Barceloux v. Maxine D. Dow

The present proceeding grew out of various contracts entered into during the years 1948 and 1950, between the plaintiffs and defendant Landier Management Company, for the transportation of the pupils of plaintiff school districts. Within a year following the letting of the last contract, it was represented to the plaintiffs that three members of their governing board had an interest contrary to law in the subject of certain of the aforesaid agreements. Accordingly, in November of 1951, plaintiffs filed an action for declaratory relief wherein the asserted interest was set forth and wherefore it was prayed that the contracts in question be declared void ad initio and they recover the entire sum paid out thereunder, amounting to $1,548,852.74. The Landier defendants appeared by way of answer, which included a denial that the three members participation in the several transactions constituted an "interest" proscribed by California statutes. Much of the then pertinent law is discussed in People v. Becker (1952), 112 Cal. App. 2d 324 [246 P.2d 103], and People v. Elliott (1953), 115 Cal. App. 2d 410 [252 P.2d 661], which sustained the removal from office of two board members mentioned in the complaint for declaratory relief.