Judge: John C. Gastelum, Case: 22-01257206, Date: 2023-08-09 Tentative Ruling

Motion for Leave to File Cross-Complaint

Ruling:  Off Calendar– no hearing will be held.   Defendant Corner Escrow, Inc. (“Defendant”) moves for leave to file a cross-complaint against Plaintiff Gerar Jamal, an individual and as sole trustee of the King Jamal Trust dated June 2, 2017 on the ground that the proposed cross-complaint arises out of the same transaction or occurrence as does the Complaint and is a related cause of action under Code of Civil Procedure section 426.50, but was not pleaded earlier as a result of mistake, inadvertence, and excusable neglect.

A cross-complaint is compulsory when it has a cause of action which arises out of the same transaction, occurrence, or series of transactions or occurrences as the cause of action which the plaintiff alleges in his complaint.  (Code Civ. Proc., § 426.10(c).)  When a party fails to file a compulsory cross-complaint at the time of answering the complaint, whether through oversight, inadvertence, mistake, neglect, or other cause, that party may seek leave to file a cross-complaint at any time during the action.  (Code Civ. Proc., § 426.50.)  “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.”  (Ibid.)

Here, the proposed cross-complaint arises out of the same incident as that alleged in the Complaint and Cross-Complaint filed by Defendant RFF Family Partnership, LP.  Defendant’s proposed-cross-complaint is therefore compulsory. 

There is no evidence of bad faith on the part of Defendant.  Thus, the Court GRANTS Defendant’s unopposed Motion.  Defendant is ordered to separately file and serve its cross-complaint. 

Defendant to give notice.