Opposition Brief — Keller v. State Bar of California

Supreme Court brief1990

Ask Donna

What actually matters in this document.

Text

In the Supreme Court

United States

OcToBerR TERM, 1988

Eppie KELLER, ET AL

V.

State BAR OF CALIFORNIA, ET AL

E EEE OSS ee eee Se

ON PETITION FOR A WRIT OF CERTIORAR!

TO THE SUPREME COURT OF CALIFORNIA

RESPONDENTS’ BRIEF IN OPPOSITION

—— — — aS

Heasert M RosentHar HursTepier, Minka. Kats

*Diane Yu & BEARDSLEY

555 PRaNKLIN STREET Rovert S8 Tuono

San Francisco, CALIFORNIA Lavare d Zeus

(415) 561-8200 Mary EK Heavy

»Counsel of Record Jvorrn R Stans

355 South Grand Avenue

45th Floor

Loe Angeles. California

(213) 617-7070

Attorneys ‘or Respondents

= ee ee ee '

Bowne of Lee Angeties, Ine. Law Printers (215) 742-400

TABLE OF CONTENTS

Page

I.

SUMMARY OF ARGUMENT ................... 1

II.

STATEMENT OF THE Cass 4

III.

REASONS FOR DENYING THE WRIT......... 7

A. There Is No Conflict With Other Decisions 7

B. The Only Federal Question Implicated By The

California System Has Long Been Settled... 11

1. The First Amendment Does Not Restrain

C. This Court Should Not Reach Out To Take A

Case So Dependent On Issues Of State Law 14

IV.

r e ö eee eee 16

a sedesbedeacedos A-l

California Statutes

e ...t see B-1

Motion For Summary Judgment and Brief in the

Superior Cuurt

r eee eee C1

Brief in the Court of Appeal

re eee eee eee D-1

Brief in the California Supreme Court

TABLE OF AUTHORITIES CITED

( ases

Pose

Abood v. Detroit Board of Education, 431 U.S. 209,

52 L.Ed.2d 261, 97 S.Ct. 1782 (1977) ..... 3, 6,9, 13

American Party of Texas v. White, 415 U.S. 767, 39

L.Ed.2d 744, 94 S.Ct. 1296 (1974)... ......... 12

Arrow v. Dow, 544 F. Supp. 458 (D.N.M. 1982) 7.8

Autenrveth v Cullen, 418 F.2d 586 (9th Cir. 1969),

cert. demed, 397 U.S. 1036, 25 L.Ed. 2d 647, 90

anner... ccccccccccccscccessesees 9

Petition of Chapman, 509 A.2d 753 (N.H. 1986) 7.8

Chromecle Publishing Co. v. Superior Court, 4

Cal.2d 548, 7 Cal. Rptr. 109 (1960) ........... 5

Ellis v. Brotherhood of Railway, Airline & Steam-

ship Clerks, 466 U.S. 435, 80 L.Ed.2d 428, 104

ee Pe 13

Engel v. McCloskey, 92 CalApp.3d 870, 155

Cal. Rptr. 284 (1979/0 5

Ertinger v. Regents of the e of Caiteraia,

137 Cal. App.3d 389, 187 Cal. Rptr. 164 (1982)

cert. demed, 462 U.S. 1133, 77 L.Ed.2d 1368, 103

S.Ct. 3114 (1983) ......... — 14

FCC v. League of Women Voters of Califorma, 465

U.S. 364, 82 L.Ed.2d 278, 104 S.Ct. 3106 (1984) 12

Garner v. Teamsters Lecal 776. 346 U.S. 485, 9

L.Ed. 228, 74 S.Ct. 161 (1886 11

Gibson v. Florida Bar, 7 Fld 1564 lit Cir.

14—ẽFÿỹ/ñͥ!f — ...!. 7. 8

Hollar v. Government of the Virgin Islands, 857 F 2d

BED GO8 Gin Bee ( 7. 8

TABLE OF AUTHORITIES CITED

CASES

Keller v. State Bar of California, 47 Cal.3d 1152, 255

„„ „ 6. 7

Lathrop v. Donahue, 367 U.S. 820, 6 L. Ed.2d 1191,

EE 5 15

Levine v. Heffernan, 864 F. 2d 457 (7th Cir. 1988) ~

Michigan v. Long, 463 U.S. 1032, 77 L.Ed.2d 1201,

BU GAG. SEED CIGGS) . 2 cece cc cccccccccess 2, 11

Miller v. California Commission on Status of Women,

151 Cal.App.3d 693, 198 Cal.Rptr. 877, appeal

dismissed for want of jurisdiction, 469 U.S. 1133,

83 L.Ed.2d 15, 105 S. Ct. 64 (198) 12, 13

Regan v. Taxation with Representation of Washing-

ton, 461 U.S. 609, 76 L.Ed.2d 129, 103 S.Ct. 1997

r ] m . . 0 „ 12

Romany v. Colegio de Abogados de Puerto Rico, 742

e oc cccccccseoceseceess 7

Standard Oil Co. of California v. Johnson, 316 U.S.

481, 86 L.Ed. 1611, 62 S.Ct. 1168 (1942) 2

Stanson v. Mott, 17 Cal.3d 206, 130 Cal.Rptr. 697

D eee eee 6. 10, 14

State Bar of California v. Superior Court, 207 Cal.

eee 6

United States v. Lee, 455 U.S. 252, 71 L. Ed.2d 127,

r cece seees 13, 14

United States Constitution

United States Constitution, First Amendment

S 3. 8. 9, 11. 14, 15

iv

TABLE OF AUTHORITIES CITED

Page

California Constitution

California Constitution, Article VI, Sec. ....... 4

Statutes

Federal

Labor Management Relations Act, 29 U.S.C. § 141 11

National Labor Relations Act, 29 U.S.C. 5151 11

Railway Labor Act, 45 U.S.C. 5151. 11. 13

State

California Business & Professions Code

1

5

Rules

Rules of the Supreme Court

Dee eee eee see ess eee 7

ieee ee e e eee eee 11. 14

Vv

TABLE OF AUTHORITIES CITED

Page

Treatises

P. Bator, D. Meltzer, P. Mishkin, D. Shapiro, Hart

& Wechsler’s The Federal Courts and the Federal

GED Gas GE, BND cccdvcccccceccccocecece 15

L. Tribe, American Constitutional Law (2d ed.

b UV ene 14

ee „ Re

.

'

|

No. 88-1905

In the Supreme Court

OF THE

United States

OcToBER TERM, 1988

Ebb KELLER, ET AL

vs.

STaTE BAR OF CALIFORNIA, ET AL

ON PETITION FOR A WRIT OF CERTIORARI

TO THE SUPREME COURT OF CALIFORNIA

RESPONDENTS’ BRIEF IN OPPOSITION

I.

SUMMARY OF ARGUMENT

The California Supreme Court conducted a careful

analysis of the constitutional status and legislative struc-

ture of the State Bar of California, and found that

California law envisions the State Bar as a state govern-

mental agency, subject to the statutory and judicially-

developed limitations on government speech. The Califor-

nia Supreme Court based its characterization of the State

Bar purely on state law, in particular the unique structure

of the State Bar and its place in California's governmen-

tal system. From this finding, it reached the inescapable

conclusion that the remedies available to those who object

to the State Bar's expenditures are the same as those

available to other taxpayers, rather than in lawsuits seek-

ing to silence the State Bar by judicial fiat.

Petitioners do not ask this Court directly to review the

California Supreme Court's holding as a matter of state

law that the State Bar is a governmental entity, as indeed

they cannot. See Standard Oil Co. of Califorma v. Johnson,

316 U.S. 481, 483, 86 L.Ed. 1611, 62 S.Ct. 1168 (1942);

Michigan v. Long, 463 U.S. 1032, 1041, 77 L.Ed.2d 1201,

103 S.Ct. 3469 (1983). Petitioners attempt to do so

indireetly, however, by ignoring the California Supreme

Court’s specific factual and legal findings regarding the

State Bar, and addressing their petition to the abstract

issue of the limits on state bars as a generic institution.

Seeking to have federal law impose a uniform structure

on the diverse needs of the states, they urge this Court to

decide that the abstraction petitioners label “a state bar

is akin to a labor union, and subject to the first amend-

ment constraints developed in the union cases, con-

straints that have never been applied to governmental

entities. Thus, in effect petitioners ask this Court to

overturn the California Supreme Court's interpretation of

California law.

By ignoring the specific findings made by the Califorma

Supreme Court, petitioners attempt to manufacture a

conflict between the decision of the California Supreme

Court and decisions of courts that have considered the

limits on compulsory fees imposed by the integrated bars

of other states. However, none of the cases cited by

petitioners addressed those bars role in state government

as did the California Supreme Court. None of the re-

ported cases describe integrated bars subject to substan-

tial legislative control of their funding and review of their

activities as is the State Bar of California. Because the

State Bar of California is viewed as a unit of state

government, no conflict exists between the California

Supreme Court's application of the standard governing

government speech in this case, and other courts’ applica-

tion of the standard governing private associations in

cases involving integrated bars of states that have opted

for an entirely different system.

In urging this Court to review the decision below as

raising an important question of federal law, petitioners

ignore the unique facts of this case and the state law

issues that predominate. The California Supreme Court

did not purport to decide what general rules govern the

use of bar fees by integrated bars. Its holding was limited

to the specific facts and state law issues presented by the

California system, which do not appear to be duplicated in

any other reported case. On these facts, federal law has

long been settled. This Court has never permitted di“ sent:

ing taxpayers to silence government speech for the obvi-

ous reason that it would critically undermine the

government's ability to function.’ The union cases cited

by petitioners themselves recognize the distinction be-

tween compelled support of private organizational speech

and compelled support of government speech, which is

justified by the safeguards inherent in the political pro-

cess as well as by the purposes and needs of government

speech. See Abood v. Detroit Board of Education, 431 U.S.

209, 259 n.13, 52 L.Ed.2d 261, 97 S.Ct. 1782 (1977)

(Powell, J., concurring). California s system therefore

‘Petitioners incorrectly characterize the (California Supreme

Court's decision as upholding spending for a virtually unlimited

the Court ignored the first amendment issues. In fact, the California

Supreme Court expressly considered the limits the first amendment

places on entities like the State Bar. The Court applied to the State

Bar the judicially-developed limits on electioneering by government.

and in doing so, found certain speeches by a former president of the

State Bar to be inconsistent with those limits. Thus, in this case.

state law provides more limits on government speech than does

federal law, see infra, § II.

4

raises no important federal questions that should be

decided by this Court, and as a matter of comity to the

judicial and legislative branches of California, this Court

should decline petitioners’ invitation to federalize the

integrated bar.

Il.

ST/TEMENT OF THE CASE

The State Bar Act, California Business & Professions

Code §§ 6000 et seq., and article VI, section 9 of the

California Constitution establish the State Bar of Califor-

nia as a public corporation.” The State Bar regulates the

practice of law in California. which includes the admis-

sion and discipline of attorneys, B&P Code § 6046, the

arbitration of fee disputes, B&P Code § 6200, and the

maintenance of a client security fund, B&P Code § 6140.5.

Its foeus extends beyond the economic needs of its mem-

bers; its statutory mandate includes the improvement of

the science of jurisprudence and promotion of the im-

proved administration of justice. B&P Code § 6031(a).

The California legislature also has commanded the State

Bar to aid in specific legal projects in the publie interest

including the Law Revision Commission and the Commis-

sion on Judicial Performance. Government Code §§ 8287,

68725.

The State Bar is governed by a twenty-three member

Board of Governors, consisting of fifteen lawyers elected

by the lawyers of the State, the State Bar president, and

six publie members, four of whom are appointed by the

All citations are to the California Code, unless otherwise indi-

eated. Copies of the relevant statutes omitted from the petition are

ineluded in the Appendix, as are the briefs submitted by the State

Bar in each of the courts below.

5

governor, one by the Senate Rules Committee, and one by

the Speaker of the Assembly. B&P Code § 6013.5. The

State Bar funds its activity primarily through fees from

lawyers admitted to practice in the State, but is required

to obtain explicit legislative approval before assessing any

fees. Every year, the State Bar is required to submit to

the Legislature a report of all projected activities and

anticipated funding needs, with details on all expendi-

tures; the documents must be in a form comparable to

those prepared by all state agencies. B&P Code § 6140.1.

Based on its review of that information, the legislature

passes a bill authorizing assessments at the level it deems

appropriate. Id.

The legislature exercises control over the State Bar's

powers in other ways in addition to its funding. For

example, in 1984, the legislature passed a statute prohib-

iting the State Bar from conducting any evaluations of

the credentials of a specific justice absent prior review

and authorization by the legislature. B&P Code

§ 6031(b). The legislature also requires the State Bar to

conduct the majority of its business in public meetings.

B&P Code § 6026.5. In 1988, the legislature mandated

additional reporting requirements for the State Bar, in-

eluding progress reports on all its programs, B&P Code

§ 6140.35, and periodic reporting on the state of attorney

discipline, B&P Code § 6140.2.

State courts have applied the California Tort Claims

Act to the State Bar, Engel v. McCloskey, 92 Cal.App.3d

870, 155 Cal.Rptr. 284 (1979), and held that its officers

may claim the public official confidential communications

privilege, Chronicle Publishing Co. v. Superior Court, 54

Cal.2d 548, 7 Cal.Rptr. 109 (1960). Nor is any of this

analysis a new aspect of California jurisprudence. In

rejecting a challenge to the constitutionality of the State

6

Bar Act sixty years ago, the California Supreme Court

upheld the legislature's exercise of the police power to

ereate the State Bar as a public, rather than a private

corporation. State Bar of California v. Superior Court, 207

Cal. 323, 278 P. 432 (1929).

The California Supreme Court in this case reaffirmed

that the state constitution, statutes and judicial decisions

“envision the bar as a governmental agency.” Keller v.

State Bar of California, 47 Cal.3d 1152, 1162, 255

Cal.Rptr. 542 (1989) (submitted as Appendix A to the

petition). As a governmental agency, the State Bar is

entitled to use its revenues for any purpose properly

within its statutory authority, subject to the limitations

on government speech applicable to all state agencies in

California to protect first amendment rights.’ The Califor-

nia Supreme Court rejected the application of Abood v.

Detroit Board of Education, 431 U.S. 209, 52 L.Ed.2d 261,

97 S.Ct. 1782 (1977) to the State Bar, correctly noting

that the restrictions placed on labor unions’ use of com-

pulsory dues have never been applied to governmental

agencies. 47 Cal.3d at 1169.

In reviewing the cases from other jurisdictions that had

applied the labor union analogy to their integrated bars,

the California Supreme Court noted important distine-

tions. None of the bar associations involved in those

cases, however, rest upon a constitutional and statutory

structure comparable to that of the California State Bar.

In Stanson b. Mott, 17 Cal.3d 206, 130 Cal.Rptr. 697 (1976), the

California Supreme Court limited agency participation in election

campaigns, barring agencies from expending public funds to promote

a partisan position. In this case, the California Supreme Court held

that the State Bar's actions in connection with the 1982 judicial

retention elections violated the Stanson rule, 47 Cal.3d at 1170-72.

7

None involves an extensive degree of legislative involve-

ment and regulation.” 47 Cal.3d at 1167.

III.

REASONS FOR DENYING THE WRIT

A. There Is No Conflict With Other Decisions

Petitioners urge this Court to review this case under

Supreme Court Rule 17(b), as a decision of a federal

question in a way in conflict with another state court of

last resort or of a Federal Court of Appeals. The conflict

cited by petitioners is created wholly by petitioners’

distortion of the substance of the California Supreme

Court’s holding; properly viewed, no conflict exists.

The California Supreme Court’s decision rests on the

unique structure and function of the State Bar of Califor-

nia; its characterization of the State Bar as a governmen-

tal agency derives solely from California law. In contrast,

no such analysis was performed in any of the cases cited

by petitioners. See Gibson v. Florida Bar, 798 F.2d 1564

(11th Cir. 1986); Romany v. Colegio de Abogados de Puerto

Rico, 742 F.2d 32 (Ist Cir. 1984); Hollar v. Government of

the Virgin Islands, 857 F.2d 163 (3d Cir. 1988); Arrow v.

Dow, 544 F. Supp. 458 (D.N.M. 1982); Petition of Chap-

man, 509 A.2d 753 (N.H. 1986).

The few facts concerning the status of the bars of these

other states that can be gleaned from the reported deci-

sions point toward a very different structure than that of

the State Bar of California. For example, in none of the

cases cited by petitioners do the funding and activities of

the integrated bars appear to be subject to control by an

elected legislature. See Gibson, 798 F.2d 1564; Romany,

742 F.2d 32; Hollar, 857 F.2d 163; Arrow, 544 F.

Supp. 458; Chapman, 509 A.2d 753. Indeed, the integrated

8

bars of Florida, the Virgin Islands, New Mexico, Wiscon-

sin and New Hampshire could not be subject to the type

of legislative control typically exerted over state adminis-

trative agencies, because they were created by court rule

and are subject only to the supervision of the judicial, and

not the legislative branch. See Gibson, 798 F.2d at 1565;

Hollar, 857 F.2d at 165; Arrow, 544 F. Supp. at 459;

Chapman, 509 A.2d at 760 (Souter, J., concurring); Le-

vine v. Heffernan, 864 F.2d 457, 458 (7th Cir. 1988). In

none of these cases does the record show a governing

board containing nonlawyer members appointed by

elected officials. Finally, nothing in the record of any of

these cases demonstrates that these other integrated bars

have been treated by the state as governmental agencies.

Comparison of the Wisconsin Bar described in Levine,

supra, 864 F.2d 457, in which the court upheld the

constitutionality of the integrated bar of Wisconsin, dem-

onstrates the difference in the policy choices among states

with respect to regulation of the legal profession and

justice system. Unlike the California State Bar, the Wis-

consin Bar does not have sole responsibility for adminis-

tering attorney discipline and continuing legal education.

Indeed, the challenge to the constitutionality of the Wis-

consin Bar was based on the reduction of its responsibili-

ties in regulatory and educational areas and its purported

transformation to an organization characterized as more

“private” in nature.

The different relationship between the State Bar of

California and the California Legislature places the State

Bar squarely within the state political system subject to

democratic controls not found in the descriptions of the

state bars in the cases cited above. This is a key distine-

tion for purposes of first amendment analysis. Unless a

legislative majority approves of the purposes and

9

amounts of its spending, the State Bar is not authorized

to assess fees. A legislative majority can contract and

expand the State Bar’s powers and provide redress not

only for members of the State Bar but also for members

of the general public who disagree with activities under-

taken by the Bar. Indeed, in 1984, objectors to the State

Bar's practice of evaluating sitting justices successfully

obtained passage of B&P 5 6031(b), which prohibits the

State Bar from evaluating specific justices without prior

legislative approval.

These are the safeguards of the democratic process that

justify treating government speech differently than that

of private associations such as labor unions.’ As Justice

Powell recognized in Abood:

Compelled support of a private association is funda-

mentally different from compelled support of govern-

ment. Clearly a local school board does not need to

demonstrate a compelling state interest every time it

spends a taxpayer’s money in ways the taxpayer finds

abhorrent. But the reason for permitting the Govern-

ment to compel the payment of taxes and to spend

money on controversial projects is tha the Govern-

ment is representative of the people.

431 U.S. at 259 n.13.

Unlike any other court in the reported decisions dis-

cussed by petitioners, the California Supreme Court spe-

cifically found the State Bar of California, like other state

The public purpose served by the government and the fact that its

ability to funetion would be severely undermined by granting line

item veto power to dissenting minorities also justify applying a

different standard to governmental expenditures. See Autenrieth v.

Cullen, 418 F.2d 586 (9th Cir. 1969), cert. denied, 397 U.S. 1036, 25

L.Ed.2d 647, 90 S.Ct. 1353 (1970) (rejecting first amendment chal-

lenge to military spending by opponents of Vietnam War).

10

agencies, is subject to substantial control by the state

legislature, the representatives of the people. Thus it is

clear that this finding requires the imposition of a stan-

dard different from that applied in cases not involving

governmental entities. This Court has never applied the

labor union analogy to government, but has in fact ap-

plied quite a different analysis. See infra, § B.

Petitioners concede that the issues of the propriety of

the State Bar's participation in the 1982 judicial retention

elections and the personal liability of State Bar officials

were adjudicated on state law grounds under Stanson v.

Mott, supra, 17 Cal.3d 206, and thus are not raised in the

petition. (Petition at 4 n.1) Because the Stanson rule

applies only to California governmental agencies, peti-

tioners thus concede that the State Bar’s governmental

status is a matter of state law. As the ruling of the court

below that the State Bar constitutes a government agency

rests purely on California law, the fact that courts in

other states may have arrived at different conclusions

concerning their integrated bars cannot be said to create

conflicting decisions on a federal question.

Petitioners attempt to manufacture a conflict on this

issue by asking this Court to view the integrated bar as a

generic institution that must always be treated akin to a

labor union regardless of the differences in structure,

purpose, and method of operation among the various state

bars. But this approach is simply an indirect way of

asking this Court to overrule the California Supreme

This issue was not even discussed in the reported cases, so it is

unclear how any of these courts would have ruled on the issue of their

state bar's governmental status. This disparity between the issues

presented in these cases and in this case further demonstrates the

lack of conflict on a federal question that would justify review by this

Court.

11

Court's holding that the State Bar is a unit of government

and not a private association. Such an approach does

violence to this Court’s expressed obligations to respect

the independence of state courts and allow them to

develop state jurisprudence unimpeded by federal inter-

ference. See Michigan v. Long, 463 U.S. at 1040-41. In

effect, it would federalize the integrated bar.

The only federal question presented by this case is what

limits the first amendment rights of dissenters place on

the activities of a governmental agency. This is not an

issue that was decided, or even addressed, by any of the

cases cited by petitioners as in conflict with the decision

of the California Supreme Court.

B. The Only Federal Question Implicated By The

California System Has Long Been Settled

1. The First Amendment Does Not Restrain Govern-

ment Speech Rationally Related To A Legitimate

Governmental End

Petitioners alternatively urge review of this case under

Supreme Court Rule 17 (e) as raising important issues of

federal law that should be resolved by this Court. How-

ever, this Court already has addressed and consistently

has rejected first amendment challenges by opponents of

Labor law is highly federalized by the National Labor Relations

Act and its amendments in the Labor Management Relations Act, 29

U.S.C. $§ 141 et seq., as well as by the Railway Labor Act, 45 U.S.C.

151 et seq. State labor regulation is limited by broad principles of

federal preemption, see, e. g., Garner v. Teamsters Local 776, 346 U.S.

485, 98 L.Ed. 228, 74 S.Ct. 161 (1953). Thus, the states never have

been free to develop their own concepts of unionism outside the long

shadow of federal law. By contrast, Congress left the field of regula-

tion of the practice of law entirely to the states.

12

governmental spending, and the petition demonstrates no

reason for this Court to revisit the issue.

In American Party of Texas v. White, 415 U.S. 767, 39

L.Ed.2d 744, 94 S.Ct. 1296 (1974) this Court rejected an

equal protection challenge based on speech and associa-

tional rights to the Texas legislature’s use of revenues to

reimburse the two major political parties for primary

expenses. This Court again rejected a taxpayer challenge

to government funding of speech in Regan v. Taxation

with Representation of Washington, 461 U.S. 609, 76

L.Ed.2d 129, 103 S.Ct. 1997 (1983), holding that govern-

ment may spend tax revenues on speech activities subject

only to a showing that the expenditure is rationally

related to a legitimate governmental objective. As the

Court noted in FCC v. League of Women Voters of Califor-

nia, 468 U.S. 364, 82 L.Ed.2d 278, 104 S.Ct. 3106 (1984),

virtually every legislative appropriation will to some ex-

tent involve a use of public money as to which some

taxpayers may object. “Nevertheless, this does not mean

that those taxpayers have a constitutionally protected

right to enjoin such expenditures.” 468 U.S. at 385 n.16.

Miller v. California Commission on the Status of Women,

151 Cal.App.3d 693, 198 Cal.Rptr. 877, appeal dismissed

for want of jurisdiction, 469 U.S. 1133, 83 L.Ed.2d 15, 105

S.Ct. 64 (1984), a case involving substantially similar

factual and legal issues to those presented here, illus-

trates how these well-settled principles apply to this case.

In Miller, plaintiffs challenged a governmental agency's

speech addressing the status of women, postulating “their

right not to enhance the Commission’s speech by tax

support.” 151 Cal.App.3d at 700. The California Court of

Appeal rejected this challenge, noting that if the govern-

ment cannot appoint a commission to speak on a contro-

versial topic without implicating dissenting taxpayers’

8

13

first amendment rights, it would lose its ability to govern.

151 Cal. App. 3d at 701. The Court noted the availability of

means within the democratic process for dissenters to

seek redress, including speaking out at the Commission’s

public meetings and using the electoral process to defeat

legislators who appointed the commissioners and sup-

ported their positions. Jd. at 702. This Court dismissed

the appeal for want of jurisdiction. The present petition

retraces that very same ground, without raising any

distinguishing factual or legal issues.

2. All Government Speech Is Subject To The Same

Standard Regardless Of The Source Of The Reve-

nue Spent

The fact that the license fees at issue in this ease are

not drawn from the entire populace does not affect the

first amendment analysis, which derives not from the

source of the revenue that is spent, but from the fact that

the government spending itself is subject to the controls

of the democratic process. See Abood, supra, 431 U.S. at

259 n.13 (Powell, J., eoneurring). In United States v. Lee,

"Indeed, in the labor union cases, this Court focussed on the

purpose of the compelled contributions, and the nature of the entity,

rather than relying on the source of the funding as the key to its

analysis. For example, in Ellis v. Brotherhood of Railway, Airline d

Steamship Clerks, 466 U.S. 435, 80 L.Ed.2d 428, 104 S.Ct. 1883

(1984), the Court looked to the purpose of compulsory union support

under the Railway Labor Act and found it to be elimination of the

“free rider” effect. 466 U.S. at 447. Although in Abood the Court

refused to distinguish between expenditures by unions in the private

sector and those by unions in the public sector, this was because the

purpose justifying compulsory support was substantially similar in

both instances. See 431 U.S. at 232 (union security issue the same in

both private and publie sector). Accordingly, expenditures from

eompulsory dues in both sectors must be limited to those germane to

this statutory purpose. (footnote continued on next page)

14

455 U.S. 252, 71 L.Ed.2d 127, 102 S.Ct. 1051 (1982), this

Court rejected a first amendment challenge to payment of

social security tax based on the challenger’s objection to

governmental use of the revenues. This Court found no

principled basis to distinguish between the use of general

taxes and the use of taxes from a more narrowly drawn

pool, such as employers subject to social security taxes,

for the purpose of first amendment analysis. 455 U.S. at

259-60. See also Erzinger v. Regents of the University of

California, 137 Cal.App.3d 389, 187 Cal.Rptr. 164 (1982),

cert. denied, 462 U.S. 1133, 77 L.Ed.2d 1368, 103 S.Ct.

3114 (1983) (rejecting first amendment challenge to use

of mandatory student health fees for abortion counsel-

ing). Under federal law, a governmental agency may use

unrestricted revenue whether derived from taxes, dues,

fees, tolls, tuition, donation or other sources for any

purposes within its authority. The same is true in Califor-

nia, subject to the additional restrictions imposed by

Stanson v. Mott, supra.

C. This Court Should Not Reach Out To Take A Case

So Dependent On Issues Of State Law

The decision below is of limited impact beyond Califor-

nia. As the California Supreme Court affirmed the consti-

tutionality of the State Bar's expenditures based on the

State Bar's status as an agency of the State of California,

the state law issues are inextricably intertwined with the

federal constitutional issue. Thus, not only is review of

this ease not justified under Supreme Court Rule 17(e),

The purpose of compulsory support of government is, of course, far

broader, extending well beyond support of any one interest group.

L. Tribe, American Constitutional Law § 12-4 at 807 (1988) (distin-

guishing government speech from compelled support of union

speech).

15

but also prudential concerns of due deference to state

court interpretation of state law counsel against it.“

There is no need for a federal rule mandating uniform

treatment of all state bars. States should be free to make

policy choices on how to regulate the legal profession in

response to their diverse circumstances, as they are free

to formulate other legal relationships. See P. Bator,

D. Meltzer, P. Mishkin, D. Shapiro, Hart & Wechsler’s The

Federal Courts and the Federal System at 533 (3d ed.

1988) Treatment of state bars should be responsive to

and reflective of this diversity.

Because of this controlling state law issue, the issues presented by

this ease do not address any questions left open by this Court's prior

examination of a challenge to an integrated bar. In Lathrop v.

Donahue, 367 U.S. 820, 6 L.Ed.2d 1191, 81 S.Ct. 1826 (1961), while

upholding the conetitutionality of the integrated bar of Wisconsin,

ereated by the Wisconsin Supreme Court as an “association...

composed of persons licensed to practice law in this state, 367 U.S.

at 825, this Court refused to rule on the constitutionality of its

expenditures in the absence of a well-developed factual record. No

finding that the Wisconsin Bar constituted a unit of state government

was before the Court, and the various members of the Court appeared

to assume otherwise. See, e. g., 367 U.S. at 881-82 (Douglas, J.,

dissenting) (lawyers should be free not to join an association of other

lawyers). nf

Justice Harlan’s discussion of government speech standards as a

useful analogy for viewing the case demonstrates that he did not view

the case as actually presenting this issue, and his formulation of

government speech standards went unchallenged by either the plural-

ity or the dissent. See 367 U.S. at 858 (Harlan, J., concurring)

(taxpayer's objections to views governmental agency presents to the

legislature at public expense do not implicate first amendment).

16

IV.

CONCLUSION

The decision of the California Supreme Court presents

neither a conflict with other reported decisions on the

same issue, nor an important question of federal law

requiring resolution by this Court. It rests squarely on the

state laws that create the State Bar of California as an

arm of government and on well-established federal and

state principles controlling government speech. The def-

erence this Court repeatedly urges toward state court

interpretation of state constitutional and regulatory

schemes, and the need to avoid unnecessary constitu-

tional decisions, counsel against the granting of the peti-

tion for certiorari. Accordingly, respondents respectfully

request this Court to deny the petition for writ of certio-

rari to the California Supreme Court.

DATED: JUNE 21, 1989 Respectfully submitted,

HERBERT M. ROSENTHAL HUFSTEDLER, MILLER,

DIANE C. Yu * Kaus & BEARDSLEY

555 Franklin Street RoBERT S. THOMPSON

San Francisco, California LAURIE D. ZELON

(415) 561-8200 Mary E. HEALY

* Counsel of Record for the JUDITH R. STARR

State Bar of California 355 S. Grand Avenue

45th Floor

Los Angeles, California

90071

(213) 617-7070

APPENDIX A

OO i”.

a * 4

* ee —

8

A-1

APPENDIX A

§ 6140.1. Proposed baseline and proposed final budg-

ets; contents; fiscal bill; submission of docu-

ments; budget change proposals

The State Bar annually shall submit its proposed base-

line budget for the following fiscal year to the appropriate

fiscal committees of the Legislature and the Joint Legis-

lative Budget Committee by November 15, and its pro-

posed final budget by February 15, so that the budget can

be reviewed and approved in conjunction with any bill

that would authorize the imposition of membership dues.

Each proposed budget shall include the estimated reve-

nues, expenditures, and staffing levels for all of the

programs and funds administered by the State Bar. Any

bill that authorizes the imposition of membership dues

shall be a fiseal bill and shall be referred to the appropri-

ate fiscal committees; provided, however, that the bill may

be approved by a majority vote.

The State Bar shall submit the budget documents in a

form comparable to the documents prepared by state

departments for inclusion in the Governor's Budget and

the salaries and wages supplement. In addition, the bar

shall provide supplementary schedules detailing operat-

ing expenses and equipment, all revenue sources, any

reimbursements or interfund transfers, fund balances,

and other related supporting documentation. The bar

shall submit budget change proposals with its final

budget, explaining the need for any differences between

the current and proposed budgets.

(Added by Stats.1986, e. 2, § 2, eff. February 4, 1986.

Amended by Stats.1986, e. 1510, § 2; Stats.1987, e. 688,

§ 3; Stats.1988, e. 1149, § 2.5)

Underline indicates changes or additions by amendment

A-2

§ 6140.2. Reports to judiciary committees on procedural

changes and improvements in disciplinary sys-

tem; reduction of complaints in inventory; geal

for timely disposition of complaints

(a) On or before April 1, 1986, and June 1, 1986, the

State Bar shall submit reports to the Judiciary Commit-

tees of the California State Senate and Assembly on the

procedural changes and improvements which have been

made in the State Bar disciplinary system and what effect

these changes have had on the number of complaints

pending, the time required to process these complaints,

and the progress made in reducing the backlog of

complaints.

(b) On or before December 31, 1987, the State Bar

shall reduce by 80 percent the complaints within its

inventory as of March 31, 1985, which have been received

but have not resulted in dismissal, admonishment of the

attorney involved, or filing of formal charges by State Bar

Office of Trial Counsel. This reduction shall be accom-

plished by dismissal, admonishment of the attorney in-

volved, or recommendation by the State Bar for

disposition by the Supreme Court.

(e) The State Bar shall set as a goal by December 31,

1987, the improvement of its disciplinary system so that

no more than six months will elapse from the receipt of

complaints to the time of dismissal, admonishment of the

attorney involved, or the filing of formal charges by the

State Bar Office of Trial Counsel.

(Added by Stats.1986, e. 2, § eff. February 4, 1986.)

A-3

§ 6140.5. Client security fund; establishment; payments;

administration; funding

(a) The board may establish and administer a Client

Security fund to relieve or mitigate pecuniary losses

caused by the dishonest conduct of those active members

of the State Bar. Any payments from the fund shall be

discretionary and shall be subject to such regulation and

conditions as the board shall prescribe. The board may

delegate the administration of the fund to the disciplinary

board provided for in Section 6086.5, or to any board or

committee created by the board of governors.

(b) Commencing January 1, 1972, the board may in-

crease the annual membership fees fixed by it pursuant to

Section 6140 by an additional amount per active member

not to exceed ten dollars ($10) in any year, the additional

amount to be applied only for the purposes of the fund.

(Added by Stats.1971, e. 1338, p. 2642, § 3.)

§ 6140.35. Progress reports; duration of section

(a) The board shall annually present written and oral

progress reports on all State Bar programs to the Judici-

ary Committees of the Senate and Assembly, as directed

by those committees. N

(b) This section shall remain in effect until January 1.

1992, and as of that date is repealed, unless a later

enacted statute, which is chaptered before January 1

1992, deletes or extends that date.

(Added by Stats.1988, e. 1159, § 29.)

A4

§ 6200. Establishment of system and procedure; applica-

bility of article; voluntary or mandatory nature;

rules; immunity of arbitrator; powers of

arbitrator

(a) The board of governors shall, by rule, establish,

maintain, and administer a system and procedure for the

arbitration of disputes concerning fees charged for pro-

fessional services by members of the State Bar or by

members of the bar of other jurisdictions. The rules may

inelude provision for a filing fee in such amount as the

board * * * may, from time to time determine.

(b) This article shall not apply to any of the following:

(1) Disputes where the attorney is also admitted to

practice in another state, and he or she maintains no office

in the State of California, and no material portion of the

services were rendered in the State of California.

(2) Claims for affirmative relief against the attorney

for damages or otherwise based upon alleged malpractice

or professional misconduct, except as provided in subdivi-

sion (a) of Section 6203.

(3) Disputes where the fee to be paid by the elient or

on his or her behalf has been determined pursuant to

statute or court order.

(e) Arbitration under this article shall be voluntary

for a client and shall be mandatory for an attorney if

commenced by a client.

(d) The board of governors shall adopt rules to allow

arbitration of attorney fee disputes under this article to

proceed under arbitration systems sponsored by local bar

associations in this state. Rules of procedure promulgated

by * * * loeal bar associations are subject to review by the

board * * * to insure that they provide for a fair, impar-

tial, and speedy hearing and award. In adopting or re-

A-5

viewing these rules, the board * * * may provide for one

lay member of any arbitration panel of three arbitrators.

(e) In any arbitration conducted pursuant to this arti-

cle by the State Bar or by a local bar association, pursu-

ant to rules of procedure approved by the board of

governors, the arbitrator or arbitrators, as well as the

arbitrating association and its directors, officers, and

employees, shall have the same immunity which attaches

in Judicial proceedings.

(f) In the conduct of arbitrations under this article the

arbitrator or arbitrators may do allof the following:

(1) Take and hear evidence pertaining to the

proceeding.

(2) Administer oaths and affirmations.

(3) Compel, by subpoena, the attendance of witnesses

and the production of books, papers, a documents pertain-

ing to the proceeding.

(Added by Stats.1978, e. 179, p. 2249, § 1. Amended by

Stats. 1984, e. 825, § 1.)

§ 6046. Examining committee; powers

The board may establish an examining committee hav-

ing the power.

(a) To examine all applicants for admission to practice

law.

(b) To administer the requirements for admission to

practice law.

(e) To certify to the Supreme Court for admission

those applicants who fulfill the requirements provided in

this chapter.

The examining committee shall be comprised of 19

members, 10 of whom shall be members of the State Bar

A-6

or judges of courts of record in this state and nine of

whom shall be public members who have never been

members of the State Bar or admitted to practice before

any court in the United States. At least one of the

attorney members shall have been admitted to practice

law in this state within three years from the date of their

appointment to the examining committee.

(Amended by Stats.1986, e. 1392, § 1; Stats.1988, e. 1159,

§ 2.3.)

§ 8287. Assistance from board of governors of bar

The Board of Governors of the State Bar shall assist

the commission in any manner the commission may re-

quest within the scope of its powers or duties.

(Formerly § 10307, added by Stats.1953, e. 1445, p. 3037,

§ 2. Renumbered § 8287 and amended by Stats.1984, e.

1335, § 2.)

§ 68725. Assistance and information

State and local publie bodies and departments, officers

and employees thereof, and officials and attaches of the

courts of this State shall co-operate with and give reason-

able assistance and information to the commission and

any authorized representative thereof, in connection with

any investigations or proceedings within the jurisdiction

of the commission.

(Added by Stats.1961, e. 564, p. 1683, § 1.)

APPENDIX B

cc

— — —— —

— ce —

B-1

APPENDIX B

HUFSTEDLER, MILLER, CARLSON & BEARDSLEY

ROBERT S. THOMPSON

DENNIS M. PERLUSS

LAURIE D. ZELON

Mary E. HEALY

700 South Flower Street

16th Floor

Los Angeles, California 90017-4286

(213) 629-4200

HERBERT M. ROSENTHAL

TRUITT A. RICHEY, JR.

MAGDALENE Y. O’ROURKE

555 Franklin Street

San Francisco, CA 94102-4498

(415) 561-8200

Attorneys for Defendants

SUPERIOR COURT OF CALIFORNIA

COUNTY OF SACRAMENTO

EpDIE KELLER, et al.,

Petitioners and Plaintiffs,

vs.

STATE BAR OF CALIFORNIA, et al.,

Respondents and Defendants.

CIV. NO. 307168

NOTICE OF MOTION FOR SUMMARY JUDGMENT;

MEMORANDUM OF POINTS AND AUTHORITIES;

AND DECLARATIONS IN SUPPORT THEREOF

Date: December 5, 1983

Time: 9:00 a.m.

Place: Department 21

B-2

TO ALL PARTIES AND THEIR ATTORNEYS OF

RECORD:

NOTICE IS HEREBY GIVEN that on December 5,

1983, at 9:00 a.m., or as soon thereafter as this matter

may be heard, in Department 21 of the above-captioned

Court, at 720 Ninth Street, Sacramento, California, de-

fendants State Bar of California, Anthony M. Murray,

Patricia Greene, Girt K. Hirschberg, Leland R. Selna,

Jr., Geoffrey Van Louks, Thomas W. Eres, John J. Co-

stanzo, George W. Couch, III, Burke M. Critehfield.

Thomas R. David, Dixon Q. Dern, Ruth Chureh Gupta,

Dale E. Hanst, Leonard Herr, Robert A. Hine, Marta

Macias, Phillip Schafer, Craig A. Silberman, Daniel J.

Tobin, James D. Ward and Joon Hee Rho will move this

Court for an order granting summary judgment in their

favor. Defendants will move, in the alternative, for sum-

mary adjudication of issues, or for judgment on

pleadings.

B-3

This motion will be based on this Notice of Motion, the

Memorandum of Points and Authorities and Declarations

in Support Thereof, and all other papers and pleadings on

file in this action.

DATED: November 15, 1983.

Respectfully submitted,

HUFSTEDLER, MILLER, CARLSON

& BEARDSLEY

RoBErRT S. THOMPSON

DENNIS M. PERLUSS

LAURIE D. ZELON

Mary E. HEALY

HERBERT M. ROSENTHAL

Truitt A. RICHEY, JR.

MAGDALENE Y. O’RowurRKE

By LauRIE D. ZELON

Attorneys for Defendants

7 B-4

MEMORANDUM OF POINTS AND AUTHORITIES

I. INTRODUCTION

Defendants, the State Bar of California and members

of the Board of Governors of this publie agency, seek an

order of this honorable court granting judgment on behalf

of the agency and on behalf of each individual member. In

the alternative, defendants’ motion seeks a judgment on

the pleadings or an order that all dispositive issues now

raised by plaintiffs’ complaint are determined in defend-

ants’ favor. If summary judgment is granted the matter

will be concluded. If the alternative motions are granted

plaintiffs may seek leave to amend.*

Plaintiffs’ complaint seeks to enjoin all activity of the

State Bar encompassed in the following categories:

(a) lobbying the California Legislature;

(b) submitting briefs amicus curiae;

(e) financing meetings of the Conference of

Delegates;

(d) publicizing the speeches by the President of

the State Bar; and

(e) finaneing the public information project on

judicial retention.

Complaint, © 6.

It also seeks to hold the individual defendants liable

for past expenditures of the State Bar utilized to finance

its activities in these categories. Plaintiffs seek reim-

bursement of all fees expended for “political and ideologi-

eal purposes (Prayer, © 3), without further specifying

those activities.

»We do not coneede that leave to amend should be granted.

B-5

We demonstrate in more detail in the following por-

tions of this memorandum that:

1. the State Bar is an agency of the California

state government created by Article VI, §9 of the

California Constitution and implementing

legislation;

2. because the State Bar is an agency of govern-

ment it has all powers expressly or implicitly granted

it by the Constitution and statute, limited only by

restrictions imposed by the Constitution. Stanson v.

Mott, 17 Cal.3d 206 (1976);

3. each category of State Bar activity and each

specific activity of the State Bar mentioned in the

complaint is expressly or implicitly authorized by the

California Constitution and the State Bar Act. This

authorization is confirmed annually by the Legisla-

ture in enacting legislation providing for financing

the State Bar after receiving the agency's proposed

budget for the ensuing year;

4. no constitutional restriction preeludes the

State Bar from engaging in the categories of activity

described in the complaint or the specific functions

mentioned in it. To the contrary, two decisions of the

United States Supreme court issued since the com-

plaint was filed reject the constitutional attack

mounted by plaintiffs. Regan v. Taxation with Repre-

sentation of Washington, US. 76 L.Ed. 2d

129 (1983); Common Cause v. Bolger, 2—

77 L. Ed. 2d 280 (1983);

5. the authorities upon which plaintiffs relied in

their unsuccessful motion for preliminary injunction

are inapplicable to agencies of government. They are

pertinent only to the affairs of private organizations;

and

B-6

6. a controlling decision of the California Su-

preme Court mandates rejection of plaintiffs’ claim

that the individual members of the Board of Gover-

nors of the State Bar are liable. Stanson v. Mott,

supra.

Il. PROCEEDINGS TO DATE

Plaintiffs’ complaint seeking declaratory and injunctive

relief was filed on October 25, 1982. Subsequent amend-

ments, adding plaintiffs, have been filed without changes

in the substantiy> allegations. As set forth above, plain-

tiffs challenged the expenditures of the State Bar for

“political and ideological causes,” and sought to enjoin

such expenditures and to require individual members of

the Board of Governors to refund fees used for those

purposes. Except for the five items listed in paragraph 6

of the Complaint, and set out above, plaintiffs failed to

state with specificity the activities to which they object.

Rather, they seek relief banning all such use of fees,

whether or not such uses are related to matters within the

scope of the Bar's statutory and constitutional

authorization.

On October 26, 1982, pursuant to plaintiffs’ motion, a

Temporary Restraining Order and Order To Show Cause

was issued. Although plaintiffs sought broader relief, the

TRO only prohibited the expenditure of named plaintiffs’

fees to promote “particular criteria regarding the evalua-

tion of judges in judicial retention elections.” Order,

October 25, 1982, at 2.

Subsequently, plaintiffs’ motion for preliminary injune-

tion was brought on for hearing on January 28, 1983. On

March 4, 1983, the Court denied that motion and dis-

ee —

B-7

solved the temporary restraining order then in effect.*

The Court declined to grant injunctive relief, finding it

unlikely that plaintiffs would prevail. Order at 2. The

Court also found that plaintiffs had failed to demonstrate

irreparable injury, Id. at 3.

Since that hearing, plaintiffs have propounded discov-

ery requests to defendants, to which responses have been

served.

III. THE INJUNCTIVE RELIEF REQUESTED BY

PLAINTIFF IS NOT AVAILABLE AS A MAT-

TER OF LAW

As will be demonstrated below, plaintiffs’ requested

relief is directly contrary to that approved even by the

authority on which they rely. Further, and more impor-

tantly, plaintiffs ignore the very relevant distinctions

between the California State Bar, a public agency of the

State of California with both statutory and constitutional

authority, and a private organization formed to serve the

economic interests of its membership. This distinction is

one recognized as a matter of federal and California law.

As a result, plaintiffs request this Court to grant relief

contrary to relevant federal and state authority. There-

fore, summary judgment should be granted.

A. The State Bar is an Agency of State Government

As set forth in Defendants’ Memorandum of Points and

Authorities in opposition to the Motion for Preliminary

Injunction (“Defendants’ Memorandum’),** the defen-

»On December 2, 1982, the Court entered an order continuing the

hearing on the preliminary injunction and ordering that all fees paid

by named plaintiffs be held in a separate account pending that

hearing.

**A copy of that Memorandum is attached hereto for the conve-

nience of the Court as Exhibit A.

B-8

dant State Bar is a publie agency of the State of Califor-

nia, and its conduct is governed by the rules applicable to

California state agencies. Defendants’ Memorandum at

pp. 14-15. Thus, its expenditures are proper to the extent

that “they are authorized, explicitly or implicitly, by

legislative enactment.” Stanton v. Mott, 17 Cal.3d 206, 213

(1976). As such, the State Bar is a substantially different

entity than the union to which plaintiffs seek to compare

it. Its funetion and purposes are public, not private. It is a

part of state government and the authorization for its

expenditures and functions is both explicit and implicit.

B. The State Bar May Engage in All Aetivities

Expressly or Implicitly Authorized by The State

Constitution or Statute

I. The State Bar Has Broad Explicit Authorization

The State Bar has broad legislative authorization

under Bus. & Prof. Code 55 6001, 6028, and 6031. That

latter section provides:

“The Board may aid in all matters pertaining to the

advancement of the science of jurisprudence or to the

improvement of the administration of justice, inelud-

ing, but not by way of limitation, all matters that may

advance the professional interests of the members of

the State Bar and such matters as concern the

relations of the Bar with the public.”

In addition, the State Bar is established by the Consti-

tution of the State of California. Article VI, §9. This

constitutional provision was approved by the voters in

1960. See Defendants’ Memorandum at pp. 6-8.

Finally, a detailed report of the expenditures and

activities of the State Bar is submitted to the Legislature

on an annual basis in seeking legislative approval of fees.

The Legislature approves those activities in setting the

permissible fees to be charged by the State Bar each year

B-9

on the basis of this submission. See, e.g., material submit-

ted to Legislature attached as Exhibits 1-2 to Defend-

ants’ Memorandum.

(2) The State Bar Has Implicit Authorization For The

Challenged Activities

a) Lobbying

Lobbying of the Legislature concerning issues within

the scope of Bus. & Prof. Code § 6031 has the explicit and

implicit approval of the Legislature. It is explicitly ap-

proved on an annual basis by means of the fees bill, as set

forth above. It is implicitly approved by prevailing Cali-

fornia case law, exemplified by the leading case of Stanson

v. Mott, supra. In that case, the Court specifically ap-

proved lobbying efforts even though such efforts might be

for causes with which members of the publie might disa-

gree. 17 Cal. 3d at 218. Despite this authority, however,

plaintiffs would have this Court bar the State Bar from all

lobbying activities outside of the areas of admissions,

discipline, and fees despite the specific authorization

which Bar has been given. Complaint, © 6.

That California law clearly permits public agencies to

lobby is beyond challenge. See Crawford v. Imperial Irri-

gation Dist., 200 Cal. 318 (1927); Lehane v. City & County

of San Francisco, 30 Cal. App. 3d 1051 (1972). Indeed,

the Lehane case makes clear that lobbying is permitted

even though the individual taxpayer objects to the posi-

tion which the state agency is taking.

“If a taxpayer can restrain a government entity from

lobbying for legislation to which the taxpayer is

opposed, the power of the government entity to lobby

is a power which can never be exercised, for in

practice some taxpayer will surely hold a contrary

view. If the taxpayer does not agree with the decision

of his elected representatives in this area, as in

B-10

others, his recourse is to vote against them.” 30 Cal.

App. 3d at 1056.

See also DeMille v. American Federation of Radio Art-

ists, 31 Cal. 2d 139 (1947) (majority rule permits imposi-

tion of a tax despite disagreement by a taxpayer with the

purposes for which the tax is levied).

b) Dissemination of Information To The Public

Publie agencies may also expand funds to inform poten-

tial voters about issues with which they are familiar, so

long as a fair presentation of facts is made. See Stanson,

supra, 17 Cal. 3d at 221 n.6; 58 Ops. Cal. Atty. Gen. 29

(1975); 51 Ops. Cal. Atty. Gen. 190 (1968); 42 Ops. Cal.

Atty. Gen 25 (1963); 35 Ops. Cal. Atty. Gen. 112 (1960).

Plaintiffs seek specifically to bar such activity by ob-

jecting to the education project on the judiciary. Com-

plaint 76. However, plaintiffs do not allege anywhere in

their complaint that the materials assembled for that

project are anything other than a fair presentation of

facts and of such style and tenor that they constitute a

proper attempt to inform the voters about issues concern-

ing which the Bar has special knowledge and unique

responsibilities. Rather, plaintiffs merely assert that the

project is political or ideological and thus improper. That

bare assertion is incorrect.

The relevant cases cited above permit, and may even

require, the State Bar to edueate the public in this area.

The materials in the project present information to the

publie, without exhorting the public to vote for a specific

position. The materials used were attached to the com-

plaint as Exhibit E; the plaintiffs had access to those

materials and an opportunity to review them, but could

find no grounds on which to challenge them under Califor-

nia law. If this Court should analyze these materials,

despite the absence of any specific allegations, it will find

— — ed *

—

— —— —

B-11

the materials to be fair and balanced, not improperly

motivated or styled.

e) Other Activities

The State Bar’s authority within other major chal-

lenged areas is established by California law. Plaintiffs

object to substantially all of the State Bar’s other activi-

ties, some specifically, but most generally. The Bar has

already addressed such of those issues as plaintiffs identi-

fied in their complaint in Defendants’ Memorandum at

17-28, and respectfully refers the Court to that

discussion.

Plaintiffs seek to, but may not, stop the State Bar from

engaging in activities because plaintiffs apparently disa-

gree with the positions taken by the Board of Governors,

chosen in a democratic manner to set such policies. Such

disagreement does not permit the silencing of the entire

bar. See Lehane, supra, 30 Cal.App.3d at 1056. This

doctrine has been clearly recognized outside of California

as well.

“It is true that [a member of the State Bar] is

required to contribute to the cost of the operation of

the State Bar, and he may not agree with all of the

policies as determined by its Board of Governors.

The Board of Governors is selected in a democratic

manner. It is frequently true in a democratic society

that the wishes of the majority are overruled, even

though they must contribute to the cost of the pro-

grams carried forward by the majority.“ Sams v.

Olah, 225 Ga. 497, 505 (Ga. Sup. Ct. 1969).*

In Sams, the court concluded that the test for illegal

expenditures is not a broad test of whether the funds are

* A copy of this opinion is attached hereto for the convenience of

the Court as Exhibit B.

B-12

being spent contrary to the individual’s wishes, but rather

whether the funds were spent for the authorized purposes

of the State Bar. 225 Ga. at 507. By this reasoning, the

most plaintiffs could seek to bar would be those activities

demonstrably outside of the activities authorized by the

Constitution and the Legislature.

However, plaintiffs’ approach is categorical; the de-

fense may similarly be categorical. So long as the State

Bar engages in activities which are appropriate under

California law, as they do, plaintiffs are not entitled to the

extremely broad relief they request. Plaintiffs seek no

limited, alternative relief, nor do they allege that author-

ity might exist for any specific, focused relief such as the

rebate procedure approved in Abood v. Detroit Bd. of

Educ., 431 U.S. 209 (1976). However, such a procedure

would not be authorized by authority relevant to this case,

even had plaintiffs requested it. As a result, their com-

plaint must be dismissed.

C. The Challenged Activities Are Constitutional

Defendants’ position is further authorized by recent

decisions of the United States Supreme Court. The Court

has clearly stated that the government may, in certain

instances, use tax dollars to subsidize issue-oriented

speech. There need be no compelling governmental inter-

est to support this decision, but only a rational relation-

ship to legitimate governmental purposes. Regan „.

Taxation With Representation of Washington, U.S.

— 76 L.Ed.2d 129 (1983). (A copy of this opinion is

attached hereto for the convenience of the Court as

Exhibit C.) The same test is mandated by the applicable

California authority cited above, and governs this case.

In addition the Court last term affirmed without opin-

ion the decision of a three-judge District Court in Com-

mon Cause v. Bolger, U.S. 77 L.Ed.2d 280

—U— 2 — ae

—

— — a

B-ʃ 13

(1983). In that ease, the Court held that incumbent

legislators may use the franking privilege without violat-

ing the constitutional rights of voters and nonineumbents.

The court declined to apply a strict scrutiny analysis,

because any restriction on First Amendment rights was

indirect and, because it applied to all non-incumbents,

was not content-related. The same is true here; any

restriction is indirect and applies to all who disagree with

the majority position on a broad spectrum of issues, not to

any particular position.*

The State Bar speaks as a government agency and must

be governed by this law in all respects. Although plaintiffs

allege that the State Bar purports to represent the views

of its individual members, that claim is demonstrably

without basis in fact and is merely an unsupportable

eonclusion. The State Bar speaks as a constitutional and

statutory body. See Affidavits of Peter Jensen and Ter-

rance Flanigan, lobbyists for the State Bar, attached

hereto as Exhibits E and F; State Bar’s Answers to

Plaintiffs’ Interrogatory No. 3, attached hereto as Ex-

hibit G.

D. The Authorities Previously Relied On by Plaintiffs

Are Inapplicable

Plaintins have relied primarily on Abood v. Detroit Bd.

of Educ., 431 U.S. 209 (1976), and Arrow v. Dow, 544 F.

Supp. 458 (D. N. M. 1982) for their claim for relief in this

case. However, as set forth by defendants in Defendants’

Memorandum at 28-33, that authority does not govern

here.

Abood governs where mandatory fees are imposed by a

private organization, in that case, a union. The State Bar,

* A copy of this opinion is attached hereto for the convenience of

the Court as Exhibit D.

B-14

in contrast, is a legislatively and constitutionally author-

ized agency of the government of the State of California.

The difference is both substantial and vital. Integrated

state bars, as governmental agencies, must be treated

differently from private organizations as a matter of

federal constitutional law. State Bar of Texas v. United

States of America, No. CA 3-81-9536-C, United States

District Court for the Northern District of Texas, Dallas

Division, March 25, 1983 (Slip opinion at 4).* See also

Sams v. Olah, 225 Ga. 497, 506 (Ga. Sup. Ct. 1969)

(integrated state bar is not a labor organization).

There are other differences as well. The private organi-

zation in Abood set its own dues; in contrast, the fees of

the State Bar are set by the California State Legislature.

The difference between private assessments and legisla-

tively approved taxes is substantial.

In addition, the purpose of the State Bar, as defined by

its establishing authority, is broad; the Bar is instructed

to undertake substantial duties in the public interest. In

contrast, a labor union serves limited economie interests

of its membership; in some situations, those members may

be able, through the bargaining process, to extract from

non-members a pro rata share of the expenses connected

with the economic benefits those non-members receive.

See Abood, supra, 431 U.S. at 222. In other instances, the

union may, through bargaining, be able to require mem-

bership. In such cases, mandatory dues may only be spent

for functions related to the benefits provided. See Ellis v.

Brotherhood, 685 F.2d 1065 (9th Cir. 1982), cert. granted

om Cham (a

* A copy of this opinion is attached hereto for the convenience of

the Court as Exhibit H.

**The Court in Ellis declined to take a narrow view of those

activities which provided benefits to members and for which they

—— OES —

B15

Even if the union analogy were apposite, however.

Abood specifically rejected the relief requested herein.

Plaintiffs therefore rely on Arrow v. Dow, supra, to pro-

vide the nexus to the relief they request. However, Arrow

is not only inconsistent with the decisions of the Califor-

nia Supreme Court cited above, but also, by permitting

broad relief prohibiting all “political” activities, violates

the rule set out in Abood.

The broad reading adopted by the Arrow court has been

rejected in the recent decision of the Florida Supreme

Court. In The Florida Bar Re: Amendment to Integration

Rule, No. 61,424, decided September 22, 1983, the Su-

preme Court held that political activity by its bar, estab-

lished by rule of Court, was within the defined purpose of

the bar “to improve the administration of justice, and to

advance the science of jurisprudence.” Opinion at 2. The

Court, in determining whether the challenged activities

were germane, looked broadly at purpose, as the Arrow

court failed to do. (A copy of the Opinion is attached

hereto for the convenience of the Court as Exhibit I.)

Arrow is also inapplicable to the California State Bar

factually, in that it involves a bar association established

by rule of court, not by constitutional and legislative

authorization. The California State Bar is, however, a

unique institution among unified state bars, as it is a state

agency, with both constitutional and legislative authoriza-

tion, and subject to legislative oversight. It is neither a

private organization, nor an organization created under

the limited authority of rule of court. The New Mexico

Bar does not have the broad mandate imposed on the

California Bar. As the scope of authorized activity is

central to the Abood analysis, this difference is substan-

could be foreed to contribute. This should be contrasted with the

extremely limited view of scope sought to be imposed by plaintiffs in

this case.

B-16

tial and indicates that Arrow cannot control here. Thus,

plaintiffs have no authority for the relief they request.

IV. THE INDIVIDUAL MEMBERS OF THE

BOARD OF GOVERNORS CANNOT BE HELD

LIABLE

Plaintiffs seek relief involving restitution of the sums

spent for allegedly inappropriate activities from the indi-

vidual members of the Board of Governors. However,

plaintiffs’ complaint contains no allegations concerning

the individual members of the Board of Governors other

than the fact that they are members of the Board of

Governors. There are no allegations that these members

acted in bad faith, or in any way outside of the scope of

their duties as members of the Board of Governors.

Under these circumstances, there is no authority for any

such restitutionary order.

In fact, California state law is to the contrary. Sianson

„. Mott, 17 Cal.3d 206 (1976), specifically overruled an

earlier decision of the California Supreme Court estab-

lishing strict liability for public officials authorizing the

improper expenditure of publie funds. 17 Cal.3d at 223.

overruling Mines v. Delvaille, 201 Cal. 273 (1927). The

Stanson court adopted instead the requirement that pub-

lie officials use

due care, i.e., reasonable diligence, in authorizing

the expenditure of publie funds, and may be subject

to personal liability for improper expenditures made

in the absence of such due care.” 17 Cal.3d at 226-27.

Various factors were set forth by the Court in determin-

ing whether a public official acted with the requisite due

care.

— we —

—

B-17

They were:

1. whether the expenditure’s impropriety was

obvious;

2. whether the official knew of the possible inva-

lidity of the expenditure;

3. whether the official relied on legal advice or on

the presumed validity of an existing legislative enact-

ment or judicial decision. 27 Cal.3d at 227.

Plaintiffs have made no allegations relating to any of

these standards. Although the plaintiff in Stanson v. Mott

was permitted to amend his complaint, this permission

was granted because, under the existing rule prior to

Stanson, no such allegations were required. However, such

is not the case here. The Stanson standard has been the

law since 1976, and plaintiffs are bound by it.

Further, even accepting all of plaintiffs’ allegations in

the complaint as true, there are and can be no allegations

which indicate that any expenditures were obviously im-

proper, that any member of the State Bar Board of

Governors knew of any potential invalidity, or that the

State Bar Board of Governors did not rely on the pre-

sumption of validity given by the legislative approval of

its activities. Such allegations could not be made, in light

of the Legislature's actions, and the long-standing rule of

governing publie agencies in California.

There is simply, no basis for plaintiffs’ attempt to

obtain restitution from the individual members of the

Board of Governors. Thus, in any event, the summary

judgment in favor of these defendants should be granted,

dismissing them from the lawsuit with prejudice.

B-18

V. CONCLUSION

For the reasons set forth above, defendants respect-

fully request that this Court grant their motion for sum-

mary judgment.

DATED: November 15, 1983.

Respectfully submitted,

HUFSTEDLER, MILLER, CARLSON

& BEARDSLEY

RoBERT S. THOMPSON

DENNIS M. PERLUSS

LAURIE D. ZELON

Mary E. HEALY

HERBERT M. ROSENTHAL

Truitt A. RICHEY, JR.

MAGDALENE V. O’RourKE

By Laurie D. ZELON

Attorneys for Defendants

APPENDIX C

APPENDIX C

COURT OF APPEAL, STATE OF CALIFORNIA

THIRD APPELLATE DISTRICT

Eppie KELLER; RAYMOND BROSTERHOUS; DAN M. KINTER; Davip LAMPE;

GARRETT BEAUMONT; CHRISTOPHER L. FAIRCHILD; JOHN A. GORDNIER;

CHRISTOPHER N. HEARD; LEONARD C. Hoar, IR.; J. ROBERT JIBSON;

CHARLES P. Just; DAROLD D. Pieper; THOMAS HUNTER RUSSELL; NANCY

L. SWEET; MICHAEL J. WEINBERGER; Davip E. WHITTINGTON; THoMas R.

YANGER; WarD A. CAMPBELL; DonALD C. MEANEY; ASSEMBLYMAN

PATRICK J. NOLLAN; AND A. WELLS PETERSEN,

Appellants,

Vs.

STaTE BAR OF CALIFORNIA, a publie corporation; ANTHONY M. MurRRay;

PATRICIA GREENE; GERT K. HIRSCHBERG; LELAND R. SELNA, JR.;

GEOFFREY VAN Loucks; THomas W. ERES: JoHN H. Costanzo; GEORGE

W. Coucn, III: BurKE M. CrRiTcHFIELD; THomMas R. Davis; DIXON &.

Dern; Rutw Cuurcn Gupta; Dace E. Hanst; LEONARD HERR; ROBERT

A. Hine; Puyuuis M. Hix; Marta Macias; PHILLIP ScCHAPER; CRAIG A.

SILBERMAN; DANIEL J. ToBin; JAukS D. WARD; AND Joon HEE Ru.

Respondents.

3rd Civil No. 24124

(County No. 307168)

APPEAL FROM THE SUPERIOR COURT

OF SACRAMENTO COUNTY

HONORABLE HORACE E. CECCHETTINI, JUDGE

RESPONDENTS’ BRIEF

HERBERT M. RoseNTHAL HUPSTEDLER, MILLER, CARLSON &

Truitt A. Ricuey, JR. BEARDSLEY

MAGDALENE V. O'’RourRKE RosBert S. THOMPSON

555 Franklin Street LAURIE D. ZELON

San Francisco, California 94102 Mary E. HEALY

(415) 561-8200 700 South Flower Street,

16th Floor

Los Angeles, California 90017

(213) 629-4200

Attorneys for Respondents

C-i

TABLE OF CONTENTS

Page

Table of Authorities ....... cc cccccccccccecccees C-iii

I. INTRODUCTION ... wc cc ccccccccccccccces C-1

II. ISSUES PRESENTED ................... C-3

III. STATEMENT OF FACTS ................. C-4

A. Procedural History .......... 8 04

B. The History Of The State Bar And Its Activi-

— REP Terr errr TT Tre er Te Ter C-5

eee C-7

444 co oue000n0asbecnekescentesss C-8

A. California Law Permits A Publie Entity,

Such As The State Bar, To Engage In The

Type Of Activities In Which The State Bar

BS oc cc cc cdcctecesbercasenccescces C-9

1. The State Bar Is A Publie Entity ...... C-9

2. Publie Entity Authority Is Tested By The

Implicit And Explicit Powers Granted To

The Agency By The Constitution And

Legislative Action C-11

neee C-11

b. Miller v. California Commission 0-12

3. The Legislative Authority Explicitly And

Implicitly Authorizes The Full Scope Of

Current State Bar Activity ............ C-13

: a. The Speeifie Authorization Is Broad (C-13

b. The Activities Of The State Bar Have

| Been Specifically Approved By The

Legislature And The Voters ........ C-14

4. Appellants Have Failed To Show That

The Challenged Activites Are Outside The

Scope Of The State Bar’s Authorization C16

lee ses 0-17

b. Amicus Curiae Briefs .............. C-20

C-ii

TABLE OF CONTENTS

Page

e. The Conference Of Delegates ....... C-21

d. President’s Speeches............... C-21

e. Publie Information On Judicial Inde-

rens eee eee C-22

B. The Challenged Activites Are Constitutional C-22

C. The Cases On Which Appellants Rely Do Not

Affect The Controlling Case Law .......... C-24

1. Abood v. Detroit Board of Education..... C-24

2. Ellis v. Brotherhoͤęi l 0-26

DDr .es eee C-27

4. Even If Abood Were Held To Apply, The

Requested Relief Would Not Be Available C-29

a. The Decision in Abood Does Not Per-

mit An Injunction Against The State

— ⁰ le C-30

b. Abood Limits Relief To Activites

Which Are Not Germane To The Pur-

pose For Which The Organization Is

r er ae C-30

5. Compelled Membership And Payment Of

Dues Do Not Infringe Rights Of Associa-

—. rene 0-32

a. Lathrop v. Donahue ................ C-32

b. Roberts v. United States Jaycees ...... C-34

D. The Individual Members Of The Board of

Governors Cannot Be Held Liable......... C-37

. bencedeceess C-40

C-iii

TABLE OF AUTHORITIES

Cases

er Passim

Alford v. Pierno, 27 Cal. App. 3d 682 (1972) C-15

Arrow v. Dow, 544 F. Supp. 458 (D.N.M. 1982) ...

e 5060008 C-27, 28, 30

Auto Equity Sales, Inc. v. Superior Court, 57 Cal.2d

DE sdbadecdecsddnvencceccetsesiceses C-27

Bettencourt v. Industrial Acc. Comm., 175 Cal. 559

%%% Ä˖ . . C-10

Chronicle Publishing Co. v. Superior Court, 54 Cal.2d

i I...... —7—ꝙ9 C-10

Common Cause v. Bolger, U.S. 103 S. Ct.

1888, 77 L. Ed. 2d 280 (1983)......... C-8, 23, 24, 27

Crawford v. Imperial Irrigation Dist., 200 Cal. 318

ccc ͤ 0e C-13, 19

DeMille v. American Federation of Radio Artists, 31

Cal.2d 139 (1947), cert. denied 333 U.S. 876

Pct cdwasteedeceewedbiedecess C-19, 29, 33, 34

Diamond Int'l Corp. v. Boas, 92 Cal.App.3d 1015

E C-16

Ellis v. Brotherhood of Railway, Airline & Steamship

Clerks, U.S. . 80 L.Ed.2d 428 (1984)...

eee C-24, 25, 26. 27, 31

English v. County of Alameda, 70 Cal.App.3d 226

ö eee C-15

C-iv

TABLE OF AUTHORITIES

CASES

Page(s)

Erzinger v. Regents of the Univ. of Calif., 137 Cal.App.

3d 389 (1982), cert. denied US. — 103

ee. C-12, 13

The Florida Bar Re: Amendment to Integration Rule,

No. 61,242 (decided September 22, 1983)....... C-28

Lathrop v. Donohue, 367 U.S. 820 (1961) .........

Lehane v. City and County of San Francisco, 30

Cal.App.3d 1051 (1972) ................ C-16, 17, 19

Miller v. California Commission on Status of Women,

151 Cal.App.3d 693 (1984) C-2, 8, 9, 12, 13, 24, 27

Miller v. Miller, 87 Cal.App.3d 762 (1978) ........ C-18

Mines v. Delvalle, 201 Cal. 273 (1977 C-38

Natural Resources Defense Council, Inc. v. Arcata Nat.

Corp., 59 Cal.App.3d 959 (1976)) C-15

Regan v. Taxation With Representation of Wash-

ington.— U.S. — ~, 103 S.Ct. 1997, 76

Ee GED Ko eee C-9, 23, 24, 27

Rhyne v. Municipal Court, 113 Cal.App.3d 807

——— C-10

Roberts v. United States Jaycees, 52 U.S.L.W. 5076

cc ĩ˙ʃ%ô¶c˙/ c C-32, 34, 35, 36, 27

Sams v. Olah, 225 Ga. 497 (Ga. Sup. Ct. 1969) .... C-17

Service Employees’ Int'l Union v. Roseville Commu-

nity Hospital, 24 Cal.App.3d 400 (1972) ........ C-10

Stanson v. Mott, 17 Cal.3d 206 (1976) .......... Passim

State Bar of California v. Superior Court, 207 Cal.

DERG sentecusceuscetustees ̃ ˙VêF veeess C-10

C-v

TABLE OF AUTHORITIES

CASES

Page(s)

Constitution

California Constitution, Article VI, 59 C-8,9

Statutes

Bus. & Prof. Code § 6000, et seg. (State Bar Act)... C-5, 9

Bus. & Prof. Code § 6001(g).................... C-13

Bus. & Prof. Code § 600ùłꝶ C-10

Bus. & Prof. Code 5 6028(a) .................... C-14

Bus. & Prof. Code § 6031 .............. C-14, 18, 20, 21

r ̃ qc. 00ers C-10

Gov't Code 5811.2 „6650222222 C-10

D ⅛ C-10

Textbooks

12 Moore’s Federal Practice € 400.05-1 (2d ed. 1982) C-23

Other Authorities

35 Ops. Cal. Atty. Gen. 112 (1960) .............. C-11

42 Ops. Cal. Atty. Gen. 25 (1963) ............... C-11

51 Ops. Cal. Atty. Gen. 190 (1968) .............. C-11

58 Ops. Cal. Atty. Gen. 29 (1975) ............... C-11

C-1

I. INTRODUCTION

This brief is submitted on behalf of respondents, State

Bar of California, Anthony M. Murray, Patrivia Greene,

Gert K. Hirsehberg, Leland R. Selna, Jr., Geoffrey Van

Loucks, Thomas W. Eres, John J. Costanzo, George W.

Couch, III. Burke M. Critehfield, Thomas R. Davis, Dixon

Q. Dern, Ruth Church Gupta, Dale E. Hanst, Leonard

Herr, Robert A. Hine, Marta Macias, Phillip Schafer,

Craig A. Silberman, Daniel J. Tobin, James D. Ward, and

Joon Hee Rho. Respondents respectfully submit that the

decision of the trial court was correct, as the relief

requested by plaintiffs-appellants is unavailable as a mat-

ter of law.

The State Bar, as a governmental agency, is governed

by both statutory and constitutional regulations and

restrictions. As this brief will demonstrate the applicable

constitutional limitations are not those set forth in the

labor union eases on which appellants rely; rather, the

relevant authority weighing the balance between First

Amendment rights and government activities is consis-

tent with the decision below.

Appellants, in attacking the trial court's decision, have

mischaracterized the basis of that ruling. While it is true

that the Court relied on Stanson v. Mott, 17 Cal. 3d 206

(1976), in upholding the right of the State Bar to engage

in the challenged activities, the court did not hold that,

under Stanson, a public agency could not violate the First

Amendment. (Appellants’ Opening Brief (CA. O. B.) at

2.) Rather, the court correctly read Stanson as saying

that, under the rules established there, the State Bar had

not violated the First Amendment. That the limits estab-

lished in Stanson, and complied with by the State Bar, are

the appropriate limits was clearly restated by this Court

C-2

in Miller v. California Commission on Status of Women,

151 Cal. App. 3d 693 (1984).

Appellants make a categorical attack on major activi-

ties of the State Bar; they do not identify or challenge

specific problems. Nor do they seek to remove restrictions

on their own right to speak and associate; no restrictions

have been imposed. Rather, appellants seek to prevent

others from freely speaking and associating. Under the

applicable authority of the United States Supreme Court,

the California Supreme Court, and this honorable Court,

they cannot do so.

The State Bar of California has existed since 1927. It is

a creature of the State Constitution as implemented by

legislative enactments. California statutes expressly

authorize the State Bar to engage in the following range

of activities: advancement of the science of jurisprudence;

improvement of administration of justice; promotion of

relations of the Bar with the public; advancement of the

professional interests of the members of the State Bar;

and performance of actions necessary to the administra-

tion and purposes of the State Bar.

The State Legislature closely supervises the scope of

activity of the State Bar. The Legislature reviews the

activities of the State Bar each year when authorizing

annual fees payable by lawyers for the privilege of prac-

ticing law in this State. The legislative consideration of

annual State Bar fees bills does not occur in a vacuum;

the State Bar presents the activities planned for the year

to the Legislature.* In enacting the annual fees bill, the

*Original Superior Court File (.F.) 355-664 and 666-703 are

examples of these presentations. In 1982, the fees bill concerned a

two-year, rather than a one-year period. (0. F. 666-703.)

C-3

Legislature implicitly authorizes the State Bar activity

deseribed in the presentation.

The most detailed presentation by the State Bar to the

Legislature about its activity oceurred in 1981. (O.F. 355-

644) This presentation included over thirty individual

activities in some ten categories, excluding administrative

activities. Although less detailed, subsequent and prior

presentations likewise described categories of activities.

These presentations show that each of the activities

attacked by appellants constitutes a long-standing activ-

ity of the State Bar.

In their action, plaintiffs-appellants sought an injune-

tion that if granted would abort a major part of long-

performed functions of the State Bar expressly mandated

and implicitly approved by the Legislature. The authority

they cite does not, however, support the relief they

requested.

Il. ISSUES PRESENTED

This appeal raises the following issues:

1) May individuals restrain a governmental entity

from taking positions with which they may disagree

beeause such individuals are obligated to fund that

entity through a legislatively-mandated tax;

2) Does the explicit and implicit authority given

to the State Bar as a governmental entity permit the

activities of which appellants complain; and

3) May individual members of the governing

authority of a governmental entity be held personally

liable where there is no allegation or evidence that

— their actions were not taken in good faith.

C-4

Respondents submit that each of these questions has

been decided in controlling precedent from the United

‘States Supreme Court, and the California courts, in favor

of the State Bar and the members of its Board of

Governors, and that the decision of the court below

should therefore be affirmed.

III. STATEMENT OF FACTS

A. Procedural History

This action has been filed by 21 individual members of

the State Bar of California, who seek to enjoin a broad

range of activities by the State Bar to which they appar-

ently object. According to appellants, the use of the fees

they must pay as a result of the legislative authorization

of the State Bar as an integrated bar, for activities they

disapprove of, violates their First Amendment rights.

Appellants seek to enjoin the State Bar from proceeding

with its activities outside of the area of admissions,

discipline, and regulation.

A temporary restraining order and order to show cause

was entered on October 26, 1982. Respondents were

ordered to show cause why they should not be enjoined

during the pendency of the action from using the revenue

from State Bar fees, or the name of the State Bar, “to

promote any particular ideologies regarding judicial re-

tention elections or other elections.” The Court further

ordered that, pending the hearing, respondents were re-

strained from using revenue derived from the named

appellant's State Bar fees to “promote any particular

eriteria regarding the evaluation of judges and judicial

retention elections.” (O.F. 254-36.)

That order was superseded by an order continuing the

hearing from November 29, 1982, to January 25, 1983.

C-5

Pursuant to stipulation, pending the hearing the respon-

dents deposited a sum equal to the mandatory State Bar

fees of all the plaintiffs named in the complaint as of

December 2, 1982 in a trust account.“ (O. F. 241-42.)

Appellants’ motion for preliminary injunction was

heard on January 28, 1983, and denied on March 4, 1983.

(O.F. 983-85.) On November 22, 1983, following extensive

discovery, respondents’ motion for summary judgment

was filed. Plaintiffs filed a Motion for Partial Summary

Judgment on November 23, 1983. Plaintiffs’ motion was

denied on March 19, 1984. (O.F. 1752-53.) Judgment was

granted in favor of all defendants on May 24, 1984. (O.F.

1754.) After plaintiffs unsuccessfully sought a writ of

mandate, they filed a notice of appeal to this Court on

June 18, 1984. (O.F. 1759.)

B. The History Of The State Bar And Its Activities

The State Bar was created in 1927 by the State Bar

Act, Bus. and Prof. Code § 6000, et seq. Throughout its

history, the State Bar has remained subject to the provi-

sions of this statute. In 1960, the status of the State Bar

was altered when the voters approved a ballot proposition

making the State Bar a constitutional entity. A similar

vote in 1966 maintained this status. (0. F. 292-93; 300.)

The creation of the State Bar in 1927 was in part

prompted by concerns about inadequate professional

standards and competence and by widespread recognition

of the need for assistance in legal reform and improve-

ment of judicial administration. Reference to the records

of the State Bar shows that the State Bar immediately

began activities to address these concerns and that many

The complaint was amended again, on January 13, 1983, after the

Court's Order, to add additional plaintiffs.

C4

of the programs begun by the State Bar in its early years

have lasted in one form or another over the 50 years in

which the State Bar has been in existence. For example,

even in the earliest years of the Bar, and throughout its

history, there have been programs to improve delivery of

legal services to the poor, to promote reform in procedu-

ral and substantive areas of law, and to educate the public

about issues affecting the State Bar. (O. F. 293-303.)

With regard to the issues raised in this lawsuit, State

Bar records show that the types of activities challenged

by plaintiffs here have been part of State Bar programs

for many years. For example, from its inception, the Bar

organized sections of members to study and propose legal

reform. One of the areas addressed at that time was

judicial selection and conduct. In the 1930s, the State Bar

was instrumental in gaining adoption of standards for

judicial selection in California. More recently the Bar has

assisted in programs of judicial evaluation. Thus, activi-

ties to maintain the independence and integrity of the

judiciary are not new to the State Bar. (O.F. 293-98.)

Similarly, legislative activity is not new to the State

Bar. One of the most effective ways in which the State Bar

ean fulfill its obligations to advance the science of juris-

prudence and to improve administration of justice is to

suggest and promote legislation. In the early years of the

Bar, members of sections studying potential legal reform

were encouraged to lobby for reform. The members of the

Board of Governors and Secretary of the State Bar also

lobbied for adoption of legislation recommended by Bar

sections. (O.F. 294-95.)

Programs to encourage participation of State Bar mem-

bers in State Bar activities and programs to obtain the

input of State Bar members in decisions made by that

organization have also been of long standing in the State

C-7

Bar. In fact, the predecessor program to the Conference

of Delegates began in the 1930s. (O.F. 295.)

These are just a few examples of how the categories of

work of the State Bar have since its beginnings remained

relatively constant. These examples also underscore the

fact that the activities challenged by petitioners are long-

standing practices of the State Bar. These practices, and

the other activities of the State Bar are reviewed annually

by the Legislature in conjunction with its approval of the

State Bar’s fees bill. The Bar has continually played a

significant role in providing the legislative and executive

branches with information and assistance in areas of its

particular expertise.*

C. The Complaint

The complaint sought to enjoin all activity of the State

Bar encompassed in the following categories:

(a) lobbying the California Legislature;

(b) submitting briefs amicus curiae;

(e) financing meetings of the Conference of

Delegates;

(d) publicizing the speeches by the President of

the State Bar; and

(e) finaneing the public information project on

judicial retention.

»A detailed discussion of the history of the State Bar and its

activities, setting forth the matters discussed above, is ineluded in

the Declaration of Magdalene V. O' Rourke filed in the trial court.

(O.F. 289-303.)

C-8

Complaint, J 6, C. T. 3-4. Appellants did not challenge any

specifie activity in any of the enumerated classes. Their

attack was, and is, categorical.

The complaint also sought to hold the individual mem-

bers of the Board of Governors liable for past expendi-

tures of the State Bar utilized to finance its activities in

these categories. Appellants sought reimbursement of all

fees expended for “political and ideological purposes”

(Prayer, J 3, C. T. 5-6), without further specifying those

activities.

IV. ARGUMENT

Respondents assert, for the following reasons, that

appellants were not entitled to the relief they sought, and

that the decision of the court below was correct as a

matter of law:

1. the State Bar is an agency of the California

state government created by Article VI, §9 of

the California Constitution and implementing

legislation;

2. beeause the State Bar is an agency of the

government it has all powers expressly or implicitly

granted it by the Constitution and statute, limited

only by restrictions imposed by the Constitution.

Stanson v. Mott, 17 Cal.3d 206 (1976); Miller v.

California Commission on Status of Women, 151

Cal.App.3d 693 (1984);

3. each category of State Bar activity and each

specific activity of the State Bar mentioned in the

complaint is expressly or implicitly authorized by the

California Constitution and the State Bar Act. This

authorization is confirmed annually by the Legisla-

ture in enacting legislation providing for financing

C-9

the State Bar after receiving the ageney's proposed

budge: for the ensuing year;

4. no constitutional restriction precludes the

State Bar from engaging in the categories of activity

described in the complaint or the specifie functions

mentioned in it. To the contrary, two recent decisions

of the United States Supreme Court reject the consti-

tutional attack mounted by plaintiffs. Regan v. Tazxa-

tion with Representation of Washington, U.S.

— 103 S.Ct. 1997, 76 L.Ed.2d 129 (1983); Com-

mon Cause v. Bolger, U.S. — 103 S.Ct. 1888,

77 L.Ed.2d 280 (1983);

: 5. the authorities upon which appellants rely are

inapplicable to agencies of government. They are

pertinent only to the affairs of private organizations;

and

6. a controlling decision of the California Su-

preme Court mandates rejection of appellants’ claim

that the individual members of the Board of Gover-

nors of the State Bar are liable. Stanson v. Mott,

supra. This Court has recently rejected an indistin-

guishable challenge on the same grounds. Miller,

supra.

A. California Law Permits A Publie Entity, Such As

The State Bar, To Engage In The Type Of Activi-

ties In Which The State Bar Engages

1. The State Bar is a Publie Entity.

Article VI, §9 of the California Constitution estab-

lishes the State Bar of California as a publie corporation.

The parallel legislative enactment, establishing the State

Bar as a publie corporation, and enumerating its powers,

is the State Bar Act, Bus. & Prof. Code § 6000, et seq. The

C-10

California Supreme Court upheld the constitutionality of

the State Bar Act, and the establishment of the State Bar

as a public corporation, in State Bar of California v.

Superior Court, 207 Cal. 323 (1929).

Publie corporations constitute public entities. See Ser-

vice Employees’ Int’l Union v. Roseville Community Hospi-

tal, 24 Cal.App.3d 400, 407 (1972); Bettencourt v.

Industrial Acc. Co., 175 Cal. 559, 561 (1917). Like other

publie entities, the State Bar was created to serve govern-

mental purposes and was accordingly vested with govern-

mental powers. It is charged with the duty of regulating

the profession and practice of law, a subject which is

essentially. .. a matter of public interest and concern

.... State Bar of California v. Superior Court, supra, 207

Cal. at 331.

Because the State Bar is a public entity, its property is

exempt from taxation. As the Legislature has declared,

such property is “held for essential public and govern-

mental purposes in the judicial branch of the government

.... Bus. & Prof. Code § 6008. The members of the

Board of Governors are public officers acting under oath.

Chronicle Publishing Co. v. Superior Court, 54 Cal.2d 548,

566 (1960). These governmental powers, purposes, and

attributes demonstrate clearly that the State Bar is a

publie corporation in fact as well as in theory, and that is

is dedicated to public, not private ends. See State Bar of

California v. Superior Court, supra, 207 Cal. at 330-32.

Moreover, as a matter of general policy, publie corpora-

tions are deemed to be publie entities. See Gov't Code

§ 53050; Gov't Code § 811.2; Evid. Code § 200; Rhyne v.

Municipal Court, 113 Cal.App.3d 807, 824-25 (1980).

Thus, the State Bar, a creature of California constitu-

tional and statutory law, is, as a matter of California law,

a publie entity. Specific standards have been developed in

C-11

California defining the range of activities in which public

agencies may properly engage. As demonstrated below,

those standards clearly authorize the State Bar to engage

in the full range of activities challenged in this lawsuit.

2. Publie Entity Authority Is Tested By The Implicit

And Explicit Powers Granted To The Agency By

The Constitution And Legislative Action

a. Stanson v. Mott

The powers of public agencies in California were de-

seribed at length in Stanson v. Mott, 17 Cal.3d 206 (1976).

In that case, a taxpayer challenged the expenditure of

funds by the State Department of Parks & Recreation to

promote the passage of a ballot proposition. In confirming

the authority of the Department to expend funds for

lobbying and public information related to ballot proposi-

tions, the court first examined the scope of the authoriza-

tion given to the agency to expend funds. This analysis

was required by “the general principle that expenditures

by an administrative official are proper only insofar as

they are authorized, explicitly or implicitly, by legislative

enactment.” 17 Cal.3d at 213. In determining whether the

challenged activity was proper, the court looked to the

various legislative authorizations pertaining to the

Department.

Various opinions of the Attorney General of California

have applied this same analysis to determine the propri-

ety of expenditure of publie funds under various eireum—

stances. See, e. g., 58 Ops. Cal. Atty. Gen. 29 (1975); 51

Ops. Cal. Atty. Gen 190 (1968); 42 Ops. Cal. Atty. Gen.

25 (1963); 35 Ops. Cal. Atty. Gen. 112 (1960).

C-12

b. Miller v. California Commission

Appellants’ assertion that Stanson addresses only stat-

utory authorization questions, and does not decide the

constitutional issues, is clearly wrong. The Court ex-

pressed specific concern about necessary limits on govern-

ment activity, 17 Cal.3d at 218, and, accordingly, set such

limits. Compliance with those limits answers the constitu-

tional questions raised by appellants, as this Court specif-

ically reiterated in Miller v. California Commission, supra.

In Miller, plaintiffs raised a constitutional challenge to

the advocacy activities of the Commission on the Status of

Women, a tax-funded agency. They claimed that its action

in support of principles with which they disagreed vio-

lated their First Amendment rights. The Court rejected

this Proposition, holding that the government could not

be prevented from speaking because of taxpayer disagree-

ment. 151 Cal.App.3d 700-701. Indeed, the democratic

process requries the government to speak. Id. Only where

the entity does not comply with the limits set forth in

Stanson, or drowns out the individuals, is a problem

raised. 151 Cal.App.3d at 700-702. Neither situation is

present here; the State Bar has complied with Stanson,

and appellants do not claim, nor ean they, that they are

unable to make their views heard.

Appellants assert (A. O. B. at 2) that Miller does not

apply, as the entity involved was funded by general

taxation, rather than a special tax iraposed on a limited

group. That distinction is irrelevant, however. First,

Miller itself draws the relevant distinction — between

governmental entities, such as the Commission and the

State Bar, and private organizations such as labor unions.

151 Cal.App.3d at 700. Second. the rules applied by Miller

have been applied to governmental entities supported by a

special tax or fee. See Erzinger v. Regents of the Univ. of

C-13

Calif., 137 Cal.App.3d 389, 392 (1982), cert. denied

U.S. — (1983). Finally, in terms of the relief suggested

by the Miller court, redress from the Legislature, the

individual member of the State Bar has an even broader

right in his ability both to vote to affect the policies of the

Bar by changing the membership of the Board of Gover-

nors and to seek legislative redress.

3. The Legislative Authority Explicitly And Implicitly

Authorizes The Full Seope Of Current State Bar

Activity

a. The Specifie Authorization is Broad

Like those of other California governmental agencies,

the State bar's limits are established by reference to the

authorization given to it by the Legislature and the people

of California. In the ease of the State Bar this authoriza-

tion comes from both the constitutional enactment of its

existence and the legislation directing it. Like any other

publie corporation, the State Bar:

[D ]erives its powers from the statute under which

it is ereated and acts, and from such other statutes

as may have been enacted by the legislature granting

it additional powers or limiting those already

granted.” Crawford v. Imperial Irrigation Dist., 200

Cal. 318, 326 (1927).

The legislative authorization for the California State

Bar is both clear and broad. Among other things, the

State Bar is empowered to “Do all... acts... necessary

or expedient for the adminstration of its affairs or the

attainment of its purposes.” Bus. & Prof. Code § 6001(g).

The Board of Governors of the State Bar is likewise

authorized to “make appropriations and disbursements

from the funds of the State Bar to pay all necessary

C-14

expenses for effeetuating the purposes of this chapter.”

Bus. & Prof. Code § 6028 (a). Finally,

“The board may aid in all matters pertaining to the

advancement of the science of jurisprudence or to the

improvement of the administration of justice, inelud-

ing, but not by way of limitation, all matters that may

advance the professional interests of the members of

the State Bar and such matters as concern the

relations of the bar with the public.” Bus. & Prof.

Code § 6031.

Appellants could not and did not show that any of the

challenged activities of the State Bar are outside of the

seope of its authorization. Rather, appellants wish to

enjoin State Bar activity solely by claiming that, because

they may disagree with some or all of the positions of the

State Bar, the State Bar may not use their funds to

engage in such activities.

b. The Activities Of The State Bar Have Been Specifi-

eally Approved By The Legislature And The Voters

The State Bar has engaged in the activities appellants

challenged sinee its creation. The Legislature has seruti-

nized these activities annually in conjunction with its

approval of the State Bar's fees bill. Thus, with full

knowledge of these activities, the Legislature and the

people of California have maintained the State Bar Act in

effect. In determining whether the challenged activities

are appropriate and are within the scope of the State

Bar's proper functions as a state agency, the court below

was entitled to give great weight to this consistent legisla-

tive support of the activities of the State Bar.

The intent of the Legislature in enacting the State Bar

Act is also of great import in determining the seope of the

State Bar's powers.

C-15

“It is well settled that in construing statutes the

court must ascertain the intent of the Legislature so

as to effectuate the purpose of the law. In the course

of this procedure the court must take into account a

variety of factors, such as the context of the legisla-

tion, its objectives, the evils to be remedied, and

publie policy (citations omitted). The cases are not

less emphatic that contemporaneous construction of

the legislation may also be considered.” Natural Re-

sources Defense Council, Inc. v. Arcata Nat. Corp., 59

Cal.App.3d 959, 973 (1976) (citations omitted).

See also Alford v. Pierno, 27 Cal.App.3d 682, 688 (1972).

Administrative construction of a statute and adminis-

trative practice are likewise entitled to great weight in

ascertaining the meaning of the Legislature's actions.

English v. County of Alameda, 70 Cal.App.3d 226, 240

(1977). Thus, the actions of the Legislature, both in

reenacting the State Bar Act, and in approving the Bar's

activities every year in enacting the fees bill, are entitled

to be weighed heavily in the determination of the appro-

priate scope of the State Bar's authority. The State Bar's

annual presentation in conjunction with its fees bill is

explicit evidence of the Legislature's acute awareness of

its activities.

Further, in 1960 and in 1966 the electors of California

enacted Constitutional propositions to establish and

maintain the State Bar as a Constitutional agency. In

both elections the voters approved the State Bar's Consti-

tutional status. The material submitted to the voters in

these elections in support of, and in opposition to, the

ballot propositions was submitted to the court below.

(O.F. 893-903; 905-11.) Those materials, important in

ascertaining the intent of the electorate, constitute power-

ful evidence that the concept of a State Bar, as a body

C-16

with the powers approved by the Legislature, was fully

supported by California voters. See Diamond Int'l Corp. v.

Boas, 92 Cal.App.3d 1015, 1034 (1979).

4. Appellants Have Failed To Show That The Chal-

lenged Activities Are Outside The Scope Of The

State Bar's Authorization

Appellants essentially object to activities in the follow-

ing five areas: (a) lobbying; (b) submitting amicus curnae

briefs; (e) financing meetings of the Conferences of Dele-

gates; (d) publicizing speeches of the President of the

State Bar; and (e) distributing public information on

judicial retention. (Complaint, € 6, O.F. 3-4; A.O.B. at

3-4.)

Significantly, however, appellants have identified no

areas beyond the scope of the legislative and constitu-

tional authorization of the State Bar. In fact, all of the

matters to which they object are within the seope of

authorization for the State Bar.

Appellants seek to, but may not, stop the State Bar

from engaging in activities because appellants apparently

disagree with the positions taken by the Board of Gover-

nors, chosen in a democratic manner to set such policies.

(O.F. 257-58.) Apparently appellants seek to use the

eatch phrase “political and ideological” to deseribe, and

halt, any positions or activities with which they disagree.

Such disagreement does not permit the silencing of the

entire Bar.* See Lehane v. City and County of San Fran-

*Indeed, appellants’ position would prohibit all government from

functioning if the disagreement of a taxpayer with a position taken

could halt an entire program. No government entity, ineluding the

Judicial Council, could lobby; the Attorney-General’s office could not

file amicus briefs. However, as has been demonstrated above, that

result is not permitted by law.

C-17

eisco, 30 Cal.App.3d 1051, 1056 (1972). This doctrine has

been clearly recognized outside of California as well.

“It is true that [a member of the State Bar] is

required to contribute to the cost of the operation of

the State Bar, and he may not agree with all of the

policies as determined by its Board of Governors.

The Board of Governors is selected in a democratic

manner.

It is frequently true in a democratic society that the

wishes of the minority are overruled, even though

they must contribute to the cost of the programs

earried forward by the majority.” Sams v. Olah, 225

Ga. 497, 505 (Ga. Sup. Ct. 1969).

In Sams, the court coneluded that the test for illegal

expenditures is not a broad test of whether the funds are

being spent contrary to the individual's wishes, but rather

whether the funds were spent for the authorized purposes

of the State Bar. 225 Ga. at 507. By this reasoning, the

most appellants could seek to bar would be those activi-

ties demonstrably outside of the activities authorized by

the Constitution and the Legislator. None of the activities

objected to, however, are unauthorized.

a. Lobbying

Appellants have challenged the entire lobbying pro-

gram of the State Bar, without attempting to show that

any of this lobbying is outside the scope of the Bar's

authority. They thus attack no specific aspect of the State

Bar's program of legislative advocacy, but simply the

right of the State Bar to engage in any lobbying activity

at all. Lobbying by publie agencies is clearly permitted

under California law, so long as the lobbying is in areas

within the euthorized jurisdiction of the agency.

the seope of Bus. & Prof. Code § 6031 has the explicit and

implicit approval of the Legislature. It is explicitly ap-

proved on an annual basis by means of the fees bill, as set

forth above. It is implicitly approved by prevailing Cali-

fornia ease law, exemplified by the leading case of Stanson

v. Mott, supra.

Having examined the scope of legislation governing the

state agency under consideration in Stanson, the court

concluded that there had been no specific authorization

for the use of public funds in the election campaigns at

issue in that case. The court distinguished such expendi-

tures from the use of funds for lobbying efforts, and noted

specifically that lobbying efforts were authorized even

though certain of the causes advocated might be those

which some members of the public might not support:

“[T]he legislative process contemplates that inter-

ested parties will attend legislative hearings to ex-

plain the potential benefits or detriments of proposed

legislation, publie agency lobbying, within the limits

authorized by statute...in no way undermines or

distorts the legislative process. By contrast, the use

of the publie treasury to mount an election campaign

which attempts to influence the resolution of issues

which our Constitution leave to the ‘free election’ of

the people does present a serious threat to the

integrity of the electoral process.” 17 Cal.3d at 218.

See also Miller v. Miller, 87 Cal.App.3d 762, 767 (1978).

The Stanson court made clear that even the prohibition

against election campaigning did not preclude the agency

from ineurring any expense in connection with the elee-

tion. The agency was implicitly authorized, the Court

C-19

held, to expend funds to inform potential voters. 17 Cal.

3d at 220-21. Indeed, the court stated that

[It would be contrary to the public interest to bar

vant information to the public, so long as such diselo-

sure is full and impartial and does not amount to

improper campaign activity.” 17 Cal.3d at 221 n.6.

Thus, the court permitted a “fair presentation of facts”

but prohibited, as had earlier courts, exhortations to the

voters to vote in a certain manner. The standard for the

determination of propriety was established as:

“a careful consideration of such factors as the style,

tenor and timing of the publication; no hard and fast

rule governs every case.” 17 Cal.3d at 222.

Within the limits set by the legislature authorization of

the agency, an agency may properly expend funds for

purposes related to the agency's mandate so long as the

power of the government is not brought to bear unfairly

upon the electoral process. The power of agencies to lobby

the Legislature, however, is specifically permitted. See

Crawford v. Imperial Irrigation Dist.. 200 Cal. 318,

(1927); Lehane, supra.

“If a taxpayer can restrain a government entity from

lobbying for legislation to which the taxpayer is

opposed, the power of a government entity to lobby is

a power which can never be exercised, for in practice

some taxpayer will surely hold a contrary view. If the

taxpayer does not agree with the decision of his

elected representatives in this area, as in others, his

recourse is to vote against them.” 30 Cal.App.3d at

1056. See also DeMille v. American Federation of

Radio Artists, 31 Cal.2d 139 (1947) cert. denied 333

U.S. 876 (1948). (majority rule permits imposition of

C-20

an assessment despite disagreement by a member

with the purposes for which the assessment is

levied ).

Appellants obviously do not dispute that they can not

only vote for state legislators, but also vote in State Bar

elections, and participate in State Bar activities. Like all

other members of the State Bar, they may attempt to

affect policy through established mechanisms, but they

may not impose their will upon the majority, or stifle the

speech of the majority.

b. Amicus Curiae Briefs

Appellants’ challenge to the State Bar's program of

submitting e@micus curnee briefs is unsupported by any

showing that the program is outside of the Bar's specific

authorization to advance the science of jurisprudence and

to improve the administration of justice.“ Again, appel-

lants attack no specific aspect of the State Bars amicus

brief program but rather its authority to file amecus briefs

in general. Certainly amicus briefs related to “the science

of jurisprudence” and “the administration of justice” can

be filed in keeping with the functions of the State Bar.

Bus. and Prof. Code § 6031. The presentation of positions

to a Court in a broad variety of cases parallels the

legislative advocacy approved in Stenson; the rationale of

that ease is applicable.

Appellants’ free speech or associational interests are in

no way infringed by the amicus program. Appellants

obviously do not contend that they cannot themselves file

amicus briefs if they disagree with any position advocated

OF 850-51 is « copy of the procedures and guidelimes for the

amicus program

C-21

by the State Bar; as with lobbying, their individual partie-

ipation is in no way prohibited.

e. The Conference of Delegates

The Conference of Delegates is an integral part of the

democratic organization of the State Bar, providing a

forum for the collegial discussion of causes by representa-

tives of the lawyers of California Appellants attack no

specific aspect of activity of the Conference of Delegates,

and they point to no facts showing that the function of the

Conference is outside the scope of authorized activities

under Bus. & Prof. Code § 6031. Appellants have also not

demonstrated that they are unable to have their views

heard and considered by the Conference. Their objection

apparently is that at the Conference a majority view may

prevail, or unpopular views may be expressed; they there-

fore seek to enjoin the free speech of their fellow lawyers.

d. President’s Speeches

Again appellants’ attack is general, as they seek to

enjoin all dissemination by the State Bar of the speeches

of its President. The Bar is charged with undertaking

activities concerning its relations with the public. Giving

the publie access to knowledge of the policies and activi-

ties of the Bar through the speeches of its President,

along with other educational activities, is thus explicitly

within the Bar's mandate and within the scope of activity

permitted by Stanson, supra.

*O.F. 853-91 is a copy of the Conference of Delegates Handbook

for 1982. This exhibit deseribes the Conference of Delegates program.

C-22

e. Publie Information on Judicial Independence

Materials describing the publie information project on

judicial independence were submitted to the court below.

O. F. 743-833. These documents demonstrate clearly that

as to style, tenor, and timing, this ongoing project consti-

tutes an effort by an informed agency to educate the

public, fully, fairly, and impartially as to matters within

its expertise. Under Stanson v. Mott and the other relevant

authority, such a program is not only permissible, but is

appropriate and socially desirable. Indeed, in light of its

legislative mandate, such a program may, in fact, be an

obligation of the State Bar. While it is true that an

information program designed to inform the public of the

fundamental characteristics of the judicial function and

of the historical foundation of an independent judiciary

may be said to promote an ideology, this is an ideology

intimately connected with the science of jurisprudence

and the administration of justice.

Once again, however, appellants seek to enjoin an entire

program without alleging or putting forth any evidence

that the materials assembled for that project are anything

other than a fair presentation of facts and of such style

and tenor that they constitute a proper attempt to inform

the voters about issues concerning which the Bar has

special knowledge and unique responsibilities. Rather,

appellants merely assert that the project is political or

ideological and thus improper. That bare assertion is

ineorrect.

B. The Challenged Activities Are Constitutional

Two recent decisions of the United States Supreme

Court further clarify the right of a governmental entity to

engage in speech activities, even though such activities

are financed by taxes. The government may, in certain

C-23

instanees, use tax dollars to subsidize issue-oriented

speech regardless of whether there is any compelling

governmental interest to support this decision. Only a

rational relationship to legitimate governmental purposes

is required. Regan v. Taxation With Representation of

Washington,. — U.S. —_, 76 L.Ed.2d 129, 138-40

(1983). The same test is mandated by the applicable

California authority cited above, and governs this case.

In addition the Supreme Court affirmed without opin-

ion the decision of a three-judge District Court in Com-

mon Cause v. Bolger, U.S. — 77 L.Ed.2d 280

(1983).* In that ease, the Court held that incumbent

legislators may use the franking privilege without violat-

ing the constitutional rights of voters and nonineumbents

despite the greater impact thus given to the ineumbent's

speech. The Court declined to apply a strict serutiny

analysis, because any restriction on First Amendment

rights was indirect and, because it applied to all non-

incumbents, was not content-related. The same is true

here; any restriction is indirect and applies to all who

disagree with the majority position on a broad spectrum

of issues, not to any particular position.

The State Bar speaks as a government agency and must

be governed by this law in all respects. Although plaintiffs

allege that the State Bar purports to represent the views

of its individual members, that claim is demonstrably

without basis in fact and is merely an unsupportable

conclusion. The State Bar speaks as a constitutional and

statutory body. See O.F. 1139-40, 1141-42, 1612-13.

*Such a summary affirmance is a resolution on the merits and

constitutes precedential authority. See 12 Moore's Federal Practise

* 400.05-1 (2d ed. 1982).

C-24

The important governmental interest in the free flow of

information validates each of the State Bar's activities

complained of. Regan and Bolger, which are in complete

accord with the ruling of the California Supreme Court in

Stanson, supra, of this Court in Miller, supra, and the

other authority cited, required the Court below to decide

this case in favor of the State Bar; that decision should

therefore be affirmed.

C. The Cases On Which Appellants Rely Do Not Af-

feet The Controlling Case Law

Appellants seek by this action to enforce a “negative”

First Amendment right — to prevent the speech of others

with whom they disagree, and not to protect against any

abridgement of their own speech. As we have demon-

strated, this attempt is unsupported by the applicable

law. The eases on which appellants rely are clearly distin-

guishable. These cases deal either with state-compelled

financing by individuals of private organizations where

the obligation to finance is limited to activities germane to

the governmental interest justifying compulsion (A.O.B.

at 5-8, 9-13) or positive“ First Amendment rights in-

fringed by prevention of a person’s own right to speak

and associate. (A.O.B. at 8-9.)

1. Abood v. Detroit Board of Education

Appellants rely primarily on Abood v. Detroit Board of

Education, 431 U.S. 209 (1977). However, Abood deals

with compelled exactions paid by nonmembers to a pri-

vate organization, in that case a labor union, and holds

only that those exactions cannot be compelled for a

purpose unrelated to the purpose for which organization

was formed, or to discourage free-riding and the conse-

quent labor strife. Ellis v. Brotherood of Railway, Airline

& Steamship Clerks, U.S. — 80 L.Ed.2d 428

C-25

(1984), which refined Abood, however, imposes severe

restrictions upon those nonmembers who seek to negate

the First Amendment rights of members.

Abood held, in pertinent part, that non-members of a

labor union could not be constitutionally compelled to

contribute to ideological causes they opposed. The Court

held, however, that plaintiffs were not entitled to an

injunction because of its effect upon the First Amend-

ment rights of union members. 431 U.S. at 238. Instead,

the Court limited plaintiffs to a mechanism that would

limit fees, excluding the portion of the fees used for

purposes other than those for which the union was

formed. Except as it imposes such constitutionally man-

dated restrictions upon the injunctive remedy, Abood is

otherwise inapplicable to the case at bar.

The difference in the nature of the payment to the

private organization in Abood and the tax paid as fees to

the governmental entity by California lawyers distin-

guishes the case at bar from that portion of Abood which

provides for a limitation on dues. Plaintiffs in Abood were

government employees who were not members of a union

which had negotiated a collective bargaining agreement

with the Board of Education. The agreement provided for

an “agency shop,” in which those employees who elected

not to become members of the union were nevertheless

obligated to pay the equivalent of union dues to it. This

payment was designed to prevent unjust enrichment to

the nonunion employee who otherwise would receive the

benefit of union representation for which the union mem-

bers had paid. 431 U.S. at 222.

The result in Abood is a direct result of an inherent

limitation in the principle which allows governmental

compulsion of payments to the private union in the first

instance. The allowance of an agency shop as a condition

C-26

to government employment can only be justified by the

special needs and benefits to be gained from that arrange-

ment in a labor context Thus, the First Amendment

violation in Abood was the direct product of the use of non

members’ fees for purposes beyond the scope of the

benefits that justified the agency shop.

The State Bar of California is not comparable to a labor

union. The obligation of lawyers, each of whom is a

member, to pay to finance the functions of the State Bar

is imposed by constitution and statute, not contract. State

Bar fees are in reality a special tax imposed upon those

permitted to practice law in this State. Unlike the union

in Abood, the State Bar has the power to exact fees from

all active California lawyers, derived from the State's

power to tax. The pertinent scope of authority to expend

this tax is that applicable to publie entities and not that

applying to private organizations acting by agreement

with government.

2. Ellis v. Brotherhood

Abood was refined by the Supreme Court in its decision

in Ellis v. Brotherood of Railway, Airline & Steamship

Clerks, U.S. 80 L.Ed.2d 428 (1984). That case,

involving governmentally compelled dues pursuant to the

Railway Labor Act, determined that only certain ex-

penses, necessarily and reasonably incurred for the pur-

poses of the duties of the union as exclusive bargaining

representative, were statutorily permitted. 80 L.Ed.2d at

442. As to such activities, the Court found that the First

Amendment posed no barrier to the use of compelled

funds, as any interference with protected rights was

justified by the governmental interest in industrial peace.

80 L.Ed.2d at 446-47. In making this determination, the

Court cautioned that flexibility in the use of compelled

C-27

funds must be maintained. 80 L.Ed.2d. at 447. citing

Abood.

Both Abood and Ellis hold only that the state action

compelling payments used by a private organization to

subsidize speech must be supported by some governmen-

tal interest which justifies the compulsion. Neither case

requires that that interest be compelling, and neither

requires that more narrowly drawn restrictions on the

objectors’ rights be substituted. In each case, the govern-

mental interest was narrow — the preservation of labor

As Regan and Bolger demonstrate, however, where

taxes are involved the governmental interest is broad. As

long as an individual's freedom to speak is not restricted,

the power to spend is vested in the legislative branch, and

not the courts.

3. Arrow v. Dow

Appellants’ reliance upon Arrow v. Dow, 544 F. Supp.

458 (D.N.M. 1982) is badly misplaced. In that case. a

federal district court in New Mexico held that the inte-

grated bar of New Mexico could not engage in certain

specified lobbying activities if those activities were fi-

naneed with mandatory dues collected by the New Mexico

Bar Association. We submit that the decision of this

Court in Miller, supra, rather than that of a single federal

trial judge in Arrow is the persuasive authority. A deci-

sion of the district court of New Mexico is not binding on

this honorable Court. To the extent that it is inconsistent

with decisions of the California Supreme Court and

Courts of Appeal, the case must simply be disregarded.

Auto Equity Sales, Inc. v. Superior Court, 57 Cal.2d 450

(1962). The facts of Arrow are obviously different from

C-28

the facts here, and the case was wrongly decided in any

event.

Arrow does not concern the State Bar of California,

which is established by the state Constitution and statute;

Arrow concerns the integrated bar of New Mexico, a

ereature of a rule of court. Nothing in Arrow even sug-

ation of New Mexico is charged with the broad seope of

publie duty imposed upon the California State Bar by the

Constitution and statutes of this State. The Arrow court

held that the New Mexico Bar Association could not

assert as authority for its lobbying activity a general duty

of lawyers to evaluate and give advice to the publie on

issues related to the administration of justice or improve-

ment of the legal system. The California State Bar,

however, relies for its authority not upon some general

duty, but upon the Constitution of this State and the

powers expressly and implicitly granted by the Legisla-

ture. The analysis of the New Mexico bar is accordingly

irrelevant to California.

Moreover. Arrow was simply decided incorreetly. Al-

though it purports to follow Abood, Arrow ignores the

Supreme Court's explicit proseription against injunetive

relief whieh, by restraining organization speech, would

impinge upon the First Amendment rights of the majority

in the organization. Any validity given to Arrow is sert.

ously in question following the decision of the Supreme

Court in Ellis, further restricting the negation of First

Amendment rights of members that Arrow approved.

The broad reading adopted by the Arrow court has also

been rejected by the Florida Supreme Court. In The

Florida Bar Re: Amendment to Integration Rule, No.

61.424, decided September 22, 1983, that Court held that

politieal aetivity by its bar, established by rule of Court,

C-29

was within the defined purpose of the bar “to improve the

administration of justice, and to advance the science

jurisprudence.” Opinion at 2.“ The Court, in determining

broadly at purpose, as the Arrow court failed to do.

4. Even If Abood Were Held To Apply, The Requested

Relief Would Not Be Available

Even if the principles that Abood stated for private

organizations were held to apply to the governmental

entity involved here the relief sought would not be per-

missible. If Abood applied here, no publie entity in Cali-

fornia could act in the future. Any citizen paying taxes to

support any entity could avoid payment of his taxes any

time such agency presented a position with which he

disagreed. Such a result would be crippling:

“Majority rule necessarily prevails in all constitu-

tional government including our federal, state,

county and municipal bodies, else payment of a tax

levied for a duly authorized and proper objective

could be avoided by the mere assertion of beliefs and

sentiments opposed to the accomplishment thereof.

In a government based on democratic principles, the

benefit as perceived by the majority prevails. And the

individual citizen would raise but a faint ery of

invasion of his constitutional rights should he seek to

avoid his obligation because of a difference in per-

sonal views.” DeMille v. American Fed. of Radio

Artists, 31 Cal. 2d 139, 150 (1947), cert. denied, 333

U.S. 876 (1948).

A copy of this opinion is attached hereto as Appendix A for the

convemence of the Court.

C-30

a. The Decision In Abood Does Not Permit An Injune-

tion Against The State Bar

Appellants ignore two vital aspects of Abood. First,

Abood’s prohibition of compulsory contribution was lim-

ited to expenditures which were both not germane to the

union's duties as a collective bargaining representative

and promoted political or ideological causes. Even as to

those areas, however, the Court did

Not hold that a union cannot constitutionally

spend funds for the expression of political views, on

behalf of political candidates, or toward the advance-

ment of other ideological causes not germane to

its duties as collective-bargaining representative.

Rather, the Constitution requires only that such

expenditures be financed from charges, dues, or as-

sessments paid by employees who do not object to

advancing those ideas and who are not coerced into

doing so against their will by the threat of the loss of

governmental employment.” 431 U.S. at 235-36.

Thus, denial of the broad injunctive relief sought was

upheld. 431 U.S. at 241.

D. Abood Limits Relief to Activities Whieh Are Not

Germane To the Propose For Which The Organiza-

tion Is Formed

In addition, appellants have made no attempt to

demonstrate that the challenged activities are not ger-

mane to the purposes for which the State Bar was formed,

as those purposes are defined by the California Constitu-

tion and the relevant sections of the Business and Profes-

sions Code. Instead, appellants rely on Arrow, which

declares that any activity outside of the very narrow

range of admissions, discipline, and regulation is not

germane. This approach, however, fails utterly to meet the

C-31

burden placed upon plaintiffs by both Abood itself and the

interpretation of that ruling in Ellis. That the Arrow

court elected not to address this issue does not excuse

appellants from this burden.

Appellants assert that Lathrop v. Donohue, 367 U.S. 820

(1961) supports their belief that “the elevation of educa-

tional and ethical standards” are the sole permissible

activities of a unified Bar. (A. O. B. at 13.) However, an

analysis of Lathrop shows that the reference made by the

Court was to “improving the quality of the legal service

available” and to “raising the quality of professional

services. 367 U.S. at 843. In concluding that this defined

interest was met by the activities of the Wisconsin bar,

the Court reviewed those activities extensively, citing the

purposes as stated in the bylaws:

“to aid the courts in carrying on and improving the

administration of justice; to foster and maintain on

the part of those engaged in the practice of law high

ideals of integrity, learning, competence and public

service and high standards of conduct; to safeguard

the proper professionai interests of the members of

the bar; to encourage the formation and activities of

local bar associations; to provide a forum for the

discussion of subjects pertaining to the practice of

law, the science of jurisprudence and law reform, and

the relations of the bar to the public, and to publish

information relating thereto; to the end that the

publie responsibilities of the legal profession may be

more effectively discharged.” 367 U.S. at 828-29.

The Court's review of the activities and policies of the

Wisconsin Bar shows programs very similar in scope and

content to the activities complained of here, including

lobbying and the establishment and support of sections

and committees. 367 U.S. 829, u. 7, 834-842. Thus, Lathrop

C-32

provides no support for appellants’ attempt to impose

their own beliefs on the majority of the State Bar.

5. Compelled Membership And Payment Of Dues Do

Not Infringe Rights of Association

The claim that compelled membership in and payment

of dues to an integrated state bar infringes rights of

association has already been considered and rejected by

the United States Supreme Court in Lathrop v. Donohue.

supra. No new authority calls into question the holding of

Lathrop and in fact a recent Supreme Court case address-

ing rights of association supports the trial court's finding

in this case that the State Bar has not infringed appel-

lants rights. See Roberts v. United States Jaycees, 52

U.S.L.W. 5076 (1984).

a. Lathrop v. Donohue

Appellants attempt to underplay the significance of the

precedent of Lathrop by focusing their discussion of the

ease on the Court's failure to reach a decision on the free

speech issues raised in this case. The Court, however, did

decide that associational rights were not infringed by

association with and payment of dues to an integrated

state bar, the activities of which were very similar to those

of the California State Bar.

In upholding the constitutionality of the integrated bar

of the State of Wisconsin, a four-justice plurality of the

Supreme Court specifically held that the only compulsion

involved was the compelled financial support represented

by the payment of dues, not any other membership activ-

ity. The membership requirement was held to infringe no

associational rights. 367 U.S. at 828, 842. In their concur-

ring opinion, Justices Harlan and Frankfurter reached

the same conclusion. 367 U.S. at 850-51.

C-33

Members of the State Bar in California are compelled

only to pay their membership fees. Like the lawyers in

Lathrop, they are not compelled to attend meetings, to

voice affirmation for any position taken by the State Bar.

to refrain from speaking in opposition to positions taken

by the State Bar, or even to vote on issues on which they

are entitled to vote as members of the State Bar. 367 U.S.

at 828. Appellants do not conter.d otherwise. Thus, on the

associational issue, Lathrop is the persuasive authority.

In emphasizing the multifaceted aspect of the Bar's

endeavors, the plurality opinion coneluded that:

“Given the character of the integrated bar shown on

this reeord, in the light of the limitation of the

membership requirement to the compulsory payment

of reasonable annual dues, we are unable to find any

impingement upon protected mghts of association.”

367 U.S. at 843.

Although the Court in Abeood noted that it did not

believe that the majority in Lethrop had agreed on any

proposition other than that the constitutional issue

should be reached, 431 U.S. at 233, u. 29, that statement

must be read in the context of the narrow issues

presented in Abood. The question that was not decided by

the Court in Lathrop concerns infringement of rights of

speech.

That question was determined in California in De Mille,

supra, wi ch rejected plaintiff's contention that the fee

requirement was unconstitutional because it represented

compulsory expression. The contribution was not an indi-

vidual expression of the views of the plaintiff, the Court

held, nor was the use of the fund a use of his money to

express his views:

C-34

union represents the common or group interests of

its members, as distinguished from their personal or

private interest. “Structurally and functionally, a

labor union is an institution which involves more

than the private or personal interests of its members.

It represents organized, institutional activity as con-

trasted with wholly individual activity. This differ-

ence is as well defined as that existing between

individual members of the union.’ 1 Cal. 2d at 149

(citations omitted).

The Court also observed that, in an organization,

[mere disagreement with the majority does not

absolve the dissenting minority from compliance with

action of the association taken through authorized

union methods. And compliance — here payment by

the plaintiff of the assessment — would not stamp

his act as a personal endorsement of the declared

view of the majority.* Id. at 150.

Thus, Lethrop is authoritative and consistent with

DeMille. If, however, the Abeod footnote were read

broadly to limit the decision in Lathrop, the opinions

expressed by a majority of the members of the Lathrop

court are fully consistent with controlling (California

authority

b. Roberts v. United States Jaycets

In Roberts . United States Jaycees, 52 S. LW. 5076

(1984), the Supreme Court held that application of the

* Indeed, the Court drew an analogy te « bar association, which

wses its funds to support ails which the majomty consider worthy of

support, but ub which courts will net interfere merely because some

members disagree with that pesitien. 3) (al Dd at 150

——

C-35

Minnesota Human Rights Act to require the national

organization of Jaycees to admit women as voting mem-

bers to local Minnesota chapters did not abridge male

members’ freedom of association. 52 U.S.L.W. at 5081. In

reaching that result, the Court defined the two aspects of

protected associational rights: intimate human relation-

ships; and association for expressive purposes relating to

activities protected by the First Amendment such as

speech, assembly, petition for redress of grievances, and

the exercise of religion. Outside of those two narrow

eategories which are entitled to broad protection, the

amount of protection depends on a balance of interests to

determine the nature of the right at issue. 52 U.S.L.W. at

5078.

The Court found that the degree of protection afforded

“may vary depending on the extent of which one or the

other aspect of the constitutionally protected liberty is at

stake in a given case.” Id. Thus, determination of the

nature of the right involved is a fundamental step in

determining the amount of protection afforded the right:

“Determining the limits of state authority over an

individual’s freedom to enter into a particular associ-

ation therefore unavoidably entails a careful assess-

ment of where that relationship's objective

characteristics locate it on a spectrum from the most

intimate to the most attenuated of personal attach-

ments.... We need not mark the potentially signifi-

cant points on this terrain with any precision. We

note only that factors that may be relevant include

size, purpose, policies, selectivity, congeniality and

other characteristics that in a particular ease may be

pertinent.” 52 U.S.L.W. at 5079 (citations omitted).

Intimate associational rights protect individuals’ free-

dom of choice regarding matters such as family, marriage,

C-36

and schooling. The matters involved in such association

frequently fall within the zone of privacy recognized to be

constitutionally protected. Such association usually in-

volves small numbers of individuals who are closely re-

lated and such association is usually based upon highly

personal choices. See Roberts, 52 US.L.W. at 5078-5079.

Expressive associational rights, as defined by the

Court, involve the protection of “collective effort on be-

half of shared goals as a corollary of an individual's

freedom to speak, worship, and petition the government.

52 U.S.L.W. at 5079. The Court set forth three ways in

which governmental action might infringe on that free-

dom: by withholding benefits because of membership in a

disfavored group; by requiring disclosure of membership

in a group; or by interfering with the internal organiza-

tion of a group. It was the last of these that was involved

in Roberts; the Court found that constitutional protection

may extend to choices not to associate, where a group

seeks to exclude those whose interests are inimical to the

purposes for which the group was formed. 52 U.S.L.W. at

5080. Infringement of such constitutionally protected as-

sociational rights is permissible only when justified by a

compelling state interest. Id.

The issue of infringement does not arise, however, until

the determination is made that the claimed rights are in

fact constitutinally protected. Appellants ignore the fact

that not all interpersonal dealings warrant constitutional

protection, 52 U.S.L.W. at 5079, and claim infringement

of their associational rights without performing the re-

quired analysis. Application of that analysis in this case

shows that the nature of the rights affected and the

amount of impact on these rights do not warrant constitu-

tional protection. Neither intimate associational rights

nor expressive associational rights are affected by Califor-

C-37

nia’s requirement that attorneys practicing in California

belong to and pay dues to the State Bar.

Association with the State Bar has none of the charac-

teristics marking association of an intimate nature. This

Court reed only consider the type of relationships af-

forded such constitutional protection and the values un-

derlying such protection to find the associational aspects

of membership in the State Bar does not involve such

personal and emotional bonds. Like the Jaycees organiza-

tion, the California State Bar is large and ineludes mem-

bers from varied backgrounds representing a variety of

interests. As in the Jaycees case, “much of the activity

central to the formation and maintenance of the associa-

tion involves the participation of strangers to that rela-

tionship.” 52 U.S.L.W. at 5079. Compelling association

with the State Bar does not enter into the realm of highly

personal relationships. Attorneys need only become mem-

bers and pay their fees. No further association or activity

is required.

Similarly, the claimed right of the individual appellants

not to associate with the State Bar does not implicate any

of the expressive rights defined by the Court. Although

appellants remain free to speak and act in support of

their own beliefs, they wish to silence the group and

interfere with the purpose for which it was formed, a

purpose supported by a governmental interest in inelu-

sion, not exclusion. Their claimed right not to associate

finds no support in Roberts.

D. The Individual Members Of The Board Of Gover-

nors Cannot Be Held Liable

Appellants sought restitution of the sums spent for

allegedly inappropriate activities from the individual

members of the Board of Governors. However, appellants

C-38

have never alleged or placed on the record any evidence

that those members acted in bad faith, or in any way

outside of the scope of their duties as members of the

Board of Governors. Under these circumstances, there is

no authority for any such restitutionary order.

In fact, California state law is to the contrary. Stanson

v. Mott, 17 Cal. 3d 206 (1976), specifically overruled an

earlier decision of the California Supreme Court estab-

lishing strict liability for publie officials authorizing the

improper expenditure of public funds. 17 Cal. 3d at 233,

overruling Mines v. Delvalle, 201 Cal. 273 (1972). The

Stanson court adopted instead the requirement that pub-

lie officials use

due care, i.e., reasonable diligence, in authorizing

the expenditure of public funds, and may be subject

to personal liability for improper expenditures made

in the absence of such due care.” 17 Cal. 3d at 226-27.

Various factors were set forth by the Court in determin-

ing whether a public official acted with the requisite due

care. They were:

I. whether the expenditure’s impropriety was

obvious;

2. whether the official knew of the possible inva-

lidity of the expenditure;

3. whether the official relied on legal advice or on

the presumed validity of an existing legislative enact-

ment or judicial decision. 17 Cal. 3d at 227.

There is no evidence on the record showing liability

under these standards. Appellants submit now, however,

that they should be permitted to amend their complaint

(A. O. B. at 19-20). That permission was never sought

below, nor was any evidence brought forward to show that

J

C-39

they could so amend, or that material issues of fact

existed. Estate of Supple, 247 Cal. App. 2d 410 (1966)

cited by appellants, denied the very relief appellants seek,

where, as here, no allegation of bad faith was made and

where, as here, no evidence was in the record to support

the allegations.

Further, although the plaintiff in Stanson v. Mott was

permitted to amend his complaint, this permission was

granted because, under the existing rule prior to Stanson,

the Stanson allegations had not been required. However,

such is not the case here. The Stanson standard has been

the law since 1976, and appellants were bound by it in

drafting their complaint, and now.

Further, even accepting all of the allegations of the

complaint as true, there are and can be no allegations

which indicate that any expenditures were obviously im-

proper, that any member of the State Bar Board of

Governors knew of any potential invalidity, or that the

State Bar Board of Governors did not rely on the pre-

sumption of validity given by the legislative approval of

its activities. Such allegations could not be made, in light

of the Legislature's actions, and the long-standing rule of

law governing public agencies in California.

There is, simply, no basis for the attempt to obtain

restitution from the individual members of the Board of

Governors. Thus, in any event, the summary judgment in

favor of the individual defendants was properly granted,

dismissing them from the lawsuit with prejudice.

C-40

V. CONCLUSION

For the reasons set forth above, respondents respect-

fully submit that the decision of the trial court should be

affirmed in all respects.

DATED: October 2, 1984

Respectfully submitted,

HERBERT M. RoseNTHAL

Truitt A. Ricney, Jr.

MAGDALENE V. O'Rourke

and

HvUPSTEDLER, MILLER, CARLSON &

BEARDSLEY

Rosert S. THomMpson

LauRIE D. ZSLON

Mary E. Heaty

By

LAURIE D. Zr

Attorneys for Respondents

APPENDIX D

APPENDIX D

S.F. 25050

In the Supreme Court

OF THE

State of California

EDDIE KELLER, et al.,

Plaintiffs/Appellants /

Cross-Appellees,

V.

STATE BAR OF CALIFORNIA, ETC., et ul.,

Defendants /Respondents/Appellees.

OPENING BRIEF ON THE MERITS

OF DEFENDANTS/RESPONDENTS/ APPELLEES

N HERBERT M. ROSENTHAL HUFSTEDLER, MILLER, CARLSON

Truitt A. Rienkv. JR. & BEARDSLEY

MAGADALENE V. O’RourKE RoBERT S. THOMPSON

555 Franklin Street LAURIE D. ZELON

San Francisco, CA 94102 Mary E. HEALY

(415) 561-8200 JupITH R. STARR

700 South Flower Street

Suite 1600

Los Angeles, CA 90017

(213) 629-4200

Attorneys for Defendants

Respondents /Appellees

I.

II.

III.

IV.

D-i

TABLE OF CONTENTS

A. The State Bar Has Been Consistently

Treated As Government...............

B. The Court of Appeal Erred In Holding

The State Bar Is Not Government .....

1. Government May Exercise

Diseretionary Powers..............

Government May Be Funded By A

D h · sce

3. Membership Is Not An Issue

4. The State Bar Must Be Treated As

e ˙ i ....

CALIFORNIA LAW SETS GUIDELINES

FOR GOVERNMENT SPEECH THAT

PROTECT FIRST AMENDMENT RIGHTS

A. Stanson Strikes The Balan eee

B. Miller Provides Additional Guidelines

C. Miller and Stanson Apply To This Case

CALIFORNIA LAW COMPLIES WITH

FEDERAL CONSTITUTIONAL RE-

Ee sececeseccéscccecescecses

A. Federal Law Permits Government

nn

B. Required Association With The State

Bar Does Not Violate Plaintiffs’ Free-

D eee

C. Speech Activity By The State Bar Does

Not Implieate The Individual ..........

D-ii

TABLE OF CONTENTS

V. THE STANDARDS GOVERNING PRI-

VI.

VATE LABOR ORGANIZATIONS

SHOULD NOT BE APPLIED TO THE

„. %%

A. The Labor Union Cases Are Not Appli-

. „ %ĩ0“ é

B. The Court of Appeal Improperly

Adopted “Political and Ideological” As

A Standard for Evaluating Speech Of

Tae Geate DSP occ (

C. Decisions In Other Jurisdictions Deal-

ing With Unified Bars Do Not Deal

With The Issue Central To This Case...

D. The Court Incorrectly Interpreted The

U.. ...

E. The Court of Appeal's Unwarranted Ex-

pansion Of The Abood Test Confliets

With First Amendment Rights

1. Abood Protects Free Speech........

2. The Expanded Court of Appeal Test

.....

3. Unrestrained Personal Liability Will

Inhibit Protected Speech...........

4. The Court of Appeal’s Test Is Based

On Prohibited Content — Based Dis-

. ö....

THE TRIAL COURT PROPERLY

GRANTED SUMMARY JUDGMENT IN

FAVOR OF THE INDIVIDUAL DEFEND-

BITES »KWZ. ... „%

Page(s)

25

25

27

VII.

D-iii

TABLE OF CONTENTS

Page(s)

The Judgment In Favor Of The Individ-

ual Defendants Was Required By Law.. 38

The Court of Appeal Decision

Improperly Requires the State Bar To

Justify Each Of Its Activities In

Response To A Categorical Challenge .. 40

The Undisputed Facts Establish Defend-

ants’ Right To Prevail As A Matter Of

D-iv

TABLE OF AUTHORITIES

Cases

Page(s)

Abood v. Detroit Board of Education, 431 U.S. 209,

52 L. Ed. 2d 261, 97 S. Ct. 1782 (1977) ........

„e auseseees D-30, 31, 33, 34, 36, 38, 43

Anderson v. Liberty Lobby, Inc., 54 U.S. L. W. 4755

(June 25, 19860)))))0:m: cece cece eee ecees D-41

Angelus Chevrolet v. State, 115 Cal. App. 3d 995,

171 Cal. Rptr. 801 (1981) ........- eee eee eee D-41

Arrow v. Dow, 544 F. Supp. 458 (D.N.M. 1982) ... D- 30

Baggett v. Bullitt, 377 U.S. 360, 12 L. Ed. 2d 377,

84 S. Ct. 1816 (1964) ...... . D-33

Bettencourt v. Industrial Accident Comm., 175 Cal.

559, 166 P. 323 (191177777 777 D-5

Brady v. State Bar of California, 533 F.2d 502 (9th

GG ˙ ˙¹1 mw ᷑ ꝛ ͤ D-7

Chicago Teachers Union, etc. v. Hudson, U.S.

— 89 L. Ed. 2d 232, 106 S. Ct. 1066 (1986) .. D-31

Chronicle Publishing Co. v. Superior Court, 54 Cal.

2d 548, 7 Cal. Rptr. 109, 354 P. 2d 637 (1960) .. D-6

Common Cause v. Bolger, 574 F. Supp. 672 (1982),

aff d. 461 U.S. 911, 77 L. Ed. 2d 280, 103 S. Ct.

ee D-21

Crawford v. Imperial Irrigation Dist., 200 Cal. 318,

Ie D-15

Daugherty v. Riley, 1 Cal. 2d. 298, 34 P. 2d 1005

„bbb d d e D-10

Ellis v. Brotherhood of Railway, Airline & Steam-

ship Clerks, 466 U.S. 435, 80 L. Ed. 2d 428, 104

SB. Ce. BGR eh) D-31, 33, 34

—— — — — oe

D-v

TABLE OF AUTHORITIES

CASES

Engel v. McCloskey, 92 Cal. App. 3d 870, 155 Cal.

D, ̃ĩ V ˙—» 55 D-12

Environmental Planning and Information Council,

etc. v. Superior Court, 36 Cal. 3d 188, 203 Cal.

Rptr. 127, 680 P. 2d 1086 (1984) .............. D-42

Erzinger v. Regents of the Univ. of Calif., 137 Cal.

App. 3d 389, 187 Cal. Rptr. 164 (1982), cert.

den. 462 U.S. 1133, 77 L. Ed. 2d 1368, 103 S. Ct.

, »A D-10, 18, 19

Falk v. State Bar, 411 Mich. 63, 305 N.W. 2d 201

% ²˙ AA ⁰¹ 0 recent D 29

FCC v. League of Women Voters of California, 468

U.S. 364, 82 L. Ed. 2d 278, 104 S. Ct. 3106

„ D-20, 21, 23, 25

First Nat’l. Bank of Boston v. Bellotti, 435 U.S. 765,

55 L. Ed. 2d 707, 98 S. Ct. 1407 (1978) ............

PP oe eT Pe eT ee ery Te D-31, 32, 36, 37

Gibson v. the Florida Bar, F. 2d — (11th

Cir., September 15, 1966)... 2... ccc ccc sccccces D-30

Good Government Group of Seal Beach, Inc. v.

Superior Court, 22 Cal. 3d 672, 150 Cal. Rptr.

258 (1978), cert. den. 441 U.S. 961, 60 L. Ed. 2d

1066, 99 S. Ct. 2406 (1979099-ĩũãrrr 000008, D-42

Gooding v. Wilson, 405 U.S. 518, 31 L. Ed. 2d 408,

L D-35

Hanna v. Plumer, 380 U.S. 460, 14 L. Ed. 2d 8, 85

r Gekunecsencebeoeweseus D-37

D-vi

TABLE OF AUTHORITIES

CASES

Page(s)

Herron v. State Bar of California, 212 Cal. 196, 298

Re D-8

Hishon v. King & Spalding, Inc., 467 U.S. 69, 81 L.

Ed. 59, 104 S. Ct. 2229 (198hh39łt: D-24

Kolender v. Lawson, 461 U.S. 352, 75 L. Ed. 2d

903, 103 S. Ct. 1855 (198g3⸗2:iõꝶ ne D-34, 35

Lathrop v. Donohue, 367 U.S. 820, 6 L. Ed. 2d

1191, 81 S. Ct. 1826 (1961) .......... D-8, 21, 22, 30

Lehane v. City and County of San Francisco, 30

Cal. App. 3d 1051, 106 Cal. Rptr. 918 (1972),

app. dismissed 410 U.S. 982, 35 L. Ed. 2d 698,

OG Se, BE · ˙¹i. 1 D-15; 17

Metromedia, Inc. v. San Diego, 453 U.S. 490, 69 L.

Ed. 2d 8, 85 S. Ct. 1136 (1965)............ D-37, 38

Miller v. California Commission on Status of Wo-

men, 151 Cal. App. 3d 693, 198 Cal. Rptr. 877,

app. dismissed U.S.. 83 L. Ed. 2d 15,

105 S. Ct. 64 (1984) D-9, 10, 12, 16, 17, 18, 19, 20, 25

Muskopf v. Corning Hospital Dist., 55 Cal. 2d 211,

11 Cal. Rptr. 89, 359 P. 2d 457 (1961) ......... D-10

NAACP v. Button, 371 U.S. 415, 9 L. Ed. 2d 405, 83

it. = YF) „„ „„ „„ D-36

NLRB v. General Motors Corp., 373 U.S. 734, 10 L.

Ed. 2d 670, 83 S. Ct. 1453 (1963) ............. D-26

New York Times v. Sullivan, 376 U.S. 254, 11 L.

Ed. 2d 686, 84 S. Ct. 710 (1964) .............. D-33

Pacific Gas & Electric Co. v. Public Utilities Comm.

of Calif., _— U.S. , 89 L. Ed. 2d 1, 106 8.

oi fF: „„ „„ D-21, 24, 25, 34

— —— — —

D- vii

TABLE OF AUTHORITIES

CASES

Page(s)

In Re Peterson, 208 Cal. 42 (1929) ............... D-7

Police Dept. of Chicago v. Mosley, 408 U.S. 92, 33

L. Ed. 2d 212, 92 S. Ct. 2286 (1972)........... D-33

Railway Employees Dept. v. Hanson, 351 U.S. 225,

100 L. Ed. 112; 76 S. Ct. 714 (1961) ....... D-21, 22

Regan v. Taxation With Representation of Washing-

ton, 461 U.S. 540, 76 L. Ed. 2d 129, 103 S. Ct.

D ˙ àz; bene en eas D-20, 21, 35

Roberts v. United States Jaycees, 468 U.S. 609, 82 L.

Ed. 2d 462, 104 S. Ct. 3244 (1984) ............ D-23

Rhyne v. Municipal Court, 113 Cal. App. 3d 807,

170 Cal. Rptr. 312 (198hhh:;::: D-5

Savelli v. Board of Medical Examiners, 229 Cal.

App. 2d 124, 40 Cal. Rptr. 171 (1983), cert. den.

380 U.S. 934, 13 L. Ed. 2d 821, 85 S. Ct. 940

ASR ae A Rae pte ... D-10

Schneider v. Colegio de Abogados de Puerto Rico,

565 F. Supp. 963 (1983), rev'd and remanded,

sub. nom. Romany v. Colegio de Abogados de

Puerto Rica, 742 F. 2d 32 (Ist Cir. 1984) ....... D-30

Scott v. Dixon, 720 F. 2d 1542 (11th Cir. 1983),

cert. den. U.S. ___, 83 L. Ed. 2d 64, 105 8.

, ee ee edad D-39

Service Employees’ Int l. Union v. Roseville Comm.

Hospital, 24 Cal. App. 3d 400, 101 Cal. Rptr. 69

%%% ct bade eeesesunenenena D-5

D-viii

TABLE OF AUTHORITIES

CASES

Page(s)

Sipple v. Chronicle Pub. Co., 154 Cal. App. 3d 1040,

201 Cal. Rptr. 665 (198hꝓ¹))⸗17õ1ů . eee D-42

Stanson v. Mott, 17 Cal. 3d 206, 130 Cal. Rptr. 697,

II Passim

State Bar of Calif. v. Superior Court, 207 Cal. 323,

Fe Ff) | a PrrrrrrrT TTT rrr D-8

Virginia State Board of Pharmacy v. Virginia

Citizens Consumer Council, Inc., 425 U.S. 748, 48

L. Ed. 2d 346, 96 S. Ct. 1817 (1976)........... D-33

West Virginia State Board of Education v. Barnette,

319 U.S. 624, 87 L. Ed. 1628, 63 S. Ct. 1178

„„ D-23, 24

Wooley v. Maynard, 430 U.S. 705, 51 L. Ed. 2d 752,

Saane) D-23, 24

Voung Americans for Freedom v. Gorton, 91 Wash.

2d 204, 588 P. 2d 195 (Wash. 19789) D-15

Constitution

California Constitution, Article VI, §9 ........ D-5, 10

Statutes

United States Code

GB UEC 6 IGG ö ö D-39

Business & Professions Code

§ 6000, et seg. (State Bar Act)) D-5

eo ö o N D-14

„„ D-6

- —— Le —

D- ix

TABLE OF AUTHORITIES

STATUTES

Page(s)

r ·öwmmm.· -m ˙rtt, m D-6

D cescssddesusen ss eeveescdodiaveesesa D-6

/ ĩ² ·ü cbidkhnneenebaeeeeebenves D-6, 17

%%%ͤA ̃ ³•ůAu:w D-6, 17

r ĩ •˙ ˙!cJʃÿ—I—. D-6, 17

ͤꝙ W WW-WMW -m ̃ ̃·m D-14

! ˙˙ 0. D-6, 17

r ² ˙ v en D-14

c ĩ˙è⅛˙ͤ»-oũ!»·’.·̃ mD i, D-14

D D-7, 14, 15

D ²˙iA²ꝛ·n- Ü? need enece D-8

Dos cb EWeeecebésacectveswcosesens ‘iced D-7

/ ĩ˙²ĩ ʃ—AQ—Q ˙¹ip 8 D-7

e D- 7. 10

D ²³˙¹AA²Ü˙¹˙L T0 eeKee’ D-7

Code of Civil Procedure

Eee ͤ —¹U˙itꝓP !ÜdÜ!Ü Üꝛꝝ“«“QÜÜÜ«Üi! shes akewueeny D-41

Evidence Code

p%%%%ium celhneknncendesbesegeunsdeees D-5

Fish & Game Code

Dr, ²˙ ˙AA ⁰ͥ QT D-10

Government Code

rm . D-5

D-x

TABLE OF AUTHORITIES

STATUTES

Page(s)

/ ĩ ²˙7U⁰tDÄ ] ZII. 7. D-10

D /! D-6

,, A D-6

Public Resource Code

Di dindan ded 000A ¹·¹ ww--.̃5Ü.ñ4⏑ ̃ r'Ü òV D-10

West Annot. Code, Rules Pt. 2, p. 243 (1986

%%% D-6

Treatises

H. Hart and A. Sacks, The Legal Process, 1-9 (tent.

D ̃ . ˙˙ D-35

K. Davis, Administrative Law Treatise § 3.9 (2d

r ankdeaeekie cawde oso D-10

L. Tribe, American Constitutional Law, § 12-26

Pe tikendenkkeawtedendadduthesawendews D-17, 35

M. Yudof, When Government Speaks xvi (1983) D-14, 35

Weil & Brown, Civil Procedure Before Trial § 10:10

/ ˙% T D-41

“s+ ——— — — — «

4 ~& weet i «

D-1

This brief is submitted on behalf of the State Bar of

California and the individual appellees below who are

former members of the State Bar’s Board of Governors.’

These parties seek affirmance of the summary judgment

entered by the trial court preserving the ability of the

State Bar to fulfill its legislatively and constitutionally

mandated role in California government.

I. INTRODUCTION

Plaintiffs challenge the propriety of certain fundamen-

tal categories of State Bar activities. They claim the

activities violate their first amendment rights because

they oppose the activities, because they consider the

activities “ideological and political” and because the ac-

tivities are funded by fees the Legislature requires all

attorneys practicing in the State to pay annually.

The case presented by plaintiffs’ pleadings was not the

ease decided by the Court ef Appeal; while plaintiffs seek

to enjoin Bar activity within broad areas outside of

regulation of attorney admission and discipline, the Court

of Appeal treated their claims as if they were limited

objections to the use of mandatory fees for specific activi-

ties within the broad categories with which Plaintiffs

disagree. From this mistaken view of the case, other

errors, including the ruling that the record was inade-

quate to support the summary judgment, flowed.

Plaintiffs’ challenge, however, is overbroad and cate-

gorical; they seek to enjoin all lobbying, all speeches by

State Bar presidents, all filing of amicus briefs and all

activity of the Conference of Delegates. The only specific

activity challenged by Plaintiffs was the State Bar's

‘Defendant Phyllis M. Hix does not join in this brief, and was not a

party to the proceeding in the Court of Appeal.

D-2

publication and dissemination of materials from its Inde-

pendence of the Judiciary program. Plaintiffs also seek to

hold individuals who served as members of the State

Bar’s Board of Governors personally liable for expendi-

tures made to support the challenged activities.

The right asserted by Plaintiffs is a negative right — a

right not to be associated with the State Bar or to finance

indirectly speech with which they may disagree. Plaintiffs

claim this right will be protected only if the State Bar is

prohibited from engaging in activities that may be classi-

fied as “political and ideological.” Plaintiffs assert that

the State Bar is analogous to a labor union, and that

federal labor union cases permit the relief they seek.

Plaintiffs’ claims, however, far exceed the rights recog-

nized in the labor union eases. In fact, Plaintiffs seek

greater restrictions on the State Bar’s activity than those

imposed on labor unions by arguing that the State Bar is

unable to act at all if a category of activity falls within the

all pervasive label of “political and ideological,” even

though the activity is germane to the State Bar's purpose.

Labor unions are merely required to rebate compelled

dues, rather than use them for purposes not germane to

collective bargaining; they are not required to cease their

activity.

Plaintiffs’ claim also fails because the State Bar is a

part of California government and is not analogous to a

labor union. The activities of the State Bar (and its

governing board) must be evaluated by the teachings of

the United States Supreme Court and this Court dealing

with compelled exactions that finance government speech

if the proper balance is to be struck between individual

rights and the rights and needs of the public for effective

government. This Court’s decision in Stanson v. Mott, 17

Cal. 3d 206 (1976) balances these interests and provides

D-3

both the scope necessary for government to govern and

the predictability necessary to permit individuals serving

as public officials to undertake their duties without being

paralyzed by fear of liability.

Stanson held that a governmental entity can use public

funds to advocate positions on matters within its statu-

tory authorization, so long as the “style, tenor and tim-

ing“ of the government speech does not taint the electoral

process. Government may engage in advocacy through

activities other than partisan electoral campaigning, in-

eluding lobbying, so long as explicitly or implicitly au-

thorized by statute. Stanson also protects the individuals

who constitute government from the paralyzing effeets of

the broad reaching liability imposed by the Court of

Appeal. Thus, this Court should affirm the application of

Stanson to the activities of the State Bar, and to all

authorized governmental activity, to ensure that govern-

ment is not limited to actions and speech only on topics

engendering no controversy. Only in this way can govern-

mental action be fully informed action.

At core, this ease concerns what standards control

government speech and when they apply. The key issue is

whether the State can, through constitutional and statu-

tory provisions, create a governmental entity and em-

power it to address issues with social and political

content when those activities are funded by a specific

regulated group, itself intimately related to a governmen-

tal function, rather than by the public at large. The State

Bar submits that while the attorneys of this State alone

finance the activities of the State Bar, it is entirely proper

for the State to create, empower and fund the State Bar

as it has. The State Bar is a governmental entity, and

Plaintiffs are, like all other taxpayers, compelled by the

state to finance activities of government.

D-4

The Court of Appeal erred in treating the State Bar as

a labor union and in so doing committed additional error

by adopting the phrase “political and ideological” as a

standard in its decision. The phrase has meaning in the

labor context when a union is charged with improperly

using dues compelled from union shop members or agency

shop nonmembers for purposes not germane to collective

bargaining. The phrase was adopted in that context by the

United States Supreme Court to define one area of union

activity unrelated to preservation of labor peace, which

was the purpose that the Court found justified compelled

association with a union. The use of the phrase is grossly

misplaced (and susceptible to far broader meaning) as a

test of the propriety of a governmental action. To pre-

clude state government and its individual subparts from

engaging in all activity with a “political and ideological”

content would prevent government from governing, and

would require it to shape its conduct to an unwieldy and

inappropriately vague standard.

By failing to r

This text is long and has been trimmed here. Open the source document for the complete record.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

A word about cookies

We need a few to keep you signed in and the library working. The rest help us see which pages people use and where they get stuck. They stay off unless you say yes.