State of California v. Superior Court

Factual and Procedural History

Petitioner State of California is a defendant in a civil action pending in respondent Superior Court of Sacramento County. In that action real parties in interest (hereafter plaintiffs) are suing defendants George W. Artz, Meramente, Inc., a California Corporation, and petitioner. Petitioner filed a general demurrer to the complaint on October 22, 1982, which was overruled by respondent court on December 14, 1982.

Petitioner thereafter filed this writ proceeding alleging that respondent acted in excess of its jurisdiction in overruling the demurrer. We issued an alternative writ of prohibition.

The complaint, filed by plaintiffs on behalf of themselves and a class, alleges as follows:

Defendant George W. Artz is president and principal stockholder of defendant Meramonte, Inc., Artz and Meramonte, Inc., operate a real estate business under a license issued by petitioner’s Department of Real Estate. On or about June 7, 1979, defendant Artz entered into an agency agreement with Bruce Stuart, whereby Stuart would operate a property management business in Davis known as Rental Services. Rental Services was to be a subsidiary of Meramonte,…