Opinion
This appeal arises out of a dispute about developer fees between plaintiff and cross-defendant N.T. Hill (Hill) and defendant and cross-complainant City of Clovis (Clovis). In the trial court, Hill claimed that Clovis owed Hill money and had waived its right to fees related to certain road improvements. The trial court granted summary adjudication (Code Civ. Proc., § 437c) in favor of Clovis. 1 Thereafter, Hill, Clovis and cross-defendant Developers Insurance Company (Developers), the surety on Hill’s performance bond, stiрulated to the judgment from which Hill and Developers now appeal. We will dismiss the appeal because the stipulated “judgment” did not dispose of all the causes of action at issue between the parties under the complaint and cross-complaint and therefore was not a final, appealable judgment.
*437 Statement of Case and Facts
On February 5, 1990, Clovis entered into a “Subdivision Agreement” for tract No. 4154 with subdivider William R. Tatham, Jr. In relevant part, this agreement provided, in paragraph 6(d): “Subdivider shall construct the center 32 feet of permanent paving plus median island with landscaping and irrigation on Temperance Avenue from the north limits of this tract to Shaw Avenue prior to final acceptance of this tract or prior to final map approval of any other phase of tentative tract 3980, whichever comes first. Construction plans for the work shall be submitted prior to or concurrently with the final map submittal for the next phase of this tract but not later than March 1, 1990. The center travel lane fee for the next phasе will be credited based on the actual construction cost of the center 24 feet plus median island, landscaping and irrigation.”
Soon thereafter Tatham assigned his interest in the February 1990 Subdivision Agreement to Hill.
In October 1990, Clovis and Hill entered into a “Subdivision Agreement” for tract No. 4176. Paragraph 6(d)(12) of this agreement referred to a deposit of $55,000 by Hill as a right-of-way acquisition fee. It is undisputed that the subject right-of-way pertained to the land on which the central travel lane improvements, referred to in the February 1990 agreement, would be constructed. The October 1990 agreement also related in paragraph (6)(e): “The right-of-way acquisition fee includes costs for the acquisition of land plus any legal and court costs. This fee is based on an estimate of land values in the area and any costs incurred by the City in the process of acquiring said land. Once actual costs have been determined, the fee shall be adjusted with the City reimbursing any under credit and the Subdivider [Hill] paying any' over credit to the City prior to final tract aсceptance.”
Under the terms of the October 1990 Subdivision Agreement, Clovis also gave Hill a $57,141.88 credit in fees for constructing the central travel lane improvements. Clovis and Hill further agreed, in paragraph 6(f): “The center travel lane fee adjustment is based upon estimated cost. Upon construction and prior to final tract improvement acceptance, the Subdivider shall submit a financial statement signed by himself and the contractor of the work, stating the actual cost. The credit will then be adjustеd with the City reimbursing any under credit and the Subdivider paying any over credit to the City prior to final tract acceptance.”
It is without controversy that Hill developed both tract No. 4154 and tract No. 4176, known respectively as Silverton I and Silverton H, but did not *438 construct the center travel lane improvements as anticipated by the two Subdivision Agreements.
In a second amended complaint, Hill sued for declaratory relief with respect to the status of the $55,000 deposit (first cause of action) and the $57,141.38 credit or fee adjustment (second cause of action). Hill additionally alleged a cause of action for breach of contract (third cause of action), claiming that Clovis had not performed its agreement to reimburse Hill for unrelated public road improvements Hill had constructed, and a cause of action (fourth cause of action) for a portion of Hill’s costs expended in building a city park in Silverton II. In its fifth and final cause of action, Hill contended it was entitled to statutory attorney fees.
Clovis cross-complained against Hill and Developers. As a first cause of action, Clovis alleged Hill breached the February 1990 Subdivision Agreement by failing to construct the center travel lane improvements. Clovis claimed damages of $32,257.16, which it said it had paid to a third party to build the improvements; Clovis alleged that “[i]f Hill obtains the relief requested in its complaint herein, then this amount is increased to $136,490.50.” In a second cause of action, Clovis charged that Hill had breached the October 1990 Subdivision Agreement by failing to (1) cоnstruct the center travel lane improvements or to pay the city for the $57,141.88 it had credited Hill for the construction; and (2) pay the additional costs for the right-of-way acquisition. In a third cause of action, Clovis alleged Hill’s performance under the terms of both Subdivision Agreements had been negligently done. As its damages, Clovis asked for the $32,257.16 it paid for construction costs, the $57,141.88 issued in credits to Hill, and whatever additional costs it could prove it spent in acquiring the right-of-way. In its fourth and final cause of action, Clovis sued оn Hill’s performance bond.
Shortly before trial was set to commence, Hill and Clovis filed competing motions under section 437c. Hill sought summary adjudication of various issues raised by its complaint. Clovis sought summary judgment in its favor on Hill’s complaint and summary adjudication in its favor on the second and fourth causes of action of the city’s cross-complaint. Clovis’s motion made no mention of the first and third causes of action of its cross-complaint.
In its moving papers filed in support of its section 437c motion, Hill contended that Clovis had belatedly acquired a right-of-way to the land on which the center travel lane improvements were to be located, thereby *439 excusing Hill from any obligation to construct them. The developer relied on the language of Government Code section 66462.5. 2
Clovis took the opposing position that Hill’s reliance on the Government Code provision was misplaced. According to the city, it did not condition the tentative tract map on construction of the center travel lane nor did it delay or refuse final map approval for tracts Nos. 4154 and 4176. It further maintained that it gave Hill credit for the unrelated public road improvements identified in Hill’s third cause of action but applied the credit to offset the balance Clovis believed Hill owed the city for the right-of-way acquisition and for the $57,141.88 credit the city gave Hill to build the center travel lane improvements.
After a hearing on the parties’ section 437c motions, the trial court granted summary adjudication in favor of Clovis on Hill’s first, second and fifth causes of action and otherwise denied both motions. The court concluded that (1) Government Code section 66462.5 did not apply to the facts of the case; (2) Clovis was entitled to keep the $55,000 deposit; (3) Hill must reimburse Clovis for the $57,141.88 credit issued by the city; and (4) Hill was not entitled to statutory legal fees. The court found that triable issues of fact existed pertaining to Hill’s third and fourth causes of action and Clovis’s second and fourth causes of action.
Thereafter, the parties filed an “Entry of Judgment on Stipulated Facts,” along with a “Separate Judgment on Stipulated Facts,” prepared for the trial court’s signature. According to the “Separate Judgment,” Hill, Clovis and Developers “stipulated to facts that judgment be entered.” The stipulated facts included:
“Given the law and motion Court’s interpretation on summary adjudication, which will be binding at trial, Hill recognizes that it will not prevail on *440 the City’s claim for the right-of-acquisition costs.[ 3 ] That amount is $104,135.60. Hill therefore stipulates to judgment on the City’s cross-complaint. On the City’s cross-complaint, Hill will have judgment entered against it on the second сause of action in the amount of $106,277.48 ($104,135.60 - $55,000 + $57,141.88), plus prejudgment interest, of which Developers is jointly liable under the fourth cause of action in the amount of $57,141.88 plus prejudgment interest. Developers will have judgment entered against it on the fourth cause of action in the amount of $57,141.88 plus prejudgment interest.
“On May 25, 1993, Hill and the City entered into an agreement (the ‘Reimbursable Agreement’) which required Hill to construct public road improvements across a park owned by the City at Peach and Alluvial Avenues. . . . Hill performed all work required by the Reimbursable Agreement and recorded a Notice of Completion on June 7, 1993. The parties now agree that the amount Hill is eligible for under the Reimbursable Agreement is $102,915.56. On the third cause of action of Hill’s second amended complaint, the City will have judgment entered against it in the amount of $102,915.56, plus prejudgment interest.
“Pursuant to the Silverton II Agreement, Hill constructed a City park (‘Silverton II Park’) as part of the development of Silverton II. Since the Park benefited property in addition to Silverton II, Clovis agreed tо collect contributions from the developers of the other benefiting subdivisions and reimburse Hill from the deposit for eligible costs exceeding Hill’s proportionate share of the deposit. Clovis has received such funds from the other benefiting developers. Since the summary adjudication motion, Hill has presented adequate documentation of its costs to Clovis. Consequently, the amount of reimbursement under the Silverton II Agreement for which Hill is eligible is no longer in dispute and Hill is eligible for reimbursement in the amount of $30,000. Clоvis delivered a check to Hill in the amount of $26,638.08. On the fourth cause of action of Hill’s second amended complaint, the City will have judgment entered against it in the amount of $3,361.92, plus prejudgment interest.
“Regarding any reimbursement to Hill for the acquisition costs of the right-of-way, reimbursement determinations would be made according to the City’s Major Street Development Ordinance.”
This “Separate Judgment” also provided that:
“1. Hill shall have judgment entered against City for $106,277.48 ($102,915.56 + $3,361.92), plus prejudgment interest.
*441 “2. City shall have judgment entered against Hill for $106,277.48, plus prejudgment interest, of which Developеrs is jointly liable for $57,141.88, and City will have judgment against Developers for $57,141.88, plus prejudgment interest.
“3. The parties shall offset their judgments.
“4. Costs, including attorneys fees, if any, as to any party pursuant to a timely filed, untaxed memo of costs and motion for Atty fees.”
The trial court entered the “Separate Judgment” on April 8, 1996. Hill and Developers thereafter jointly filed a notice of appeal from this judgment.
Discussion
Soon after we received appellants’ opening brief, we notified the parties we were considering dismissing the appeal because it was tаken from a nonappealable interlocutory order. We explained: “the judgment from which the appeal has been taken appears to be on less than all the causes of action between the parties and therefore fails to meet the requirements of the one final judgment rule.” We requested written comments.
Appellants responded that the parties had intended the judgment to be a final disposition of all the causes of action under the parties’ pleadings. They furnished us with а copy of a “Stipulation and Order Correcting Judgment and Amending Judgment,” executed by the parties and by the trial court. This stipulation in part provided:
“4. The parties intended that the Entry of Judgment on Stipulated Facts and the Separate Judgment on Stipulated Facts completely dispose of all causes of action in both the complaint and cross-complaint.
“5. The Separate Judgment on Stipulated Facts inadvertently did not specifically incorporate the causes of action adjudicated in the court’s order on March 21, 1996 regarding the summary adjudicаtion, and did not identify the disposition of the City of Clovis’ first cause of action (<breach of contract), and its third cause of action (negligence) in its cross-complaint.” (Emphasis added.)
By their “Stipulation,” the parties agreed the trial court could enter an order correcting the judgment to show the prevailing party on each cause of action of Hill’s second amended complaint and on the second and fourth causes of action of Clovis’s cross-complaint. The parties further stipulated *442 that the first аnd third causes of action in the city’s cross-complaint may be “[d]ismissed without prejudice and the statute of limitations is tolled until 30 days after remittitur to the Superior Court.” The trial court executed the order approving the stipulations and correcting the judgment on September 16, 1996.
Because the stipulation and order failed to satisfy us that the judgment was a final resolution of all the issues pending between the parties, we informed the parties in a second letter that we were still troubled about the jurisdictional issue аnd continued to believe the appeal should be dismissed. We explained: “there are still two pending causes of action in the cross-complaint which have been dismissed without prejudice and that the statute of limitations has been tolled until 30 days after this court issues a remittitur. Thus, there has not been a final adjudication of all causes of action and issues between the parties. To accept an appeal from the document submitted by the parties would violate the one final judgment rule.”
We invited the partiеs to again comment in writing. Alternatively, we suggested the appeal be dismissed or the parties voluntarily dismiss with prejudice all unresolved causes of action.
Appellants replied by insisting the judgment was appealable. They took the position (1) the city had a statutory right under section 581, subdivisions (c) and (e), 4 to dismiss causes of action without prejudice, (2) the dismissal of claims without prejudice in order to seek appellate review was an accepted routine in appellate practicе; and (3) dismissal would leave them without a remedy because the parties had resolved all issues raised in the action.
We remain convinced we have no jurisdiction to entertain this appeal. An appeal cannot be taken from a judgment which fails to complete the disposition of all the causes of action pending between the parties.
(Morehart
v.
County of Santa Barbara
(1994)
In an earlier case,
Tenhet
v.
Boswell
(1976)
Section 904.1, subdivision (a), codifies the one final judgment rule, for it authorizes an appeal “[f]rom a judgment, except... an interlocutory judgment.” There are sound reasons for the rule.
(Morehart
v.
County of Santa Barbara, supra, 1
Cal.4th at p. 741, fn. 9.) “As explained in
Kinoshita
v.
Horio
[(1986)]
In three recent decisions, divisions of the First, Second, and Fourth District Courts of Appeal have relied upon
Morehart
to condemn as an “artifice” stipulated judgments which requested court orders dismissing without prejudice one or more pled but unadjudicated causes of action.
{Four
*444
Point Entertainment, Inc.
v.
New World Entertainment, Ltd.
(1997)
The three recent Court of Appeal opinions are well reasoned and correct in theory and outcome. We elect to follow them. We agree that “[t]he one final judgment rule does not allow contingent causes of action to exist in a kind of appellatе netherworld.”
(Don Jose’s Restaurant, Inc.
v.
Truck Ins. Exchange, supra,
The facts disclosed by the record before us are identical in substance and effect to the critical facts in
Don Jose’s Restaurant, Inc., Jackson,
and
Four Point Entertainment, Inc.
The trial court here has not finally disposed of two of the city’s causes of action against Hill and Developers notwithstanding the dismissal of those claims under the amended judgment. The stipulation and judgment here “virtually exudes an intention to retain [these] remaining causes of action for trial”
(Don Jose’s Restaurant, Inc.
v.
Truck Ins. Exchange, supra,
Appellants have not persuaded us to hear the case in its present posture. The fact that Clovis may have a statutory right to dismiss a cause of action without рrejudice is not determinative of our appellate jurisdiction. The dismissal here was not the result of a unilateral act by the city. “[T]he court, not the parties, dismissed the unresolved claims based upon a stipulation that is unenforceable because it purports to vest jurisdiction in an appellate court where none exists.”
(Four Point Entertainment, Inc.
v.
New World Entertainment, Ltd., supra,
As for appellants’ argument that other appeals courts have reviewed similar stipulated judgments without being bothered by any appeal-ability issue, each of the decisions cited by
appellants—Dore
v.
County of Ventura
(1994)
Finally, the dismissal of this appeal will not leave appellants without recourse. Because the stipulated judgment does not decide all issue between the parties, it is not a final judgment.
(Morehart
v.
County of Santa Barbara, supra,
Finally, appellants have not asked this court to consider their briefs as a petition for writ of mandate. (Cf.
Jackson
v.
Wells Fargo Bank, supra,
Disposition
The trial court shall vacate the judgment and the stipulation on which it is based.
(Four Point Entertainment, Inc.
v.
New World Entertainment, Ltd., supra,
Thaxter, J., and Wiseman, J., concurred.
Notes
All statutory references are to the Code of Civil Procedure unless otherwise indicated.
Government Code section 66462.5 рrovides in pertinent part: “A city . . . shall not postpone or refuse approval of a final map because the subdivider has failed to meet a tentative map condition which requires the subdivider to construct or install offsite improvements on land in which neither the subdivider nor the local agency has sufficient title or interest, including an easement or license, at the time the tentative or final map is filed with the local agency, to permit the improvements to be made. In such cases, the city . . . shall, within 120 days of the filing of the final map, pursuant to Section 66457, acquire by negotiation or commence proceedings ... to acquire an interest in the land which will permit the improvements to be made, including proceedings for immediate possession of the property . ... In the event a city . . . fails to meet the 120-day time limitation, the condition for construction of offsite improvements shall be conclusively deemed to be waived. Prior to approval of the final map the city . . . may require the subdivider to enter into an agreement to complete the improvements pursuant to Section 66462 at such time as the city ... acquires an interest in the land which will permit the improvements to be made. “Nothing in this section precludes a city . . . from requiring a subdivider to pay the cost of acquiring offsite real property interests required in connection with a subdivision.”
In a footnote, the parties noted: “Hill and Developers disagree with the Court’s interpretation and intends [¿7c] to appeal the issue after judgment.”
In pertinent pаrt, section 581 provides: “(c) A plaintiff may dismiss his or her complaint, or any cause of action asserted in it, in its entirety, or as to any defendant or defendants, with or without prejudice prior to the actual commencement of trial. ". . . . . . . . . . . . . . . . . . . . . . . . . . . . . “(e) After the actual commencement of trial, the court shall dismiss the complaint, or any causes of action asserted in it, in its entirety or as to any defendants, with prejudice, if the plaintiff requests a dismissal, unless all affected parties to the trial consent to dismissal without prejudice or by order of the court dismissing the same without prejudice on a showing of good cause.”
We take no position on either topic.
