General Insurance v. Superior Court
General Insurance v. Superior Court
Opinion of the Court
Opinion
General Insurance Company of America, defendant in an action pending in respondent superior court, petitions for writ of mandate to compel dismissal of the action.
On three subsequent occasions, petitioner’s attorney acknowledged additional extensions of time by letter, finally confirming—also by letter—an open extension of time to answer or otherwise respond, terminable on 10 days’ written notice.
On 10. September 1974 plaintiff gave petitioner written notice to answer; petitioner then moved to dismiss pursuant to Code of Civil Procedure section 581a, subdivisions (a) and (c), and the motion was denied. Petitioner now asks us to mandate dismissal; we must deny its petition.
The Statutory Provisions
i
Code of Civil Procedure section 581a provides: “(a) . . . [A]ll actions heretofore or hereafter commenced shall be dismissed by the court in which the same shall have been commenced, on its own motion, or on the motion of any party interested therein, whether named as a party or not, unless the summons on the complaint is served and return made within three years after the commencement of said action, except where the parties have filed a stipulation in writing that the time may be extended or the party against whom the action is prosecuted has made a general appearance in the action. [¶]. . . [¶] (c) All actions, heretofore or hereafter commenced, shall be dismissed by the court in which the same may be pending, on its own motion, or on the motion of any party interested therein, if no answer has been filed after either service has
Discussion of Subdivision (a)
A written stipulation between attorneys recognizing jurisdiction of the court over the parties constitutes a general appearance by defendant. (Anglo-California Bank v. Griswold (1908) 153 Cal. 692, 696-697 [96 P. 353]; Roth v. Superor Court (1905) 147 Cal. 604, 605 [82 P. 246]; Cooper v. Gordon (1899) 125 Cal. 296, 300-302 [57 P. 1006]; RCA Corp. v. Superior Court (1975) 47 Cal.App.3d 1007, 1009-1010 [121 Cal.Rptr. 441]; O’Keefe v. Miller (1965) 231 Cal.App.2d 920, 924 et seq. [42 Cal.Rptr. 343]; Brown v. Douglas Aircraft Co. (1958) 166 Cal.App.2d 232, 235 et seq. [333 P.2d 59]; Merner Lumber Co. v. Silvey (1938) 29 Cal.App.2d 426, 428 [84 P.2d 1062]; Smith v. Moore Mill & Lumber Co. (1929) 101 Cal.App. 492, 494 et seq. [281 P. 1049]; California etc. Co. v. Superior Court (1910) 13 Cal.App. 65, 69 [108 P. 882]; see Davenport v. Superior Court (1920) 183 Cal. 506, 508 et seq. [191 P. 911]; Palmer v. Superior Court (1961) 192 Cal.App.2d 302, 306 [13 Cal.Rptr. 301]; cf. Code Civ. Proc., § 417.10, subd. (d).)
Whether a particular act of the defendant reflects an intent to submit to the jurisdiction of the court, constituting a general appearance, depends upon the circumstances. (Davenport v. Superior Court, supra, 183 Cal. 506, 511; Smith v. Moore Mill & Lumber Co., supra, 101 Cal.App. 492, 494 et seq.; see 1 Witkin, Cal. Procedure (2d ed. 1970) pp. 646-647.)
Petitioner accepted service in its first letter to the Livermore City Attorney reflecting an intent to submit to the court’s jurisdiction. Having received petitioner’s written stipulation accepting service, plaintiff cannot have been expected to then commence service, to complete service not commenced, or to return service.
Discussion of Subdivision (c)
Subdivision (c) penalizes a plaintiff who fails to obtain default judgment within the prescribed period by requiring dismissal. Like the service requirement of subdivision (a) and five-year trial requirement of Code of Civil Procedure section 583, it is designed to encourage diligence in the prosecution of an action once it has been filed. (Gonsalves v. Bank of America (1940) 16 Cal.2d 169, 172 [105 P.2d 118]; Moore v. Superior Court (1970) 8 Cal.App.3d 804, 810 [87 Cal.Rptr. 620]; J. A. Thompson & Sons, Inc. v. Superior Court (1963) 215 Cal.App.2d 719, 722 [30 Cal.Rptr. 471].) However, the three provisions allow extension of time by filed written stipulation, reflecting
The written stipulation extending time to answer may be filed after expiration of the three-year period—when filed prior to an order of
A written stipulation extends section 583’s five-year term for bringing the action to trial if it expressly either waives the right to dismissal, or extends the time of trial to a date beyond the five-year period. But merely extending the time of trial to sometime within the five-year term—absent a showing the parties intended otherwise—will not extend the deadline. (J. C. Penney Co. v. Superior Court (1959) 52 Cal.2d 666, 669 [343 P.2d 919].) The instant case falls between the two rules set forth in J. C. Penney. Here, the stipulation does not expressly extend time either within or beyond the allotted period. Rather, time is extended indefinitely, subject to termination by notice, and the stipulation remained in force at expiration of the period.
A written agreement extending time to answer reflects mutual intent to defer the proceedings and must be enforced. It would be unconscionable to permit a plaintiff, after he had granted a defendant time to answer, to take default judgment during the extension. Expressly excusing the duty to answer, the agreement impliedly stays the power of the plaintiff to take default.
Having by the instant written agreement precluded plaintiff from taking a default judgment prior to expiration of the three-year period, petitioner may not now rely on plaintiff’s failure to take default to obtain dismissal of the action.
We conclude that the trial court properly denied the motion to dismiss.
Defendant’s petition for writ of mandate is denied.
McComb, J., Tobriner, J., and Mosk, J., concurred.
Busching v. Superior Court (1974) 12 Cal.3d 44, 50-51 [115 Cal.Rptr. 241, 524 P.2d 369],involving an extension of time to obtain representation, is distinguishable. There
In 1949, the Legislature provided for waiver of the judgment or answer requirement. (Stats. 1949, ch. 463, p. 810.) Prior to that time, a provision permitting stipulations extending time applied to the five-year period for bringing to trial but not to the three-year default judgment requirement. Rio Del Mar etc. Club v. Superior Court (1948) 84 Cal.App.2d 214, 225-226 [190 P.2d 295] and Schultz v. Schultz (1945) 70 Cal.App.2d 293, 298-299 [161 P.2d 36] were decided before the 1949 amendment. Language in those cases that the parties may not extend by stipulation the three-year period for judgment or answer states the law as it existed at the time of those decisions—prior to the 1949 amendment.
In City of Los Angeles v. Superior Court (1921) 185 Cal. 405, 413 [197 P. 79], the stipulation deferred trial for one year and further provided that at least a 90-day notice of the time set for trial shall be given. The agreement also provided that “plaintiff shall not be held to have failed to prosecute said cause during the said year, and that no part of the said year shall be considered should any question arise in said cause concerning the prosecution thereof.” (At p. 408.) The express provision excluding one year from the computation of the period to bring to trial precludes inferring a further extension based on the notice requirement, and serves to distinguish the case. Moreover, in that case the plaintiff could bring the cause to trial within the five-year period while performing the agreement, whereas in the instant case default could not be obtained without either terminating the agreement or violating its implied term.
Requiring dismissal for failure to return service within three years, Miles & Sons, Inc. v. Superior Court, supra, 181 Cal.App.2d 151, 152, held a written stipulation extending time to appear, answer, or otherwise move or plead did not extend time for service return. However, the court did not consider the general appearance doctrine or the cases cited above discussing it. Accordingly, the case is not helpful in determining whether there was compliance with subdivision (a) in the instant case. Although it involved the effect to be given to a written stipulation extending time to plead, the case was not concerned with the answer or default requirement of subdivision (c). Obviously, an extension of time to plead reflects an intent to extend time to answer and by necessary implication precludes taking default; it does not reflect an intent to extend time for service return.
The plaintiff alleged in its answer to the alternative writ that during the three-year period following acceptance of service by petitioner, there was performance of some obligations guaranteed by petitioner and promises of performance of all by petitioner’s principals and their successors in interest, and that plaintiff gave notice to answer only after it appeared that the obligations were not to be performed. These allegations in the return to the alternative writ are not disputed. In the view we have taken of the matter, it is unnecessary to reach the question whether petitioner was estopped from seeking dismissal for delay by continued performance of the obligations sued upon after action commenced, and assurances of complete performance, coupled with the stipulations extending time to answer. (Cf. Tresway Aero, Inc. v. Superior Court, supra, 5 Cal.3d 431, 436 et seq.; Cooper v. Gordon, supra, 125 Cal. 296, 301.)
Dissenting Opinion
I dissent.
The respondent trial court was required to dismiss the action under subdivision (c) of Code of Civil Procedure section 581a,
It is true that an agreement which expressly excuses the defendant from filing an answer impliedly and simultaneously stays the plaintiff’s power to take a default.
In any event the express exception to section 581a, subdivision (c), relied upon by the majority, which was added in 1949 and declares that the subdivision shall operate “except where the parties have filed a stipulation in writing that the time may be extended,”
A stipulation which merely extends time to plead and is therefore outside the express exception to the dismissal requirements of section 581a, subdivision (c), can nevertheless be included in the acts and conduct of the parties which bring implied exceptions to the dismissal requirement into play. (Tresway Aero, Inc. v. Superior Court, supra, 5 Cal.3d 431, 440; Woley v. Turkus (1958) 51 Cal.2d 402, 407 [334 P.2d 12].) In Tresway we held that a defendant who received defective service of process and obtained a stipulation extending the time to plead from within to beyond the three-year period for filing a return of service under section 581a, subdivision (a), was estopped to move for dismissal under
Relying on Tresway, plaintiff claims estoppel in the present case, asserting that during the year between the filing of the complaint and the open extension of time to plead, petitioner’s course of conduct in requesting and obtaining extensions of time to plead led plaintiff to believe “that pleading technicalities would not be invoked.” Some of the extension requests were made after previous extensions had expired, and the petitioner’s letters confirming the extensions were informally phrased and made no reference to these expirations of previously granted extensions. This informality during the early part of the three-year period of section 581a, subdivision (c), could not reasonably be construed by plaintiff’s counsel as a misrepresentation that the subdivision’s requirements for timely entry of default judgment in the absence of an answer would be waived. Unlike the situation in Tresway, the stipulations did not specify a pleading date beyond the three-year period, and there was no crucial hidden defect which would probably have been revealed in the absence of the stipulations (see id., at p. 441) and of which petitioner sought to take advantage once the period had expired. Similarly, petitioner’s acceptance in January 1972 of the terminable open extension of time to plead could not reasonably be regarded by plaintiff’s counsel as a commitment by petitioner not to raise any legally available defense in the event that plaintiff refrained from giving a 10-day notice to terminate the extension throughout the ensuing 2 years.
Plaintiff further alleges in its return to the alternative writ that its delay in giving notice to plead was in reliance not only upon petitioner’s request for the extension of time but also upon the partial performance of the obligations on which the suit had been brought and petitioner’s assurances over a period of more than three years that plaintiff’s claims would be satisfied by completion of such performance. Plaintiff alleges
Plaintiff makes no claim that its failure to have a timely default judgment entered was excused by the implied exception for impracticability and futility which we have recognized as applicable to the dismissal provisions of section 581a. (See Busching v. Superior Court (1974) 12 Cal.3d 44, 53 [115 Cal.Rptr. 241, 524 P.2d 369]; Wyoming Pacific Oil Co. v. Preston (1958) 50 Cal.2d 736 [329 P.2d 489]; McKenzie v. City of Thousand Oaks (1973) 36 Cal.App.3d 426 [111 Cal.Rptr. 584].) Although a stipulation that is insufficient to invoke an exception expressly provided by the statute may nevertheless be material evidence on the issue of impracticability and futility (Woley v. Turkus, supra, 51 Cal.2d at p. 408; Pacific Greyhound Lines v. Superior Court (1946) 28 Cal.2d 61, 67 [168 P.2d 665]), the stipulations here had no such effect. The stipulations other than that for an open extension had terminated by the end of the first of the 3 years which section 581a, subdivision (c), gave plaintiff to take a default judgment, and thereafter the agreed open extension interposed no barrier more formidable than the necessity for giving a simple 10-day notice to plead. (See J. C. Penney Co. v. Superior Court (1959) 52 Cal.2d 666, 671-672 [343 P.2d 919].)
Since in my view petitioner, was entitled to a dismissal under subdivision (c) of section 581a, I deem it unnecessary to determine whether petitioner also had a right to dismissal under subdivision (a).
I would issue the writ.
Sullivan, J., and Richardson, J., concurred.
Petitioner’s application for a rehearing was denied November 25, 1975. Wright, C. J., Sullivan, J., and Richardson, J., were of the opinion that the application should be granted.
All section references hereinafter are to the Code of Civil Procedure unless otherwise indicated.
Section 585, subdivisions I and 2, authorizes the taking of a default only if no answer or other proper response to the complaint has been filed “within the time specified in the summons, or such further time as may be allowed.”
“The provision contained in the stipulation for a continuance of October 4, 1915, that at least ninety days’ notice shall be given of the resetting of the cause for trial, did not operate in any way to extend the running of the five-year period. The plaintiff was at liberty to have the trial set for the day after the stipulated year of continuance had expired, and could have served notice thereof at any time within ninety days of such date. It had no more right to have a continuous extension of its time in which to bring the case to trial under this ninety days’ stipulation than it would have had under the five-day notice required by statute. It is true that under this stipulation for ninety days’ notice there would have been no date within ninety days of the expiration of the five-year period for bringing the cause to trial when it could have been set without the consent of defendant, but that was one of the contingencies arising under the stipulation that plaintiff was bound to provide against. No such attempt to set for trial was made, but it could not have extended plaintiff’s rights in the premises if it had been made and opposed by defendant.” (185 Cal. at p. 413.)
See Statutes 1949, chapter 463, section 1, page 810, adding this form of proviso to what are now subdivisions (a) and (c) of section 581a.
Reference
- Full Case Name
- GENERAL INSURANCE COMPANY OF AMERICA, Petitioner, v. THE SUPERIOR COURT OF ALAMEDA COUNTY, Respondent; CITY OF LIVERMORE, Real Party in Interest
- Cited By
- 44 cases
- Status
- Published