Connecticut Indemnity Co. v. Superior Court

The majority holds that under the facts established in this case, a city council acted within its legislative authority when it issued subpoenas to insurance companies requiring them to disclose information about the liability insurance coverage of individuals and businesses that were potentially responsible for local groundwater pollution. I agree.

The majority identifies three requirements for a valid legislative subpoena: (1) the subpoena has been authorized by ordinance or similar enactment; (2) the information sought is pertinent to a legislative investigation; and (3) the subpoena serves a valid legislative purpose. Again, I agrfee.

Regarding the third of these requirements, the majority assumes that a subpoena has a valid legislative purpose only if the information sought will be useful for some purpose other than litigation. The majority concedes that liability coverage information will be useful to the city in litigation that the city contemplates bringing against the individuals and businesses potentially responsible for the groundwater pollution. But the majority claims to find another, nonlitigation purpose for the subpoenas based on the city’s need to make…

We granted review to determine whether a city council, pursuant to a legislative investigation of toxic contamination of local groundwater, is authorized by Government Code section 37104 to issue subpoenas for the purpose of obtaining information relating to liability insurance coverage and claims concerning parties believed to be legally responsible for the contamination, where it appears likely that the city also might employ that same information in the course of prospective litigation. As we shall explain, controlling authority establishes that a city may issue legislative subpoenas when it has been authorized by ordinance or similar enactment to do so, when issuance of the subpoenas serves a valid legislative purpose, and when the witnesses or material subpoenaed are pertinent to the subject matter of a legislative investigation. We conclude, contrary to the determination reached by the majority of the Court of Appeal, that the city satisfied these requirements in this case.

I.

The record indicates that 600 acres of groundwater in a central business and residential area of the City of Lodi (subsequently referred to as Lodi, or the city) are contaminated with a…

Randall A. Hays, City Attorney; Envision Law Group, Michael C. Donovan, Lafayette, Cecelia C. Fusich, Palo Alto, John R. Till and Brian R. Paget, Assistant City Attorneys; Zevnik Horton Guibord McGovern Palmer & Fognani, Los Angeles, Bret A. Stone and Adam Babich, Deputy City Attorneys, for Real Party in Interest.

Meyers, Nave, Riback, Silver & Wilson and Rick W. Jarvis, San Leandro, for 17 California Cities and Counties as Amici Curiae on behalf of Real Party in Interest.

GEORGE, C.J.

We granted review to determine whether a city council, pursuant to a legislative investigation of toxic contamination of local groundwater, is authorized by Government Code section 37104 to issue subpoenas for the purpose of obtaining information relating to liability insurance coverage and claims concerning parties believed to be legally responsible for the contamination, where it appears likely that the city also might employ that same information in the course of prospective litigation. As we shall explain, controlling authority establishes that a city may issue legislative subpoenas when it has been authorized by ordinance or similar enactment to do so, when issuance of the subpoenas serves a…