Escondido Imports, Inc. v. Department of Motor Vehicles

In cases consolidated for appeal, Billy D. Norman, doing business as Norman’s Auto Dismantlers, a licensed automobile dismantler, and Escondido Imports, Inc., a licensed automobile dealer (both here referred to as licensee), appeal a judgment granting summary judgment to the state Department of Motor Vehicles (DMV) and denying summary judgment to the licensee on its complaint for declaratory relief. The gist of the complaint is Vehicle Code section 4456.1, providing for an adminis trative service fee, and section 9263, providing for an investigation service fee, assessed against the licensee in certain events without advance notice or hearing, are unconstitutional because they represent a taking of a significant property interest without notice and an opportunity to be heard (U.S. Const., 14th Amend.; Cal. Const., art. I, § 17).

Generally, the statutes in question relate to reporting requirements detailed as to timing, and require the licensees to pay DMV $15, in the case of automobile dismantlers (§ 9263), or $5, $10, or $15, in the case of automobile dealers (§ 4456.1), when the licensee fails to submit in a timely fashion the required documents to DMV (appens. A and B…