State Ex Rel. State Board of Public Affairs v. Principal Funding Corp.

The majority opinion notes that Principal Funding Corporation’s (hereinafter referred to as “Plaintiff”) claim against Petitioners (hereinafter referred to as “State”) is a claim for back rentals arising out of a contractual rental arrangement between the parties authorized by legislative enactment. There are several pertinent distinctions between an action to enforce such a contractual arrangement and an action against a state which might be barred by the Doctrine of Sovereign Immunity.

As stated by Chief Justice Gibson of the Supreme Court of the State of California in the case of Souza &…