Millsap v. San Pasqual Union School District

FINLEY, J. pro tem.* Plaintiff Millsap appeals from a judgment of dismissal entered pursuant to plaintiff’s refusal to amend his first amended complaint after a general demurrer thereto was sustained.

Plaintiff was employed by the San Pasqual Union School District as superintendent of the district, under a written contract, dated February 7, 1957, for a period of three years from July 1, 1957, to June 30, 1960. He began his duties on July 1, 1957, and continued until July 1, 1958, when pursuant to a resolution of the Department of Education, approving the formation of a new unified school district composed of the San Pasqual District and another district, and under the provisions of Education Code (1943) subdivision (b) of section 3418 and sections 3419 and 3420 (1959 Ed. Code, §§ 2230 and 2231), the San Pasqual Union School District ceased to exist. On July 1, 1958, plaintiff made application to the Board of Trustees of the new district for employment in any administrative position available, but was refused employment in any capacity. He then brought this action in which he pleaded four causes of action for breach of contract. Plaintiff concedes that the general demurrer was properly sustained as to counts 2 and 4 in which the nonexistent San Pasqual Union School District was made the defendant, but he contends that counts 1 and 3, naming the new unified school district, do state facts sufficient to constitute a cause of action.

The demurrer raised the issue of whether under the applicable statutes plaintiff’s contract survived the old school district’s dissolution and became an obligation of the new district. We find that it did not.

The unification here was effected under statutes passed by the Legislature in 1955 (Stats. 1955, ch. 1140) and in effect when the contract here in question was formed. Appellant’s [335]contract incorporated all applicable laws then in existence, both by the general rule (Alpha Beta Food Markets, Inc. v. Retail Clerks Union, 45 Cal.2d 764, 771 [291 P.2d 433]; Castleman v. Scudder, 81 Cal.App.2d 737, 740 [185 P.2d 35]; Martin v. Fisher, 108 Cal.App. 34, 39-40 [291 P. 276]), and by an express provision in the contract, paragraph 6, specifically incorporating all applicable laws. Therefore, existent laws affecting the obligations under the contract became part of the contract. The provisions of chapter 1140, Statutes of California, 1955 pertaining to unification became mandatory on February 1, 1957. Until that date unification could be accomplished by an optional reorganization as provided in chapter 16, division 2 of the Education Code of 1943 (commencing at § 4871). Under the optional reorganization statutes, specific provisions were made for the continuation in employment by the new school district of superintendents in the appellant’s circumstances. The same provisions, however, were not incorporated where the reorganization was accomplished under the mandatory provisions. The provisions of the optional reorganization plan pertaining to continuation of employment of superintendents do not apply to mandatory unification proceedings. (31 Ops. Cal. Atty. Gen., 117, 118.)