Manning

In this case we consider the circumstances under which real estate licensees may be subject to discipline for wilfully disregarding the Subdivided Lands Act. David H. Fox, as Commissioner of the Department of Real Estate, appeals from a judgment of the Superior Court of El Dorado County, which directed him to set aside an administrative decision imposing discipline against the real estate licenses of Joseph William Ellis Manning, Golden Chain Enterprises, Inc. (Golden Chain), and Kenneth DeArment Milner, and to enter a new decision imposing no discipline against Manning and Golden Chain, and to reconsider the discipline imposed against Milner. The commissioner contends the discipline was properly imposed against Manning and Golden Chain for their participation in the creation of an illegal subdivision in 1977 and 1978, and against Milner for negligent supervision of Manning. We agree and shall reverse the judgment.

1. The Cast of Characters

Plaintiff Manning was, at the time of these events, a licensed real estate salesperson. His license was restricted pursuant to Business and Professions Code section 10156.5, since he had been the subject of four previous disciplinary…