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Martinez v. Socoma Companies, Inc.

California Supreme Court
11 Cal. 3d 394, 113 Cal. Rptr. 585, 521 P.2d 841 (1974)

Written by Matt Fyock, JD

Facts

In 1967 Congress instituted Special Impact programs to benefit residents of neighborhoods with large concentrations of low-income persons. An area designated as a Special Impact Area had federal funds made available to it for contracts with local businesses. The Department of Labor designated the East Los Angeles neighborhood as a Special Impact Area. In 1969, Socoma Companies, Inc. (Socoma) and other companies (defendants) entered into contracts with the government to lease property and invest $5 million in renovating and establishing manufacturing facilities and to employ residents of the East Los Angeles neighborhood. Martinez et al. (plaintiffs) were members of a class of residents of the East Los Angeles neighborhood who were qualified for employment under the contracts. They brought suit when Socoma failed to establish manufacturing facilities and hire neighborhood residents. Martinez et al. appealed from the trial court’s judgment that they lacked standing as only incidental beneficiaries of the contracts.

Rule of Law

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Issue

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Holding and Reasoning (Wright, C.J.)

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Dissent (Burke, J.)

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