Bourhis

*323 Opinion

If a corporation fails to pay its taxes, the state may suspend its corporate powers. The state may later revive those powers when the corporation pays its taxes. We must decide whether a corporation that files notices of appeal while its corporate powers are suspended may proceed with the appeals after those powers have been revived, even if the revival occurs after the time to appeal has expired. Two opinions from this court in the 1970’s held that revival of corporate powers validates an earlier notice of appeal. (Rooney v. Vermont Investment Corp. (1973) 10 Cal.3d 351 [ 110 Cal.Rptr. 353 , 515 P.2d 297 ] (Rooney); Peacock Hill Assn. v. Peacock Lagoon Constr. Co. (1972) 8 Cal.3d 369 [ 105 Cal.Rptr. 29 , 503 P.2d 285 ] (Peacock Hill).) We adhere to those decisions due to principles of stare decisis. Accordingly, these appeals may proceed.

I. Procedural History

Danielle Bourhis and others, including Brown Eyed Girl, Inc. (Brown Eyed Girl), a California corporation, filed the underlying lawsuit for property damage against John Lord and others. Before trial, defendants learned that the state had suspended Brown Eyed Girl’s corporate powers for nonpayment of taxes.…

A corporation may not “appeal from an adverse judgment in an action while its corporate rights are *330 suspended for failure to pay taxes.” (Reed v. Norman (1957) 48 Cal.2d 338, 343 [ 309 P.2d 809 ].) According to the majority, that rule does not apply when, after expiration of the appeal period, the corporation’s suspension is lifted. The majority reasons that the reinstatement retroactively validates a notice of appeal that the suspended corporation filed during the appeal period. I disagree. As an appellate court’s jurisdiction is wholly dependent upon the timely filing of a valid notice of appeal, the consequence should be dismissal of the appeal.

In support of its holding, the majority cites two 40-year-old decisions of this court, one of them with a vigorous dissent by Justice Stanley Mosk. In my view, those two decisions were wrong then, are wrong now, and should be overruled. Because, however, those decisions may have led to some reliance by the bench and bar, I would apply the rule I propose to future cases only. This is the sole reason for my agreement with the majority’s disposition.

I. Appellate Jurisdiction

A party seeking to appeal must file a notice of appeal…

DISCUSSION

With exceptions not relevant here, “the corporate powers, rights and privileges of a domestic taxpayer may be suspended, and the exercise of the corporate powers, rights, and privileges of a foreign taxpayer in this state may be forfeited,” if a corporation fails to pay its taxes. (Rev. & Tax. Code, § 23301; see also id., § 23301.5 [similar provision regarding the failure to file a tax return].) (All further statutory references are to the Rev. & Tax. Code.) A corporation whose powers have been suspended may apply with the Franchise Tax Board for reinstatement after satisfying its obligations. (§ 23305.) If the statutory requirements are met, the Franchise Tax Board issues a “certificate of revivor.” (§ 23305.) “Upon the issuance of the certificate [of revivor] by the Franchise Tax Board the taxpayer therein named shall become reinstated but the reinstatement shall be without prejudice to any action, defense or right which has accrued by reason of the original suspension or forfeiture . . . .” (§ 23305a.) Brown Eyed Girl purported to file notices of appeal while its corporate powers were suspended. In general, a “corporation may not prosecute or defend an action, nor…