Judge: Gregory Keosian, Case: 21STCV10662, Date: 2022-08-23 Tentative Ruling

Case Number: 21STCV10662    Hearing Date: August 23, 2022    Dept: 61

I.                   MOTION TO BIFURCATE

 “The court, in furtherance of convenience or to avoid prejudice, or when separate trials will be conducive to expedition and economy, may order a separate trial of any cause of action . . . or of any separate issue . . . .” (Code Civ. Proc., § 1048, subd. (b).) Additionally, “[t]he court may, when the convenience of witnesses, the ends of justice, or the economy and efficiency of handling the litigation would be promoted thereby, on motion of a party, after notice and hearing, make an order . . . that the trial of any issue or any part thereof shall precede the trial of any other issue or any part thereof in the case . . . .” (Code Civ. Proc., § 598.)

“It is within the discretion of the court to bifurcate issues or order separate trials of actions, such as for breach of contract and bad faith, and to determine the order in which those issues are to be decided.” (Royal Surplus Lines Ins. Co., Inc. v. Ranger Ins. Co. (2002) 100 Cal.App.4th 193, 205.) “The major objective of bifurcated trials is to expedite and simplify the presentation of evidence.” (Foreman & Clark Corp. v. Fallon (1971) 3 Cal.3d 875, 888.)

Cross-Defendants and Cross-Complainants Michael Taverna and Cinday Nelson-Mullen move to sever and hold an early, separate trial upon the dueling claims for declaratory relief raised by themselves on one hand and Broadside and Petzel on the other in their respective cross-complaints. Moving parties contend that these claims are distinct from the other issues raised in this proceeding, that they concern issues of contract interpretation and equitable remedies amenable to bench trial, and that their early resolution would facilitate the resolution of other claims raised by different parties.

As to the nature of the claims, moving parties contend that they involve the same, discrete facts and legal issues: the parties rights and responsibilities under their April and December 2020 contracts. (Motion at pp. 10–11.) Broadside alleges that a dispute has arisen based on its power to rescind the December 2020 agreement pursuant to a contractual provision allowing for cancellation in the event a lawsuit against a party to the agreement is discovered within a particular window of time. (Broadside XC ¶ 75.) Moving parties allege the contrary. (Taverna XC ¶ 23.)

Moving parties contend that trying these competing declaratory claims will facilitate this litigation, as it will clarify who controls Broadside, and thus who controls Broadside’s claims against other parties. (Motion at p. 10.) Moreover, it will resolve the only claims alleged by Broadside against the moving parties.

Moving parties also note that declaratory relief is an equitable remedy (See Artus v. Gramercy Towers Condominium Assn. (2018) 19 Cal.App.5th 923, 930) and as such may be tried before a judge before legal issues are tried. (See Orange County Water Dist. v. Alcoa Global Fasteners, Inc. (2017) 12 Cal.App.5th 252, 355; Motion at p. 10.)  What’s more, claims for declaratory relief are statutorily entitled to preference “over all other cases,” with few exceptions, meaning an early resolution of these claims would promote statutory policies. (Code Civ. Proc. § 1062.3, subd. (a).)

Moving parties have demonstrated good cause for the severance of the declaratory relief claims raised by themselves and Broadside in their respective cross-complaints. The issues involved are factually discrete, would not require resolution of other aspects of this litigation, and rest upon matters of law and equity ordinarily (i.e. contractual interpretation and declaratory relief) upon which a bench trial would be proper. A decision on the issues raised in these declaratory relief claims stands to clarify this litigation, as a decision on who owns Broadside under these agreements may affect Broadside’s claims and defenses. No party has filed an opposition to the present motion.

The motion is therefore GRANTED.