Opinion
I.
INTRODUCTION
The California Supreme Court held, in
Le Francois v. Goel
(2005)
We conclude that the trial court’s inherent authority to сorrect its errors applies even when the trial court was prompted to reconsider its prior ruling *1304 by a motion filed in violation of section 1008. Because that is what occurred in the present case, we affirm the trial court’s order.
II.
FACTS AND PROCEDURAL BACKGROUND
Appellant Aubin Barthold (Aubin) and respondent Catherine Corbin Barthold (Kay) were married in May 1974, and separated in June 2003. 1 Aubin filed a petition for dissolution of the marriage in July 2003. After the separation, Kay remained in the community property family home in Piedmont, while Aubin moved first to San Francisco and then to Seattle. In February 2005, they entered into a marital settlement agreement (MSA), which wаs incorporated into a judgment. The MSA provided that the family home would be sold, and the proceeds distributed between the parties. Because Aubin was anxious to realize the proceeds from the sale as soon as possible, the MSA included provisions giving Kay incentives to cooperate in getting the house sold quickly.
Specifically, the MSA, as originally drafted, provided that Kay would receive certain sums from Aubin’s share of the sale proceeds if (1) Kay signed both the MSA and the listing agreement by March 1, 2005 (the listing bonus); and (2) the parties accepted an offer to purchase the home by May 1, 2005 (the signing bonus). A handwritten addendum to the listing bonus clause provided that the listing bonus would only be payable if “the property is listed in the MLS [multiple listing service] by March 15th, unless that listing is delayed at the suggestion of the broker. In that case, either party may apply to the Court for an Order requiring the listing.” (Original capitalization.) The handwritten addendum was inserted by Kay’s attorney, with Aubin’s consent, just before the MSA was signed by the parties.
Kay moved out of the home by the end of February 2005, and on March 1, 2005, informed Aubin that she had done so. 2 The home was not listed in the MLS (multiple listing service) until after March 15, however. After the home was sold, the parties agreed that Kay was entitled tо the signing bonus, under an extension of the deadline to which Aubin had agreed, but disagreed as to her entitlement to the listing bonus. Kay therefore filed a motion seeking to establish her right to the listing bonus.
Kay’s declaration in support of the motion asserted that “I am entitled by the [MSA] to [the listing] bonus if I signed all of the documents for the *1305 listing by March 1, 2005 and the listing was delayed at the suggestion of the broker. I met both those conditions.” She stated that Aubin had come to California on March 5 to move his possessions out of the house, but had left town on March 12 without completing the task. She averred that “At that point, it was obvious that the house could not be listed by the target date of March 15, and our broker had no choice but to suggest that the listing be delayed.” She explained that at Aubin’s request, she and their sons had moved some of the rest of Aubin’s possessions between March 17 and March 21, and that “[a]fter that the broker decided she had to postpone the listing even further.” Finally, Kay argued that “I did everything I could to get this house sold expeditiously. The delay was entirely the responsibility of [Aubin] and the broker made sensible decisions to postpone the listing in view of [Aubin’s] failure to perform the work he was supposed to do.”
In his opposition to Kay’s motion, Aubin took the position thаt the handwritten addendum to the MSA was intended to require Kay to get court permission for any delay in listing the house, if she wished to recover the listing bonus despite the delay. He noted that no such permission had been obtained either from him or from the court, and also averred that the broker had never suggested to him that the deadline for listing the home be extended, and that neither the broker nor Kay’s attorney had ever contacted him or his attorney about extending it. He also outlined the steps he had taken, on short notice, to remove his belongings from the house during the first two weeks of March. He argued Kay’s evidence that the broker recommended the listing delay was insufficient, but did not produce any evidence that the broker had not actually made such a recommendation. Instead, the principal argument in his memorandum of points and authorities was that the broker’s recommendation was not sufficient to preserve Kay’s right to the listing bonus unless one of the parties requested and obtained court approval for the delay.
In his order filed July 19, 2006, the trial judge rejected Aubin’s position that Kay “was under an obligation to go to court to seek permission to have the listing delayed.” Accordingly, the judge identified as the “reаl question” the issue whether the listing was in fact delayed at the broker’s suggestion. On this question, the judge characterized Kay’s statement in her declaration that “ ‘the broker had no choice but to suggest that the listing be delayed’ ” as constituting “weasel words” that “do not say directly that the broker suggested anything.” Accordingly, since no declaration from the broker had been submitted, and Kay “could not bring herself to swear under oath that the broker suggested the delay,” the court declined to find that the broker did so, and ruled that Kay was not entitled to the listing bonus.
On July 31, 2006, Kay filed a motion for reconsideration under section 1008. In support of the motiоn, Kay filed a declaration explaining that she *1306 had not realized, when she filed her original declaration, that there would be any dispute that the broker had in fact suggested the listing delay. She also supplied a declaration from the broker verifying that the delay was at the broker’s recommendation, because the home was not “ready for showing and sale” by March 15.
In his opposition to Kay’s motion, Aubin argued that Kay had presented no new or different facts, and that to the extent she had presented new evidence, she had provided no satisfactory explanation for her failure to presеnt it with the original motion. Aubin also submitted a declaration reiterating that the broker had never suggested or even mentioned to him that the listing date should be postponed. He also contended that Kay should be sanctioned for filing the motion under section 1008, subdivision (d).
In his order filed September 6, 2006, the trial judge stated at the outset that “[w]hen I ruled on this case in July[,] I completely missed the most important point. At that time the parties were not seriously contesting whether the real estate broker had asked to have the listing delayed. Now that I realize the true situation, [Kay’s] somewhat ‘oblique’ statement in her declaration does make sense.” He went on to say that he had reread Aubin’s opposition to the original motion, and that the thrust of Aubin’s argument at that time was not that the broker had failed to make the recommendation, but that Kay had not sought a court order authorizing the delay.
The remaining body of the trial judge’s order of September 6, 2006, reads as follows: “Although a party who makes a motion under [s]ection 1008 must strictly follow the requirements of that section in bringing the motion, the court has inherent authority to correct a mistaken ruling if this is done before the ruling becomes final. So, if the court clearly made a mistake in interpreting what the pаrties were contending at an earlier hearing, the injustice can be fixed. See
Darling, Hall & Rae
v.
Kritt
[(1999)]
The court concluded by ordering that: “The motion for reconsideration is granted. [Kay] is entitled to the [listing] bonus, [f] Neither party is awarded *1307 attorney fees or sanctions with regard to this matter.” On November 6, 2006, Aubin filed a timely notice of appeal from this order. 3
in.
DISCUSSION
As both parties to this appeal recognize, the controlling California Supreme Court case on the issue of a trial court’s authority to reconsider an order on its own motion is
Le Francois, supra,
Nonetheless, the Supreme Court reversed, because in the case before it, the record reflected that the second judge had not acted on his own motion, but rather, had granted the defendants’ renewed summary judgment motion even though that motion did not comply with the reconsideration statutes.
(Le Francois, supra,
In this case, although the trial court’s reconsideration of its earlier order was not the result of “an unprovoked flash of understanding” on the part of the judge, it clearly was intended to correct an order that the court had come to believe was erroneous. While ordinarily that should end the analysis, Aubin refers to the next paragraph of the Supreme Court’s opinion in
Le Francois,
where the court noted that “[u]nless the requirements of [the reconsideration statutes] are satisfied, any action to reconsider a prior interim order must formally begin with the court
on its own motion.” (Le Francois, supra,
In response, Kay points out that despite the wording of the order, it is clear that the judge was firmly convinced he had made an error, and intended, by his order granting reconsideration, to correct that error. Moreover, the judge recognized the problem posed by section 1008,
6
and expressly relied on the court’s inherent authority in changing its earlier ruling. Thus, Kay relies on the Supreme Court’s statement in
Le Francois
that it does not matter how the trial court came to believe its order was wrong.
(Le Francois, supra,
We conclude that Le Francois simply requires that the trial court reconsider a prior ruling based on its own realization that the ruling was erroneous, and not based upon a determination that the motion to reconsider should itself be granted on its merits. Aubin contends that even so, the trial judgе went beyond what is permitted by Le Francois, in that he did not reverse himself solely because his prior ruling was in error, but instead took into consideration the “new” evidence submitted with Kay’s motion for reconsideration.
We do not find any factual support in the record for this contention. Moreover, while it is true that the judge’s order stated that the motion for *1309 reconsideration was being granted, in context, it is clear that the judge’s intent was to grant reconsideration on the court’s own motion. The court based its decision to reconsider on the court’s inherent authority to do so, once it realized that a mistake had been made. Kay’s motion for reconsideration was brought on the “new evidence” that the broker had agreed to the delay in listing, and the motion was supported by a declaration from the broker to that effect. However, the judge stated that the basis for his ruling was his rereading of the papers submitted with the original motion, and the order did not rely on or even mention Kay’s additional evidence. The evidence submitted with the original motion is clearly sufficient to support the court’s ultimate ruling that Kay was entitled to the listing bonus, and Aubin does not argue otherwise on appeal. 7 In light of these circumstances, we conclude thаt in stating that Kay’s motion for reconsideration was “granted,” the court simply meant that it was providing the relief sought by the motion, and did not mean to say that it was granting the motion itself.
Nonetheless, Aubin argues that an order granting reconsideration must be reversed if its issuance was prompted by the filing of a motion for reconsideration that did not meet the requirements of the reconsideration statutes. We disagree. There is nothing in the Supreme Court’s opinion in
Le Francois
that justifies this conclusion. To the contrary, an examination of the result in
Le Francois
provides support for the opposite conclusion. Although the court reversed the order granting summary judgment on reconsideration, it also declined to hold that the case had to go to trial. Instead, it expressly stated that “[o]n remand, nothing prohibits the court from reconsidering its previous ruling on
its own motion,
a point on which we express no opinion.”
(Le Francois, supra,
Furthermore, both of the cases on which Aubin relies in support of his argument to the contrary are distinguishable. In
Kerns
v.
CSE Ins. Group
(2003)
The Court of Appeal reviewed the case law regarding whether section 1008 was jurisdictional—an issue that had not yet been resolved by the Supreme Court at that time—and agreed with those courts that had held “that trial courts have the inherent power to reconsider and correct their own interim decisions in order to achieve substantial justice. [Citations.]”
(Kerns, supra,
The present case, in contrast, does not involve any possibility of forum shopping, because the judge was reconsidering his own earlier order. Moreover, Aubin does not argue on appeal that the judge’s second ruling was substantively incorrect. Accordingly, the “circumstances of this case”
(Kerns, supra,
Aubin argues that in order to affirm in this case, we would have to follow
Remsen
v.
Lavacot
(2001)
In
Remsen, supra,
The second case on which Aubin relies is
New York Times Co.
v.
Superior Court
(2005)
The defendant petitioned for a writ of mandate directing the trial court to vacate its оrder granting reconsideration, and to reinstate the original summary judgment. While the writ proceeding was pending in the Court of Appeal, the Supreme Court decided
Le Francois, supra,
The case before us is clearly distinguishable. In
New York Times,
there was nothing in the record indicating that the trial court believed its original ruling was in error. Here, by contrast, the trial court explicitly stated that it was reversing its original ruling based on its inherent authority to correct an
*1312
erroneous decision, and expressly relied on case law
(Darling, Hall & Rae v. Kritt, supra,
Aubin alternatively argues that under
Le Francois,
a trial court has inherent authority only to reconsider “interim” rulings, citing the footnote in that case stating that “[wjhat we say about the court’s ability to reconsider interim orders does not
necessarily
apply to final orders, which present quite different concerns.”
(Le Francois, supra,
We read the Supreme Court’s footnote simply as a cautionary statement that its holding in
Le Francois
may not apply to
all
final orders, an issue not examined in that case inasmuch as the order under review was interim. In fact, the plain language of subdivision (e) of section 1008 states that “[tjhis section . . . applies to all applications to reconsider any order ..., whether the order... is interim or final.” (See
Lucas
v.
Santa Maria Public Airport Dist.
(1995)
Our conclusion that a court may reconsider final as well as interim orders on its own motion is also supported by the legislative history of the 1992 amendments to section 1008, which the Le Francois court was construing. (See Le Francois, supra, 35 Cal.4th at pp. 1098-1099.) These amendments were introduced with the following statement of intent: “The Legislature finds and declares the following: [f] (a) Since the enactment of Section 1008 of the Code of Civil Procedure, some California courts have found that the section does not apply to interim orders. [][] (b) In enacting Section 4 of this act, it is the intent of the Legislature to clarify that no motions to reconsider any order made by a judge or a court, whether that order is interim or final, may be heard unless the motion is filed within 10 days after service of written notice *1313 of entry of the order, and unless based on new or different facts, circumstances, or law. [1] (c) In enacting Section 4 of this act, it is the further intent of the Legislature to clarify that no renewal of a previous motion, whether the order deсiding the previous motion is interim or final, may be heard unless the motion is based on new or different facts, circumstances, or law. [(K] (d) Inclusion of interim orders within the application of Section 1008 is desirable in order to reduce the number of motions to reconsider and renewals of previous motions heard by judges in this state.” (Stats. 1992, ch. 460, § 1, p. 1831.) This statement makes clear that in amending section 1008 to add the language making that statute exclusive and jurisdictional, the Legislature intended it to apply to interim and final orders alike. Thus, the fact that the order in this case was issued after judgment, and in that sense was “final,” 9 does not take it outsidе the ambit either of section 1008, or the construction given to that statute by the Supreme Court in Le Francois.
Finally, we note that shortly after the completion of briefing in this case, our colleagues in the Third District held that even if a trial judge errs in granting reconsideration, “that error cannot be deemed reversible without reaching the merits of the . . . issue” on which the court ruled.
(People v. Edward D. Jones & Co.
(2007)
In closing, we recognize that our holding in this case gives the goal of allowing the courts to do substantial justice priority over the competing goal of conserving judicial resources.* 11 At oral argument, Aubin’s counsel argued that affirming the result in this case would encourage counsel to file frivolous motions for reconsideration. We recognize the validity of this concern, and caution that our opinion must not be read as condoning the filing of unwarranted motions for reconsideration in the hope that it sparks trial courts to change rulings on their own initiative. We believe, however, that trial courts have the tools at their disposal to deal with this issue if it should arise. The threat of assiduous enforcement of the provisions for sanctions and contempt in subdivision (d) of section 1008 should be sufficient to deter parties from filing motions for reconsideration that do not meet the strictures of that statute. 12 In addition, we stress that in order to grant reconsideration on its own motion, the trial court must conclude that its earlier ruling was wrong, and change that ruling based on the evidence originally submitted. Thus, our ruling does not permit parties to obtain reconsideration relying on evidence that could аnd should have been, but was not, presented to the court in connection with the original motion.
*1315 IV.
DISPOSITION
The trial court’s order is affirmed. Kay is awarded her costs on appeal.
Reardon, J., and Rivera, J., concurred.
Notes
As is customary in family law cases where parties share the same surname, we refer to them by their first names for ease of reference, meaning no disrespect.
(Rubenstein
v.
Rubenstein
(2000)
All further references to dates are to the year 2005 unless otherwise noted.
Kay does not dispute that the order is appealable as a postjudgment order under Code of Civil Procedure section 904.1, subdivision (a)(2).
Section 1008, subdivision (e), provides as follows: “(e) This section specifies the court’s jurisdiction with regard to applications for reconsideration of its orders and renewals of previous motions, and applies to all applications to reconsider any order of a judge or court, or for the renewal of a previous motion, whether the order deciding the previous matter or motion is interim or final. No application to reconsider any order or for the renewal of a previous motion may be considered by any judge or court unless made according to this section.”
The present case does not involve summary judgment, so we express no opinion as to whether our holding in this case would apply to a trial court’s reconsideration of a summary judgment ruling. We note, however, that in
Le Francois, supra,
Kay does not seriously argue on this appeal that her motion met the requirements of section 1008. For the purpose of this opinion, we assume that the trial court was correct in ruling (at least impliedly) that it did not.
In addition to the “oblique” statement in Kay’s original declaration that the “broker had no choice but to suggest that the listing be delayed,” Kay also stated, not at all obliquely, that “the broker made sensible decisions to postpone the listing in view of [Aubin’s] failure to perform the work he was supposed to do”; that she herself had met both of the conditions for the listing bonus; and that she had done “everything [she] could to get this house sold and [was] entitled to the [listing] bonus.”
Darling, Hall & Rae
v.
Kritt, supra,
In another sense, however, the original order was
not
yet “final” at the time the judge reconsidered it, because the time to appeal it had not yet expired. Thus, this appeal does not present, and we therefore do not decide, the issue whether a trial court can reconsider an appealable order on its own motion after the time to appeal from that order has expired. This circumstance may well have been the issue the Supreme Court had in mind when it indicated in
Le Francois
that “. . . final orders . . . present quite different concerns” from interim orders.
(Le Francois, supra,
In
Le Francois,
the majority of the court rejected Justice Kennard’s view that the error committed by the trial court in that case was harmless. It did so, however, because the issue had not been briefed on appeal, and in addition, the trial court had not given the parties an opportunity to be heard before reversing its ruling, and the court “[did] not know what would have occurred if it had done so.”
(Le Francois, supra,
« ‘[pjhe stated legislative purpose behind the 1992 amendment to section 1008 was to conserve judicial resources. . . . This legislative purpose is аdvanced if section 1008 is understood to apply to the actions of the parties, not to a court’s sua sponte reconsideration of its own interim order. When the court rules upon a party’s motion, it is to be expected that the losing party will often feel the court has erred, and therefore may be inclined to seek reconsideration if such a procedure is readily available. Thus, absent section 1008, trial courts might find themselves inundated with reconsideration motions requiring that they rehash issues upon which they have already ruled and about which they have no doubt. Section 1008, properly construеd, protects trial courts from being forced to squander judicial time in this fashion. We think it would be a much less common occurrence, however, that a trial court would sua sponte conclude that its prior ruling was erroneous and seek to modify it. Forcing the parties to proceed where there is recognized error in the case would result in an enormous waste of the court’s and the parties’ resources.’ [Citation.]” (Le Francois, supra, 35 Cal.4th at pp. 1106-1107.)
Subdivision (d) of section 1008 provides that: “(d) A violation of this section may be punished as a contempt and with sanctions as allowed by Section 128.7. In addition, an order made contrary to this section may be revoked by the judge or commissioner who made it, or vacated by a judge of the court in which the action or proceeding is pending.”
