North Whittier Heights Citrus Ass'n v. Bryant

VALLÉE, J.

Appeal by plaintiff from a judgment entered on the sustaining of a general demurrer to the first amended complaint without leave to amend. Respondent is William A. Burkett, Director of Employment, successor since November 15, 1953, to James G. Bryant, as Director of Employment.

The action is to recover state unemployment insurance taxes allegedly illegally exacted during the period January 1, 1940, through March 31, 1941. It arises under section 45.11 of the Unemployment Insurance Act, referred to as the Act. (3 Deering’s Gen. Laws, Act 8780d, § 45.11; now Unempl. Ins. Code, §§ 1178, 1181.)

1

All administrative remedies were exhausted prior to commencement of the action.

The complaint alleges:

[690]

Plaintiff is a California cooperative nonprofit agricultural association. It is composed of approximately 210 citrus growers who have groves near its establishment in Puente. During the period January 1, 1940, through March 31, 1941, plaintiff hired the labor which picked the citrus fruit in its members’ groves. The picking costs were charged to, and paid by, each member directly.

The unemployment insurance taxes on which the action is based were paid by plaintiff to defendant as Director of Employment on wages paid by plaintiff for services of laborers engaged in picking citrus fruit in the groves of its members during the period January 1, 1940, through March 31, 1941. Payment for the last quarter of the period was made on April 18, 1941.

On demand of defendant, plaintiff paid its contributions on the wages of the laborers engaged in picking citrus fruit in its members’ groves for the years 1940 through 1943 in the following years and amounts:

Quarter 1940 1941 1942 1943

1st $1227702 $1213772 $1446790 $1543702 2nd 1402.96 1801.05 1884.86 3048.09 3rd 1385.25 1920.41 2386.69 3141.87 4th 805.69 1574.52 1305.85 1192.38

On April 7, 1944, plaintiff filed a claim for refund with defendant covering all of the wages for the entire period on the ground that all the labor involved was exempt as agricultural labor. On August 9, 1946, the claim was allowed on the ground that all of the services involved were agricultural labor, but the claim was disallowed in part solely on the ground that it was barred by the statute of limitations for the period January 1, 1940, through March 31, 1941, in the amount of $6,034.64.