Continental Insurance v. City of Los Angeles

This is an appeal upon the judgment-roll from a judgment of the superior court rendered upon plaintiffs’ refusal to amend their third amended complaint in an action to recover the amount of insurance paid by them for a loss by fire alleged to have been caused by the negligent construction and maintenance of electric wires in the City of Los Angeles.

A general demurrer to the third amended complaint was sustained on the ground that plaintiffs’ claim should have been presented to the board of public service commissioners of the City of Los Angeles before suit was begun, and upon the ground that suit should have been brought against the said board. Appellants contend that under the provisions of the charter of the City of Los Angeles the board of public service commissioners is a special agency, only, of the city. Respondent contends that the board has complete authority over the city’s electric system and is made solely responsible for the management of the same, and that the department of public service is, under the provisions of the charter, a municipal organization of independent functions, that it is a legal entity, and is to be conducted as a distinct and separate business…