Opinion
The first three causes of action of plaintiff’s first amended complaint were against only Edward Lyons who apparently remains a party defendant to the lawsuit; the fourth, fifth and sixth causes of action are against Fireman’s Fund Insurance Company (hereinafter referred to as Insurer) alone. Insurer’s demurrer on the ground the pleading “fails to state a cause of action against” it, was sustained without leave to amend. An order of “partial” dismissal was entered from which plaintiff appeals. 1
*750 Common to each of the three causes of action against Insurer are the following allegations: about October 1, 1971, defendant Lyons retained plaintiff attorney to represent him in connection with a claim for personal injuries arising out of an accident involving Merle Karbeling on September 15, 1971. The retainer agreement was in writing (copy attached to amended complaint) and provided for a contingent fee plus express creation of a lien in favor of plaintiff counsel on any moneys collected arising out of Lyon’s claim from said accident. Plaintiff performed all conditions required under the written agreement except as his performance has been rendered futile and impossible by Lyons’ actions. About December 1, 1972, Lyons discharged plaintiff as his attorney without cause and proceeded in propria persona in the action on the claim entitled Lyons v. Karbeling, No. WE C 26422, which plaintiff filed in the Los Angeles Superior Court. (The files in that case contained a substitution of counsel filed Dec. 26, 1972, substituting Edward Lyons “in pro per” as attorney of record in place and stead of John Siciliano.) About December 19, 1972, plaintiff Siciliano notified Insurer (Karbeling’s insurance carrier) of the lien which he had under the retainer contract. On information and belief, plaintiff alleged that in August of 1974 Insurer, with knowledge of plaintiff’s lien, paid to Edward Lyons the sum of $10,000 in settlement of Lyons’ claim arising out of the accident of September 15, 1971, involving Merle Karbeling, Insurer’s insured.
The fourth cause of action then alleges that an actual controversy has arisen between plaintiff and defendants concerning their respective rights and duties pursuant to the retainer agreement and the lien conferred by Lyons in plaintiff’s favor—plaintiff contends that pursuant to the retainer agreement, he had a lien on a cause of action of Lyons and upon settlement and payment of Lyons’ claim by Insurer it became obligated to pay plaintiff the sum of $4,000 pursuant to said agreement and lien; defendants deny the foregoing and particularly Insurer denies *751 that any lien was conferred upon plaintiff by virtue of the execution of the retainer agreement.
The fifth cause of action, following incorporation of the common allegations, alleges plaintiff’s demand that defendants pay “the amount set forth in the notice of lien,” and defendants’ refusal.
The sixth cause of action following incorporation of the common allegations, alleges: “By reason thereof, Defendant Fireman’s Fund is an involuntary trustee holding the sum of $4,000 in constructive trust for Plaintiff with the duty to pay Plaintiff the amount of said lien.”
“The subject matter of an action and the issues involved are determinable from the facts alleged rather than from the title of the pleading or the character of damage recovery suggested in connection with the prayer for relief. [Citations.]”
(Buxbom
v.
Smith,
Insurer’s assertion that none of the three causes of action allege performance of any service by plaintiff attorney, is erroneous. The retainer agreement was made October 1, 1971, and it was not until December 1, 1972, over a year later, that counsel was discharged. The agreement employed plaintiff to prosecute the action or claim for damages by reason of the accident; that in fact such action (Lyons v. *752 Karbeling) was filed appears on the face of the amended complaint. In paragraph 12 of the fourth cause of action (incorporated by reference in the fifth and sixth) plaintiff alleges he “has performed all conditions required of him under said written Retainer Agreement except as his performance has been rendered futile and impossible by the actions of said Defendant.” No special demurrer was interposed. The allegations are sufficient to allege performance as against a general demurrer.
In
Fracasse
v.
Brent,
While a contingent fee contract with creation of a lien in favor of counsel does not operate to transfer to counsel any part of the client’s cause of action
(Fifield Manor
v.
Finston,
In
Herron
v.
State Farm Mutual Ins. Co.,
In the fourth cause of action, plaintiff prayed for declaratory relief. Insurer contends that an action for declaratory relief does not lie against one who is not a party to the contract. Quoting from section 1060, Code of Civil Procedure, Insurer argues that “Inherent in this statutory right is some sort of legal instrument which exists between the parties,” and that plaintiff and Lyons “have apparently entered into some sort of legal relationship involving a contract for which there is a need for a declaration of rights,” but it (Insurer) was not a party to that contract. Section 1060 does not require the existence of a legal instrument between parties as a predicate for declaratory relief. Here plaintiff attorney and Lyons had entered into a contingent fee agreement which created a lien in plaintiff who, upon settlement between Lyons and Insurer, thus was an equitable assignee of the amount of the settlement to the extent of the fees due him. Insurer was a party involved in the settlement in which plaintiff attorney had an interest known to it (Insurer). That Insurer was not a party to the retainer agreement did not render it exempt from a declaratory relief action to determine rights and duties under the circumstances.
Oppenheimer
v.
General Cable Corp.,
Insurer further asserts that plaintiff may proceed against Lyons and needs no relief against it, and if Lyons were dissipating the funds, plaintiff could obtain a temporary restraining order and preliminary injunction against him. That this latter is not adequate, or preventive of declaratory relief was held in a case cited by
Insurer—City of Tiburon
v.
Northwestern Pac. R. R. Co.,
Finally, as stated in
Greenberg
v.
Hollywood Turf Club,
*756
In the fifth cause of action plaintiff alleged his demand for payment and defendants’ refusal to pay. Insurer argues, in effect, that this is for, what was designated in
Weiss
v.
Marcus,
In
Miller
v.
Rau,
In the sixth cause of action, after incorporation of the allegations common to the causes under consideration, plaintiff alleged that Insurer was an involuntary trustee of a constructive trust. Among other remedies acknowledged in
Jones
v.
Martin,
As to the whole of plaintiff’s claims against it, Insurer advances several additional arguments. It argues that it is the policy of the law to discourage litigation and to favor compromises—voluntaiy settlements —and to allow a discharged attorney to have a cause of action against an insurance company in such circumstances “will certainly discourage settlements because it will put the insurance company in the middle (and in another lawsuit) whenever an attorney is discharged.” Even though the law favors voluntary settlements or compromises, it does not favor the making thereof in derogation of the rights of those having a lien on the moneys or to whom other obligations are owing in connection therewith. Pointing out that when plaintiff was discharged, Lyons was substituted to act in propria persona, Insurer also argues that this made Lyons his own “attorney” and as such Lyons was both client and attorney, and that it rightfully could (indeed was required) to pay all settlement moneys to “attorney” Lyons. It relies on the rights and duties of an attorney under sections 283 and 284, Code of Civil Procedure, and upon
Navrides
v.
Zurich Ins. Co.,
Insurer submits that plaintiff seeks recovery of $4,000 which is 40 percent of the $10,000, the percentage provided by the contingent fee retainer agreement, and under
Fracasse
(
Finally, Insurer advances the position that
Fracasse
v.
Brent, supra, 6
Cal.3d 784, “changed drastically the attorney lien law in California” and that ever since its determination no right or obligation exists against a “debtor’s” insurance company. A somewhat similar argument was made and rejected in
Weiss
v.
Marcus, supra,
The claim that plaintiff nowhere alleged the performance by him of any services, reiterated herein by Insurer is without merit. As against the general demurrer, paragraph 12 of the amended complaint suffices in this regard. Even were this not correct, it would be improper to sustain the general demurrer to the first amended complaint (which for the first time contained allegations by plaintiff of the fifth and sixth causes of *760 action) without leave to amend, if this were the objection on which the ruling was being based.
The judgment (orders of partial dismissal of August 28, 1975, and September 10, 1975) is reversed.
Wood, P. J., and Hanson, J., concurred.
Notes
Named as defendants in the caption of both the complaint and the first amended complaint are—Edward Lyons (not a party to this appeal), Fireman’s Fund Insurance Company (the demurring defendant and respondent herein), and Fireman’s Fund American Insurance Companies (which does not appear to have been served and which has not appeared by demurrer or otherwise). On August 28, 1975, the trial court signed and filed an order of “partial” dismissal whereby the action was dismissed “as to the 4th, 5th and 6th causes of action as to the Fireman’s Fund Insurance Company only.” On September 10, 1975, the trial court signed and filed an order of dismissal in which it was recited that the demurrer of Fireman’s Fund Insurance Company, a corporation, Fireman’s Fund American Insurance Companies, having been sustained without leave to amend, the action “is dismissed” as to Fireman’s Fund Insurance Company and *750 Fireman’s Fund American Insurance Companies only. The resulting confusion is evident. Fireman’s Fund American Insurance Companies, while named in the caption of plaintiff’s pleadings, does not appear to be named or charged in any allegations of either complaint. The August 28th order effectively dismissed Fireman’s Fund Insurance Company from the suit and the subsequent September 10th order attempts again to do the- same as to this defendant (as well as Fireman’s Fund American Insurance Companies). Only one thing is certain—the trial court held that the first amended complaint failed to state a cause of action against Fireman’s Fund Insurance Company which was the insurer of Edward Lyons, and dismissed the insurer from the suit; and plaintiff’s appeal is timely whether it be from the August 28th or the September 10th order, or both.
Overruled in
Fracasse
v.
Brent, supra,
Judgment against defendant insurer was reversed in Gostin because there was no evidence that plaintiff attorney had performed any services as required by the contingent fee contract creating the lien (in fact the agreement apparently only provided a lien). The case was submitted on" stipulated facts, i.e., thtit facts in the complaint and not denied by the answer were true. The trial court' found plaintiff had performed services. This was alleged in the complaint but had been denied by the answer and there was no evidence supportive of the trial court’s finding.
