Matthews

Pacific Homes, a California nonprofit corporation, has for many years in this and other states under the aegis of the United Methodist Church, operated retirement facilities for the aged under so-called life or continuing care contracts 1 which constitute a kind of annuity insurance whereunder payments are made in services and commodities in return for a lump sum transfer of cash at the outset of the contractual relationship with the continuing care recipient payor. The state, having in mind a salutary concern for the possibilities of abuse by those who undertake to provide such care, has since 1919 evidenced its continuing interest through statutory regulations and controls pertinent to the subject. For our purposes those statutory provisions were basically found in Welfare and Institutions Code sections 16300-16318. 2 In addition to requiring a state license for the provider of benefits (§ 16200), the function of which is to require a given standard or quality of care, the statutes likewise specify the necessity for a “certificate of authority” (§ 16300) which is a prerequisite to the receipt of a transferor’s consideration in exchange for a commitment by the provider…

I concur in the view that plaintiff has no standing to sue. But I would go further and hold that the State of California has no liability for failure to revoke a state license or certificate of authority on the ground of inadequacy of financial reserves. Interpretation of a cor *432 potation’s financial statements and evaluation of its true financial condition involve an exercise of the state’s discretionary function, for abuse or neglect of which the state is not liable. (Gov. Code, §§ 818.4, 818.2, 820.2, 821.2.)

Pacific Homes, a California nonprofit corporation, has for many years in this and other states under the aegis of the United Methodist Church, operated retirement facilities for the aged under so-called life or continuing care contracts [1] which constitute a kind of annuity insurance whereunder payments are made in services and commodities in return for a lump sum transfer of cash at the outset of the contractual relationship with the continuing care recipient payor. The state, having in mind a salutary concern for the possibilities of abuse by those who undertake to provide such care, has since 1919 evidenced its continuing interest through statutory regulations and controls pertinent to the subject. For our purposes those statutory provisions were basically found in Welfare and Institutions Code sections 16300-16318. [2] In addition to requiring a state license for the provider of benefits (§ 16200), the function of which is to require a given standard or quality of care, the statutes likewise specify the necessity for a "certificate of authority" (§ 16300) which is a prerequisite to the receipt of a transferor's consideration in exchange for a commitment…