Groves v. City of Los Angeles

WOOD, J.

Demurrer of defendant city of Los Angeles to the complaint was sustained without leave to amend. Plaintiff appeals from the judgment thereupon entered in favor of said defendant.

Plaintiff sought to enjoin said defendant, and the police chief and city clerk of said city, from enforcing against plaintiff two ordinances of the city of Los Angeles, upon the ground that the ordinances are in violation of article XIII, section 14-4/5 of the Constitution of California. Those ordinances require, among other things, the payment of a license tax for engaging in the business of soliciting and effecting undertakings of bail. One of the ordinances is No. 77,000, and the other one, an amendment thereto, is No. 92,414.

Plaintiff alleged in his complaint that he is and was engaged in the business of soliciting, negotiating and effecting undertakings of bail, both within and without the city of Los Angeles, and while engaged in said business he was and is an agent of a certain insurance company, a California corporation; he is and was a holder of a bail agent’s license issued by the Insurance Commissioner; the insurance company is and was the holder of a certificate issued by the Insurance Commissioner authorizing it to conduct an insurance business in California, including the business of executing undertakings of bail by and through persons holding bail licenses issued by the Insurance Commissioner; said insurance company has paid all taxes due the State of California under article XIII, section 14-4/5 of the Constitution; the defendants are threatening to and will cause such ordinances to be enforced against the plaintiff, unless enjoined by order of court; by said ordinances it is made unlawful to engage in any business specified in said ordinance without first having procured a license from said city so to do. The complaint also contained necessary and formal allegations regarding the adoption, existence, provisions and asserted unconstitutionality of the ordinances, and regarding no adequate or speedy remedy at law. It was also alleged therein that the attempted enforcement of the ordinances would result in arrests and charges against plaintiff and his employees, in a multiplicity of suits, and serious

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interference with his business. A copy of ordinance No. 92,414 is attached to the complaint. That ordinance provides as follows: "Every person engaged in the business of soliciting, negotiating, effecting, issuing, delivering, or furnishing bail bonds or of the posting of undertakings of bail for the release of persons charged with public offenses shall pay for each calendar year, or fractional part thereof, a license tax in the sum of $50.00 for the first $5,000 or less of gross receipts, and in addition thereto, the sum of $5.00 per year for each additional $1,000 of gross receipts, or fractional part thereof, in excess of $5,000. The term ‘gross receipts’ as used herein shall not include any insurance premiums received on behalf of any insurance company qualified to do business in the State of California, nor any commissions paid out of such premiums. ’ ’