Novar Corp. v. Bureau of Collection & Investigative Services

Opinion

RYBURN, J.* Appellant, the Bureau of Collections and Investigative Services of the Department of Consumer Affairs of the State of California (Bureau), appeals from a preliminary injunction enjoining it and its agents, servants, employees and representatives from making statements that respondent, Novar Corporation, is an “alarm company operator” and must be licensed by appellant.

History

Novar filed a complaint for declaratory relief and preliminary injunction seeking a declaration that Novar is not an alarm company operator, and an injunction to restrain the Bureau from making statements that Novar was required to be licensed as an alarm company operator. Novar alleged that it did not fall within the licensing provision because its deterrent system was not an “alarm system” within the meaning of the definition set forth in Business and Professions Code section 7590.1, subdivision (n). It also alleged that it would be irreparably injured unless the Bureau was restrained because its employees would be subject to harassment and possible arrest [4]and would not be willing to market the deterrent system, and it would lose an unknown amount of customers and goodwill. The court refused to issue a temporary restraining order and issued an order to show cause and set the matter for hearing. After consideration of the declarations and argument of counsel, the court found that the Novar deterrent system did not fall within the definition of an “alarm system” set forth in the Alarm Company Act (Stats. 1982, ch. 1210, § 12, p. 4445; Bus. & Prof. Code, § 7590 et seq.) and issued a preliminary injunction. The Bureau filed a petition for writ of mandate and prohibition which was denied, and this appeal followed.

Contentions

1. The preliminary injunction improperly restrains the enforcement of Business and Professions Code section 7592.

2. A preliminary injunction should not issue to prevent the exercise of a public office in a lawful manner.

3. A preliminary injunction should not issue to prevent the execution of a public statute by officers of the law for the public benefit.

Discussion

I

The Alarm Company Act provides that no person shall engage in the activities of an alarm company operator as defined in section 7590.2 unless the person holds a valid alarm company operator’s license or is exempt. (Bus. & Prof. Code, § 7592.) Section 7590.2 provides in part: “An ‘alarm company operator’ means any person who . . . engages in business ... to . . . sell . . . alarm systems. . . .” An “alarm system” is defined as “an assembly of equipment and devices arranged to signal the presence of a hazard requiring urgent attention and to which police are expected to respond.” (Bus. & Prof. Code, § 7590.1, subd. (n).)