Michalko

Grand Central Liquors, Inc., doing business as Ninety-Nine Cents Only Stores and Ralph’s Five, Dime and Twenty-Five Cents Stores (Grand Central) appeals from a judgment adverse to it on its prayer for declaratory relief and denying its prayer for injunctive relief, following a court trial. We affirm the judgment.

Procedural Statement

In a first amended complaint filed November 20, 1985, Grand Central alleged that the Director of the California State Lottery (Director), unless enjoined, would unlawfully terminate Grand Central’s contract to sell lottery tickets on the ground that Grand Central’s policy of selling those tickets at 99 cents ($0.99) violated Government Code section 8880.31, subdivision (b).

In their answer the Director and the California State Lottery Commission (Commission; collectively, defendants) denied the complaint’s material allegations and asserted, as an affirmative defense, Grand Central’s failure to exhaust administrative remedies.

On June 30, 1986, Grand Central’s request for the issuance of a preliminary injunction was denied and a temporary restraining order issued earlier was dissolved. On July 24, 1986, this court denied Grand Central’s…