Judge: Barbara M. Scheper, Case: 22STCV37468, Date: 2023-04-26 Tentative Ruling
Case Number: 22STCV37468 Hearing Date: April 26, 2023 Dept: 30
Calendar No.
Alvarado vs. Valparaiso
Motors, Inc., et. al., Case
No. 22STCV37468
Tentative Ruling
re: Defendant’s Motion for Leave to File
Cross-Complaint
Defendant Freeway Funding, Inc. (Freeway
Funding) moves for leave to file a Cross-Complaint against Plaintiff Angelica
Alvarado (Plaintiff). The motion is granted.
A party shall file a
cross-complaint against any of the parties who filed the complaint or
cross-complaint against him or her before or at the same time as the answer to
the complaint or cross-complaint. (Code Civ. Proc. § 428.50, subd. (a).) Any
other cross-complaint may be filed at any time before the court has set a date
for trial. (Code Civ. Proc., § 428.50, subd. (b).) A party shall obtain leave
of court to file any cross-complaint except one filed within the time specified
in subdivision (a) or (b). Leave may be granted in the interest of justice at
any time during the course of the action. (Code Civ. Proc., § 428.50, subd.
(c).)
A party
who failed to plead a compulsory cross-claim, “whether through oversight,
inadvertence, mistake, neglect, or other cause, may apply to the court for
leave to amend his pleading, or to file a cross-complaint, to assert such cause
at any time during the course of the action. The court, after notice to the
adverse party, shall grant, upon such terms as may be just to the parties,
leave to amend the pleading, or to file the cross-complaint, to assert such
cause if the party who failed to plead the cause acted in good faith. This subdivision
shall be liberally construed to avoid forfeiture of causes of action.” (Code
Civ. Proc., § 426.50.)
Plaintiff’s claims in
this action arise from the purchase of a 2017 Nissan Pathfinder from Defendant
Valparaiso Motors, Inc. (Comp. ¶ 9.) Freeway Funding is the assignee of the
Retail Installment Sales Contract for Plaintiff’s purchase of the vehicle.
(Comp. ¶ 4.)
Freeway Funding’s
proposed Cross-Complaint alleges that Plaintiff breached the parties’ contract
by failing to maintain insurance for the vehicle and by failing to make a
monthly payment on the vehicle. (Motion, Ex. 1.)
Plaintiff argues that
leave should be denied because Freeway Funding filed its Answer without filing
the Cross-Complaint, despite it having knowledge of the facts underlying the
cross-claims. However, because the proposed cross-claims are compulsory, leave
to amend must be granted absent bad faith. (Code Civ. Proc. § 426.50.)
Plaintiff has not presented any basis for denying leave; the purported fact
that Freeway Funding delayed filing its cross-claims until after settlement
negotiations broke down does not constitute bad faith. Accordingly, the motion
is granted.