of the main controversy. It may conclude that from the evidence produced on the application for a preliminary injunction it does not appear that pending a trial any possible injury can result to the plaintiff, and may decline to grant an injunction until after the trial of the cause.' And in Hueneme M. & P.L.A. Ry. v. Fletcher, 65 Cal.App. 698, 703, 224 P. 774, 776 (1924), the court said: '(1) It is well settled that a preliminary injunction will not issue in a doubtful case. 'The rule has been frequently laid down broadly that a preliminary injunction will not issue where the right which the complainant seeks to have protected is in doubt, where the right to the relief asked is doubtful, or except in a clear case of right.' * * * (2) It is also a settled proposition of law that a preliminary injunction may not be had as a matter of right, but that the question whether such an injunction shall be granted or refused rests in the sound discretion of the court.' Additionally see: Santa Cruz F.B. Assn. v. Grant, 104 Cal. 306, 308--309, 37 P. 1034 (1894); McCoy v. Matich, 128 Cal.App.2d 50, 52, 274 P.2d 714 (1954); Schwartz v. Arata, 45 Cal.App. 596, 601, 188 P. 313 (1920).

It is, of course, true that the trial court has no discretion to act capriciously; it is required to exercise its discretion in favor of the party most likely to be injured. Riviello v. Journeymen Barbers etc. Union, 88 Cal.App.2d 499, 510, 199 P.2d 400 (1948); Ellis v. American Federation of Labor, 48 Cal.App.2d 440, 446, 120 P.2d 79 (1941). Where the plaintiff shows he will suffer irreparable damage unless defendant is restrained pending trial, the relief sought should be granted. Porter v. Jennings, 89 Cal. 440, 443--445, 26 P. 965 (1891); Carolina Pines, Inc. v. Catalina Pines, 128 Cal.App. 84, 89, 16 P.2d 781 (1932). Where, however, it further appears that, to grant it, would place an unwarrantable burden under the circumstances upon defendant, when the court must weigh the two sides of the issue and exercise its discretion and judgment. Santa Cruz F.B. Assn. v. Grant, Supra.

We examine the record to determine if the trial court abused its discretion. On September 13, 1968 plaintiffs filed a verified complaint, being a class action seeking injunctive and declaratory relief and issuance of a writ of mandate. The plaintiffs are persons eligible for assistance under the Aid to Families with Dependent Children (AFDC) program (Welf. & Inst. Code, §§ 11200--11507). Defendants are the State of California and its Department of Social welfare (SDSW), the County of Los Angeles and its Department of Public Social Services (DPSS), and certain officers of those political subdivisions and agencies.

In their verified complaint plaintiffs alleged: On or about August 1, 1967, in several DPSS districts of the county, defendants converted from a manual system to a computerized data processing system for the preparation and posting of AFDC warrants; ² because of defendants' failure properly to plan, supervise and operate the computerized system, many members of the class represented by plaintiffs did not receive warrants on time, or at all, or in the correct amount; in spite of their knowledge of the high rate of such computer-caused errors, defendants failed either to effect substantial improvements in the computerized system so as to minimize the error rate, or to establish an adequate 'fail-safe' system to provide timely and accurate payments in the event of computer errors; such omissions on the part of defendants constituted a breach of their duty to provide timely AFDC warrants in the correct amount.

The complaint contained five causes of action, all of which included the foregoing allegations. Additionally, in the first, second and fifth causes of action it was alleged an actual controversy existed between the parties as to whether defendants' operation of the computerized system and their failure to provide a 'fail-safe' system constituted a breach of their duty to make timely and correct payments of AFDC benefits. In the third cause of action it was alleged that defendants intended to extend use of the computerized system to certain DPSS districts still using the manual system of warrant disbursement. In the fourth cause of action it was alleged that because of defendants' breach of their duty to provide timely and correct AFDC warrants, the county was required to expend its funds to supply emergency aid to those who failed to receive warrants, and that such expenditure constituted waste because county funds so used were not supplemented by state or federal moneys, as were the regular AFDC warrants.

Plaintiffs sought the following relief: (1) as to the first four causes of action, preliminary and permanent injunctions enjoining defendants from improperly or negligently operating and supervising the computerized data processing system, requiring them to establish and maintain an alternative 'fail-safe' system to assure timely and accurate payment of AFDC benefits in the event of failure of the computerized system to provide such benefits, and enjoining them from extending use of the computerized system unless they properly operated it and provided a 'fail-safe' system; (2) as to the fifth cause of action, alternative and peremptory writs of mandate ordering defendants properly to operate the computerized system and to establish an alternative 'fail-safe' system; ³ and (3) as to all causes of action, a declaration that the manner of defendants' operation of the computerized system constituted breach of their duty to provide timely and accurate payments of AFDC benefits.

The court issued an alternative writ of mandate and an order to show cause as the the preliminary injunction. Defendants filed an answer denying the allegations of the complaint here pertinent, at the same time filing a general demurrer. (Code Civ.Proc. §§ 430, 431.) Both sides filed declarations supporting and opposing issuance of the injunction. A hearing was had regarding issuance of the writ of mandate and a preliminary injunction, and to dispose of the demurrer. After the hearing, the alternative writ of mandate was discharged and a peremptory writ denied. The preliminary injunction was denied. The demurrer was sustained as to the first four causes of action on the ground of failure to state any cause of action, the minute order stating that the relief sought therein was encompassed in the fifth cause of action. Plaintiffs were given ten days to amend, but did not do so.

As noted, the declarations filed were in conflict. Defendants' showed, among other things, that the increase in workload over the years was enormous, but that errors resulting in 'problem cases' had been considerably reduced, both numerically and by percentage, with experience and procedural changes. For example, the AFDC program increased from 30,625 'cases' in July 1963 (including 87,405 children and 26,761 adults) to 79,754 'cases' in July 1968 (including 220,626 children and 81,455 adults.) In August 1968 there were 80,960 'cases'. During August, 1968 and the five months preceding, the increase in operations was pronounced. Thus, in March 1968, 106,012 warrants for the payment of $9,578,169.38 were issued to recipients. In August, 118,813 warrants were issued to pay $10,490,475.64. The number of 'problem cases' decreased from 4,065 to 830, and the percentage of 'problem cases' to warrants issued dropped from 3.83 percent to 0.69 percent.

The number of changes (in addresses, recipients, amounts to be paid and the like) amounted, in August, alone, to 108,000 changes. Of this number, 5,222 were added as newly approved recipients and 3,650 were terminated. 'Prior to changing the system, all such case changes were processed manually. The anticipated and realized increased in AFDC caseload and the growing complexity of this program with its attendant laws and regulations would have made continuation of the prior (manual) system unmanageable.' ⁴

To require defendants, by preliminary injunction, to adopt new procedures pending trial well could have resulted in an increase in problem cases, if due only to the time-lag in familiarization. The tests and studies of the system which would be needed to effect any...