CAL-VADA AIRCRAFT, INC., et al., Petitioners, v. THE SUPERIOR COURT OF PLACER COUNTY, Respondent; U.S. FIRE INSURANCE COMPANY et al., Real Parties in Interest.
Civ. No. 24764
Third Dist.
Mar. 28, 1986.
435
Borton, Petrini & Conron, Warren C. Wetteroth and Roy J. Gargano for Petitioners.
No appearance for Respondent.
Reid & Axelrod, Peter Axelrod, Neil D. Reid, Bronson, Bronson & McKinnon, Paul H. Cyril, Elliot L. Bien and Richard R. Dale for Real Parties in Interest.
OPINION
REGAN, Acting P. J.—In this case we decide whether a partial adjudication of issues pursuant to
FACTS
On May 22, 1982, William B. Layton, Jr., was killed in a crash of a seaplane chartered from Cal-Vada for the purpose of taking aerial photographs. At the time of the fatal crash, the pilot of the plane was Gregory Gojkovich, an employee of Cal-Vada, and who also was killed in the accident. The heirs of decedent Layton filed an action for wrongful death against Cal-Vada in the Superior Court of Placer County.
At the time of the accident, Cal-Vada was insured under a liability policy issued by U.S. Fire Insurance Company, Aviation Office of America, Inc., (U.S. Fire). Cal-Vada purchased the policy through an insurance broker, Bussey, Cantor & Triplett Insurance Brokers, Inc. (Bussey). Subsequently, U.S. Fire denied coverage for the fatal accident in which decedent Layton was killed, maintaining the insurance policy it issued to Cal-Vada did not provide coverage for the fatal accident because Gojkovich was not a named pilot in the policy. The heirs of Layton eventually entered into a stipulated judgment in the wrongful death action for $1.5 million, in exchange for a covenant not to execute, running in favor of Cal-Vada and an assignment of Cal-Vada‘s rights against the insurance companies.
In its cross-complaint, Cal-Vada alleged Gojkovich was covered by the policy by virtue of actions taken by Bussey according to past practices; that Bussey was the actual or ostensible agent of U.S. Fire; and that U.S. Fire was estopped from denying coverage by virtue of its own past actions. The cross-complaint alleged the policy was ambiguous as to the coverage provided to Cal-Vada and sought reformation.
In June 1983 Cal-Vada brought a separate action in the Alameda County Superior Court against the insurance agencies, real parties in interest in this case. By stipulation of the parties the Alameda Superior Court action was abated pending disposition of the declaratory relief action in Placer County.
On February 2, 1984, U.S. Fire, as plaintiff in the original action, moved the Placer County Superior Court for a summary judgment. The trial court ruled the policy was not ambiguous and the insurance company was entitled to an adjudication that Gojkovich was not included within the language of the coverage. The court also found that under the written agency agreement Bussey did not have actual authority to bind U.S. Fire to such coverage without its approval. However, the trial court found there was a factual dispute on the question of ostensible authority which could not be resolved by summary judgment. The trial court concluded the question of U.S. Fire‘s ostensible agency relationship with Bussey must be tried on its merits.2
On January 8, 1985, prior to the commencement of trial on the issues not disposed of by the court‘s order on U.S. Fire‘s motion for summary judgment, Cal-Vada filed a voluntary dismissal pursuant to
Cal-Vada then moved for reconsideration and the court heard argument on the question of the dismissal. The court concluded Cal-Vada could not voluntarily dismiss Bussey from the action because its ruling on U.S. Fire‘s motion for summary judgment constituted a commencement of the trial under
U.S. Fire subsequently moved to dismiss the action against it on the ground that the dismissal with prejudice of the alleged ostensible agent precluded recovery against the principal. The court set the motion for hearing on February 13, 1985, with a jury trial ordered for March 5, 1985. Cal-Vada sought an alternative writ of prohibition or mandate to stay any further action or proceeding pending our review. On March 6, 1985, we issued that alternative writ, and set the matter for calendar in this court.
DISCUSSION
We consider here whether a hearing on a motion for summary judgment followed by an order of summary adjudication on some, but not all, of the issues raised in a complaint is a “trial,” barring a plaintiff from filing a voluntary dismissal under
As this is a right prescribed by statute, in order to curtail the plaintiff‘s privilege of dismissing his action voluntarily “the defendant must clearly and specifically bring himself within the terms of the statute; i.e., request affirmative relief, or prove that plaintiff has made an opening statement, or that a witness has been sworn or evidence introduced.” (Gherman v. Colburn (1971) 18 Cal.App.3d 1046, 1049 [94 Cal.Rptr. 424].) The question
In this case, the trial court determined trial had commenced because there had been an order of summary adjudication on some, though not all, of the issues raised by the cross-complaint. In reconsidering its decision setting aside the dismissal, the court stated: “The question to me is whether or not by having that summary adjudication of issues the case proceeded to the equivalent of a trial, to the point where the dismissal provisions of 581, sub 1, would not apply. . . . [¶] I think given the posture of the case in terms of the date, the fact it was set for trial on motion for summary adjudication, I will for that reason recognizing that there may be a problem with jurisdiction, I don‘t think so, given that and for those reasons I will stand by the previous order setting that aside, and order that that dismissal not be entered.”
Cal-Vada then rejected the trial court‘s invitation to fully participate in the trial without waiving objection to the trial court‘s ruling, but stated it would offer no evidence against the brokers and seek no relief against them. The court thereupon found Cal-Vada had abandoned the action as to the brokers and entered a dismissal with prejudice pursuant to
We must construe the pertinent provision of
However, in Wells v. Marina City Properties, Inc. (1981) 29 Cal.3d 781, 786-787 [176 Cal.Rptr. 104, 632 P.2d 217], the California Supreme Court has held this language does not create an exclusive test which somehow preserves the right of voluntary dismissal until the occurrence of one of
Prior to 1947,
As a result of an abusive practice by plaintiffs voluntarily dismissing actions after the case had been called for trial or, even more seriously, after the parties and the court had been engaged substantially in trial on the merits,
While the Wells court framed the issue as being when a trial of issues of law commenced (id., at pp. 787-788), the court did not resolve the question except in the context of a general demurrer having been sustained with leave to amend where plaintiff does not amend within the time authorized by the court. (Id., at p. 789.) Thus, Wells does not adequately define for us whether trial has commenced in summary adjudication proceedings. We note, however, the Supreme Court stated in dicta that the “right of voluntary dismissal, . . . would . . . not be impaired prior to a decision sustaining the demurrer.” (Id., at pp. 789-790, original italics.) The statement lends support to the notion our Supreme Court continues to hold that it is the hearing and determination of a question of law which constitutes a trial of the question of law for the purposes of the voluntary dismissal statute.
Relying on Wells, the Supreme Court ruled in Christensen v. Dewor Developments (1983) 33 Cal.3d 778 [191 Cal.Rptr. 8, 661 P.2d 1088], that even after a demurrer has been sustained with leave to amend, followed by an amended complaint and a new demurrer, plaintiff is entitled to voluntarily dismiss before any decision is made on the new demurrer. (Id., at p. 785.) Obviously, where leave to amend is granted, the case is not brought to the point of final determination until the time to amend has expired. We think Christensen clarifies the dilemma posed by the Wells dissent, namely, whether the first ruling on a demurrer (with leave to amend) constitutes the commencement of the trial of law barring dismissal. It is now clear it is the sustaining of a demurrer that brings the case to final disposition which constitutes the commencement of the trial of law. This would include those demurrers sustained with leave where plaintiff fails to amend, but not until the time to amend has expired. (Wells, supra, 29 Cal.3d at pp. 789-790.)
We must next determine if a partial summary adjudication is the kind of trial of a question of law which would bar voluntary dismissal. The critical language in Goldtree focusing on this question (in the context of a demurrer) states: “. . . there may be such a trial on a general demurrer to the complaint as will effectively dispose of the case where the plaintiff has properly alleged all the facts which constitute his cause of action.” (Goldtree, supra, 135 Cal. at pp. 672-673, italics added; see Wells, supra, 29 Cal.3d at p. 785.) The Supreme Court has noted “[i]t should . . . be clear that an action is not subject to dismissal where issues of law leading to its final
In Miller v. Marina Mercy Hospital (1984) 157 Cal.App.3d 765 [204 Cal.Rptr. 62], the Second District Court of Appeal considered whether a plaintiff‘s right to dismiss pursuant to
The Miller court noted the question of when trial begins for purposes of voluntary dismissal without prejudice under
The Miller court also noted the decision in Datner v. Mann Theatres Corp. (1983) 145 Cal.App.3d 768, 770 [193 Cal.Rptr. 676] which upheld a plaintiff‘s voluntary dismissal entered after a demurrer was filed, but before a ruling was made by the trial court. The Datner case was relevant to the question before the Miller court because the Miller defendants (who obtained their summary judgment after the plaintiff‘s voluntary dismissal) maintained the deemed admissions taken against the plaintiffs as a result of the plaintiff‘s default in answering defendants’ requests for admissions re-
A partial summary adjudication under
In Lemaire, Faunce & Katznelson v. Cox (1985) 171 Cal.App.3d 297 [217 Cal.Rptr. 281] the Court of Appeal relied on this very point in holding that a partial adjudication of issues under
It is true the policy considerations in finding that a trial does not commence with a partial adjudication of issues for the purpose of the mandatory dismissal statute (
Under
Permitting a plaintiff to dismiss after a partial adjudication of issues does not run afoul of the above considerations. As to those issues remaining for trial, the defendant, once dismissed, need not face the issues more than once at trial, and perhaps not at all. The plaintiff is given the opportunity to save all the parties from the expense and time of additional judicial proceedings. As to the issues which have been summarily adjudicated adversely to the plaintiff as “without controversy,” the defendant may be able to defend in any future action on the basis of collateral estoppel or res judicata, although we do not determine that question here. ”
Nonetheless, a plaintiff may have good cause to dismiss an action or a party after a summary adjudication of issues, and if other limitations permit, he should be free to pursue his allegations of injury anew on those issues remaining after the summary adjudication of issues. Our views here are consistent with the general proposition that trial would not have commenced with the summary adjudication so as to bar plaintiff from voluntarily dismissing the action or a party to the action.
Another line of analysis confirms our conclusion that trial does not commence with the summary adjudication.
Thus, as the summary adjudication statute contemplates, such proceedings do not constitute the “trial” which brings the action to the stage where final disposition can be made; they are not a trial of a question of law barring a plaintiff from voluntarily dismissing his action or a party to the action under In spite of the fact that U.S. Fire moved for summary judgment and not for “summary adjudication of issues, either by itself or as an alternative to summary judgment” ( As In its return, real party Bussey raises for the first time an issue that Cal-Vada stipulated it would proceed against Bussey on its cross-complaint to its final resolution. Bussey argues that, assuming trial had not commenced, Cal-Vada‘s dismissal of Bussey without prejudice under The stipulation was one reached to abate the action in Alameda County Superior Court. However, Bussey mischaracterizes the stipulation by asserting it is an agreement by Cal-Vada to proceed against Bussey on the merits to final judgment in the Placer County action. The stipulation says no such thing. It states: “The undersigned parties hereby stipulate that the court may enter its order abating the above entitled action pending final resolution of the complaint for declaratory relief entitled U.S. Fire Insurance Company v. Cal-Vada Aircraft, Inc. et al, pending in the Superior Court of the State of California for the County of Placer, case number 65279, or a period of 2 and 1/2 years from the date of filing of the complaint in this action, whichever is less.” The stipulation merely sets forth that the abatement of the Alameda County action may take effect “pending final resolution of the complaint for declaratory relief. . . .” Such final resolution could entail any number of possible actions and outcomes; the stipulation does not compel Cal-Vada to pursue its cross-complaint against cross-defendant Bussey to final judgment. DISPOSITION Let a peremptory writ of mandate issue commanding the superior court to vacate both its order setting aside the voluntary dismissal of cross-defendant Bussey without prejudice and its order dismissing Bussey with prejudice. SIMS, J., Concurring.—I do not read the thoughtful majority opinion as reaching the question whether the order of summary adjudication entered in this action would be given effect in any subsequent action filed by plaintiff. With that understanding, I concur in the opinion.
