THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


S U M M A R Y


DIARY: April 14, 2000 09:00 AM Friday; Rod Welch

Jury duty group 213 Superior Court, rent control case.

1...Summary/Objective
2...Arrived at Court and Signed In
3...Assigned to Court #608 for a Rent Control Dispute
4...Dominate Intent to Raise Rents v. Compliance with Rent Control Rules
5...Long Way Around, Short Way There
6...Judging Motives of Voluntary Agreements Slows March of Civilization
7...Political Force That Disrupts Markets Harms Those Being "Helped"
8...Criminal Law Reduces Risks that Lead to Injury
9...Civil Law Promotes Risk Taking to Lift Civilization by Innovation
10...Great Nations Pay Dearly to Sustain Their Values
11...Like the Law, First Principles Grind Slowly, But Cannot Be Escaped
12...Assignment as Alternate Juror


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CONTACTS 
0201 - Superior Court of State of Californ  415 554 4170 fax or 800...
020101 - Hon. Wallace P. Douglas; Assistant Presiding Judge
020102 - Department XX

SUBJECTS
Jury Duty
Markets V. Fair Allocation
Long Way Around Short Way There
Process v. Prescription Male Female Binary Perspective on Values

0806 -    ..
0807 - Summary/Objective
0808 -
080801 - Follow up ref SDS 22 0000, ref SDS 21 0000.
080802 -
080803 - Appeared for Jury duty.  Assigned to a jury pool in a rent control
080804 - case.  Plaintiff tenant was evicted from a rental unit and claims
080805 - entitlement to damages because the dominant motive for eviction was
080806 - not for the landlord to occupy the unit.  Plaintiff must prove that
080807 - the dominant intent was to raise rents, and that personal use of the
080808 - unit was only a secondary intent of the landlord.  Defendant landlord
080809 - maintains all the rules were followed, and this justifies a finding of
080810 - no liability.  Was selected as an alternate juror and must report for
080811 - the first day of trial beginning on 000418.  Trial is expected to last
080812 - 2 - 3 weeks.
080813 -
080814 -
080815 -
080816 -
080817 -
0809 -
0810 -
0811 - Administration
0812 -
081201 -  ..
081202 - Arrived at Court and Signed In
081203 -
081204 - Juror ID:  200310516
081205 -
081206 - Juror Group:  213
081207 -
081208 -     Instructions said to report at 0900...
081214 -
081215 - Took a cab, cost $9 with a $1 tip.
081216 -
081217 - Jury room attendant said jurors pay for their transportation.
081218 -
081219 -
081220 -
081221 -
081222 -  ..
081223 - Assigned to Court #608 for a Rent Control Dispute
081224 - Dominate Intent to Raise Rents v. Compliance with Rent Control Rules
081225 -
081226 -
081235 -
0813 -
0814 -
0815 - 0939
0816 -
081601 - An initial panel of 24 jurors was called based on random selection by
081602 - computer from the entire pool of about 50 people.  I was not among
081603 - the initial 24 jurors.
081604 -
081605 - In this case, a tenant was evicted from a rental unit and claims this
081606 - violated rent control rules.  Plaintiff's counsel explained the
081607 - violation rests on finding that the "dominant" intent of the landlord
081608 - was to raise the rent, rather than to occupy the unit.  If the jury
081609 - finds that the landlord's dominant intent was to occupy the unit, and
081610 - that raising the rent was a secondary intent, plaintiff loses the
081611 - case.
081612 -
081613 - Peremptory challenges excused 12 people, so the three alternate
081614 - jurors had to be selected from the those of us in the remaining pool.
081615 -
081616 - When questioned about my opinion on the rule of law at issue, I
081617 - explained background in construction and as an arbitrator.  Cited
081618 - residence at a rental complex where these issues have been strongly
081619 - pursued by the Tenants Association for the past 30 years.
081620 -
081621 -
081622 -
081623 -  ..
081624 - Long Way Around, Short Way There
081625 - Judging Motives of Voluntary Agreements Slows March of Civilization
081626 - Political Force That Disrupts Markets Harms Those Being "Helped"
081627 -
081628 - Noted my lack of support for efforts to use political force for
081629 - disrupting free market access to goods and services, here, apartment
081630 - rental space, in order to benefit tenants who would be dislocated at
081631 - the expense of those willing to pay more.
081632 -
081633 - Objection arises from the proposition that forceful disruption of
081634 - markets ignores the rule of civilization:  the...
081635 -
081636 -                long way around is the short way there,
081637 -
081638 - ...and thereon harms everyone because it reduces incentive to
081639 - innovate, build, improve and maintain facilities, and to increase
081640 - earnings, since working harder is not adequate to achieve objectives.
081641 - Substituting political for free market forces dislocates resources
081642 - from increasing earnings, which increases taxes for helping needy
081643 - people, and instead directs time and effort toward gaining political
081644 - advantage, which thereby reduces resources for helping the
081645 - disadvantaged.  Rent control requires people making contributions that
081646 - are highly valued to live farther away, and thus waste time commuting,
081647 - because people making less valued contributions are subsidized in
081648 - occupying local property that permits efficient allocation of time.
081649 -
081650 - Macro analysis does not overlook that any given case deviates from the
081651 - general rule.  No solution in a complex environment of 300M people is
081652 - perfect.  A free society banks on a free market to balance differences
081653 - in desire, talent, industry and luck, and strives to reduce intrusion
081654 - of legal mandates, because blunt instruments harm the aims they seek
081655 - to achieve, i.e., access to goods and services, and incentives for
081656 - work and innovation in producing more goods and services to reduce
081657 - prices.  This is not to say that business people are "well motivated."
081658 - The aim of policy must be to improve the community despite motives of
081659 - individuals.  Emphasis must therefore be on conduct, because motives
081660 - are organic, occurring along a continuum, and are mixed, reflecting
081661 - the diversity of society and living organisms, in particular human
081662 - intelligence, set out in POIMS. ref OF 1 0561
081663 -
081664 - Plaintiff's counsel asked prospective jurors again and again during
081665 - voir dire whether the law is "fair"?
081666 -
081667 - That is irrelevant.
081668 -
081669 - First, whether fair or not, the law must be enforced in order to
081670 - provide an objective standard that can be relied upon in conducting
081671 - daily life.  Second, what seems fair today, will be "unfair" tomorrow
081672 - for a different set of circumstances, with the result that "fairness"
081673 - can never be achieved, in the same way that a "decent" standard of
081674 - living is a constantly moving target.  Thus, "fairness" obviates the
081675 - need for objective standards of conduct, and so cannot be the basis of
081676 - judgement.  The requirement for equality of treatment under law, is a
081677 - useful application of "fairness."  This, however, did not seem to be
081678 - the application in questions put to jurors today.
081679 -
081680 -
081681 -
081682 -  ..
081683 - Criminal Law Reduces Risks that Lead to Injury
081684 -
081685 - Another troubling concern in this case is plaintiff's request for the
081686 - jury to look beyond conduct to assess the defendant's motive.
081687 -
081688 - The Judge rightly pointed out today that criminal law has many such
081689 - requirements, in distinguishing intentional from accidental or
081690 - negligent conduct that causes harm, e.g., manslaughter and murder.
081691 -
081692 - Maintaining a safe community, and exercising retribution, may in
081693 - combination raise the bar sufficient to require subjective evaluation
081694 - of intent, despite the high risk of error.  This risk redounds to
081695 - those called to account for conduct that causes injury, and so helps
081696 - restrain risky conduct, by saying to all of us....
081697 -
081698 -      "Be extra careful in conduct that may cause injury, because you
081699 -      may get ensnarled in the murky world of people playing god to
081700 -      assess your intent."
081701 -
081702 - Thus, in the criminal setting the indefinite risk of motive being
081703 - incorrectly assessed performs a community service, as a risk
081704 - management device.
081705 -
081706 -
081707 -  ..
081708 - Civil Law Promotes Risk Taking to Lift Civilization by Innovation
081709 -
081710 - Judging intent to restrain conduct that causes injury, however, does
081711 - not work well for civil actions where law intends to promote commerce
081712 - and risk taking in order to raise the standard of living for all, and
081713 - provide for a strong defense against those who would threaten that
081714 - common bond.  People need to be able to quantify risks against
081715 - prospective returns in order to take action that helps everyone by
081716 - adding to the store of goods and services that reduces prices for
081717 - everyone.  Making "intent" a risk, beyond compliance with procedure,
081718 - which can be established by the record, breaches the covenant between
081719 - government and citizen that says...
081720 -
081721 -
081722 -       "Work hard and play by the rules, and you will be rewarded."
081723 -
081724 - ..
081725 - Welch v. State of California, 139 CArd 586, may be an example.
081726 -
081727 - There, the judge found a material misrepresentation in project bid
081728 - plans, but held that the State was not liable for additional work and
081729 - consequential damages in the amount of $10M, because the contractor
081730 - had not relied on the mistake, despite the fact that the incorrect
081731 - information in the bid plans was entered in the contractor's estimate
081732 - calculations in the same manner used by other bidders, and further
081733 - that expert testimony showed the original bid was reasonable.  The
081734 - court ignored express language in the bid documents that submission of
081735 - a bid is conclusive evidence that the contractor investigated the
081736 - site, the plans and the specifications and was satisfied with
081737 - conditions to be encountered.  The judge ruled, similar to what seems
081738 - to be asked in this case, that regardless of evidence, plaintiff's
081739 - state of mind four (4) years earlier, based on testimony at trial,
081740 - showed there was no reliance on an actionable misrepresentation that
081741 - more than doubled the price of the work, and that it was only a
081742 - coincidence that the bid price was consistent with the error in the
081743 - project plans.
081744 -
081745 - Rulings of this character, unfortunately, leave open issues of motive
081746 - on many levels, and so public policy should strive to avoid, or at the
081747 - very least, de-emphasize state-of-mind "intent" issues, and instead
081748 - rely on the record where possible.
081749 -
081750 - The present case appears at the onset, based on counsel's questioning,
081751 - to involve a similar Delphic conclusion that boils down, not to what
081752 - the evidence shows, but something like...
081753 -
081754 -
081755 -      "Well, I just really feel, I mean it just seems to me..."
081756 -
081757 - ..
081758 - For example, plaintiff seems to be calling for jurors to
081759 - distinguish "dominant" intent, while the defendant asks the jury to
081760 - decide "intent" based on whether there was compliance with the rules
081761 - to occupy the unit for 12 months.
081762 -
081763 - What if both are true?
081764 -
081765 - A jury can find there was compliance with the rules, and yet, also,
081766 - find, using "Baker Street" reasoning (see Campbell reviewed on 900303,
081767 - ref SDS 1 5443), that there was intent to raise the rent, because that
081768 - is always an intent of anyone selling anything.  Plaintiff seems to be
081769 - asking for a state of mind finding regardless of defendant having
081770 - followed the rules.
081771 -
081772 - Finding for the plaintiff would in that case present an indefinite
081773 - risk that obviates the purpose of law.  Shouldn't people be okay by
081774 - following the rules, or is there an additional unquantifiable risk
081775 - that some jury may some day say, "Yeah, you followed the rules, but
081776 - you are still guilty of having politically incorrect intent?"  The
081777 - risk is unquantifiable because, like the contractor case, ref SDS 0
081778 - 4900, there is no way to prospectively establish compliance.  This
081779 - restrains commerce, innovation and risk taking, which harms everyone.
081780 - ref SDS 0 5538
081781 -
081782 -
081783 -
081784 -  ..
081785 - Great Nations Pay Dearly to Sustain Their Values
081786 - Like the Law, First Principles Grind Slowly, But Cannot Be Escaped
081787 -
081788 - Additionally, the present case seems to be a very small dispute that
081789 - is requiring a relatively huge expense including the time of a
081790 - talented judge, infrastructure, two excellent counsel with attendant
081791 - support costs, plus the cost of a jury that is likely suffering $10K+
081792 - per day in lost production, making total outlay of $20K to $30K per
081793 - day.  For a 2 - 3 week trial, and post-trial expense, the cost could
081794 - easily approach $150K to solve a dispute that only requires $3K - $5K
081795 - to help the plaintiff relocate in a satisfactory manner, so that both
081796 - parties can move on to their real agendas in life.
081797 -
081798 - We are left at this stage to guess that damages will include a penalty
081799 - of some kind, to restrain politically incorrect motives, and thereby
081800 - rise to the threshold that qualifies for trial in Superior Court.
081801 -
081802 - In one sense, it is a tribute to, and perhaps the mark of, a great
081803 - nation willing and able to sacrifice so great a treasure in helping
081804 - two people resolve relatively small differences that inevitably arise
081805 - in striving to enjoy the blessings of freedom preserved by the blood
081806 - of our men in battle.  So, while, yes, we all have a duty to soldier
081807 - on in this particular case, there is a larger duty to seek solutions
081808 - commensurate with the magnitude of problems.
081809 -
081810 - How long can profligacy endure, where the case at bar aims to restrain
081811 - activity that pays the bills, merely because one, undoubtedly good,
081812 - citizen is inconvenienced by an untimely relocation?  Americans are a
081813 - people who move often over a lifetime.  The issue is not whether
081814 - someone should move, but only when.  This is addressed by the parties
081815 - in a contract that expires periodically, permitting mutual
081816 - consideration for change. A tenant is free to move at will, subject
081817 - to terms of the contract.  While we have yet to hear evidence, what
081818 - seems to be at issue here is a decision by the landlord not to renew a
081819 - rental agreement, and the tenant claims entitlement to continued
081820 - occupancy, despite lack of agreement.  Where is the balancing right
081821 - for the landlord that is claimed by the tenant to move at will?
081822 -
081823 - During voir dire the Court Clerk, who has a personal computer
081824 - connected to the Internet on the desk next to the Judge's bench, was
081825 - kind enough to report that today the stock market suffered the highest
081826 - one day loss in history, perhaps serving notice that first principles
081827 - cannot be ignored without eventual consequences.
081828 -
081829 -
081830 -  ..
081831 - Assignment as Alternate Juror
081832 -
081833 - I was later selected as alternate juror #1, and so have to return on
081834 - Tuesday, 000418 0900.
081835 -
081836 - The Judge said I could use my computer to take notes, and he will try
081837 - to seat me in row 1 seat 1 or row 2 seat 8, so I am near an electrical
081838 - outlet for the computer.   While leaving the court for a lunch break,
081839 - I thanked the Judge for consideration in permitting use of SDS, and
081840 - mentioned Justice Mosk's review of SDS on 911130 finding strong
081841 - support for legal practice. ref SDS 2 P15J
081842 -
081843 - We discussed briefly the project at SRI to create a DKR capability for
081844 - improving general knowledge work, which SDS supports.  Jury duty to
081845 - hear evidence and make judgements is a core aspect of knowledge work,
081846 - as noted earlier by Justice Mosk.
081847 -
081848 -    [On 000418 this worked out partially. ref SDS 23 6216
081849 -
081850 -    [On 001214 submitted letter thanking Judge Douglas for his
081851 -    consideration, and mentioned Doug Engelbart's award for the
081852 -    National Medal of Technology in advancing methods to enhance
081853 -    competency. ref SDS 24 0001
081854 -
081855 -
081856 -
081857 -
081858 -
081859 -
081860 -
081861 -
081862 -
0819 -
Distribution. . . . See "CONTACTS"