Younger

Plaintiffs in this action are the Queen of Angels Hospital, a California corporation (Queen), and the Franciscan Sisters of the Sacred Heart, an unincorporated association (Motherhouse). They filed a declaratory relief action against the Attorney General to determine the validity of a lease agreement between Queen and a hospital corporation, W.D.C., as well as the legality of an agreement between Queen and Motherhouse for retirement pay. In answer, the Attorney General admitted the dispute and also challenged Queen’s agreement to pay certain fees claimed in connection with the lease. The trial court ruled in favor of plaintiffs on the issues of the lease and the fees, and in favor of the Attorney General on the issue of the retirement fund. Both sides have appealed.

Facts

The facts are not disputed; the materiality of some of the facts is.

Plaintiif Queen of Angels Hospital is a nonprofit corporation, first incorporated in 1927. Plaintiff Franciscan Sisters — Motherhouse—is a religious order, based in Illinois, composed of women of the Roman Catholic faith.

The hospital was established in 1927. In 1932, Queen added a 10-floor wing to its main building. A clinic moved…