Cadle Co. II, Inc. v. Sundance Financial, Inc.
The CADLE COMPANY II, INC., Plaintiff and Appellant, v. SUNDANCE FINANCIAL, INC., Et Al., Defendants and Respondents
- Area
- civil
- Panel
- McINTYRE (author)
Analysis
The trial court sustained a demurrer and dismissed the action to renew a stipulated judgment as time-barred under the 10-year statute of limitations. The Court of Appeal affirmed, holding that the limitations period began when the stipulated judgment was entered in 1996, as the parties did not agree to the judgment to facilitate an appeal.
| Ruling reviewed | Standard | The court | The model |
|---|---|---|---|
Dismissal of the action to renew a stipulated judgment as time-barred.“Accordingly, the trial court properly dismissed this action as time-barred.” | de novo | correct | agree with court The appellate court correctly applied the standard of review for a demurrer, which is independent review without deference to the trial court. The court correctly identified that stipulated judgments are generally final upon entry, triggering the 10-year statute of limitations, and that no exception applied because the record did not show the stipulation was made to facilitate an appeal. |
Authorities
- relied: Sacramento Brewing Co. v. Desmond, Miller & Desmond (1999) 75 Cal.App.4th 1082 — Establishes the standard of review for a judgment of dismissal following the sustaining of a demurrer as independent review without deference to the trial court.
- relied: Turner v. Donovan (1942) 52 Cal.App.2d 236 — Holds that the 10-year statute of limitations for renewing a judgment commences when the judgment becomes final, typically after the time for appeal has passed.
- relied: Reed v. Murphy (1925) 196 Cal. 395 — Establishes that a stipulated judgment generally cannot be appealed and becomes final when entered.
- relied: Lawler v. Bannerman (1970) 8 Cal.App.3d 893 — Supports the rule that stipulated judgments become final when entered and are not normally subject to appeal.
- relied: Papadakis v. Zelis (1991) 230 Cal.App.3d 1385 — Reinforces that stipulated judgments are final upon entry unless an exception applies.
- relied: Norgart v. Upjohn Co. (1999) 21 Cal.4th 383 — Identifies the exception where a stipulated judgment is not final upon entry if both parties agreed to the judgment for the purpose of facilitating an appeal.
- relied: Connolly v. County of Orange (1992) 1 Cal.4th 1105 — Holds that a party stipulating to a judgment waives the right to appeal unless the purpose of the stipulation was to facilitate an appeal.
- relied: Mecham v. McKay (1869) 37 Cal. 154 — Historical authority supporting the waiver of appeal rights upon stipulation to judgment.
- relied: Kenworthy v. Hadden (1978) 87 Cal.App.3d 696 — Supports the principle that stipulating to a judgment waives the right to appeal absent an agreement to facilitate an appeal.
- relied: Rooney v. Vermont Investment Corp. (1973) 10 Cal.3d 351 — Acknowledges that stipulated judgments can be attacked on grounds such as lack of subject matter jurisdiction or if they go beyond the terms of the stipulation.
- relied: Selma Auto Mall II v. Appellate Department (1996) 44 Cal.App.4th 1672 — Holds that a party to a stipulated judgment can collaterally attack the judgment on grounds of voidness or lack of jurisdiction at any time.
- relied: Thorson v. Western Development Corp. (1967) 251 Cal.App.2d 206 — Supports the ability to collaterally attack a stipulated judgment for lack of jurisdiction or voidness.
The appellate opinion: sound — The opinion is sound because it correctly applies the established rule that stipulated judgments are final upon entry, triggering the statute of limitations, and properly rejects the appellant's argument for a new rule by citing decades of case law. It also correctly notes that the appellant failed to allege facts supporting the exception for judgments entered to facilitate an appeal.
The trial court sustained Sundance's demurrer and dismissed Cadle's action to renew a 1996 stipulated judgment as barred by the 10-year limitations period of Code of Civil Procedure section 337.5, subdivision (3). The Court of Appeal affirmed, holding that the limitations period on a stipulated judgment runs from entry of the judgment, because such a judgment is final when entered, unless the parties stipulated to it in order to facilitate an appeal.
| Ruling reviewed | Standard | The court | The model |
|---|---|---|---|
Sustaining demurrer and dismissing the action to renew the stipulated judgment as time-barred under section 337.5, subdivision (3)“Accordingly, the trial court properly dismissed this action as time-barred.” | de novo | correct | agree with court The court correctly stated the rule that the 10-year period on an action on a judgment runs from finality (Turner v. Donovan), and correctly applied the long-settled rule that a stipulated judgment is nonappealable and therefore final when entered (Reed v. Murphy; Connolly v. County of Orange), subject to the Norgart exception for stipulations entered to facilitate appeal. The judgment was entered April 18, 1996 and the complaint filed May 8, 2006, so the action was untimely under the correct rule. Cadle's argument that voidness-based attacks make stipulated judgments appealable was properly answered: such attacks are collateral and available at any time, so they do not delay finality. |
Dismissal without leave to amend following sustaining of the demurrer“Nor did Cadle seek leave to amend to add allegations that the stipulated judgment could have been appealed on one of these grounds.” | unclear | correct | agree with court The court did not articulate the abuse-of-discretion standard or cite Blank v. Kirwan, but it addressed the substance: Cadle neither sought leave to amend nor identified any facts (jurisdictional defect, judgment exceeding the stipulation, or stipulation to facilitate appeal) that would bring the case within an exception. Under Blank v. Kirwan the plaintiff bears the burden of showing how the complaint could be amended, and Cadle made no such showing, so the result is correct even though the standard was not expressly stated. |
Authorities
- relied: Sacramento Brewing Co. v. Desmond, Miller & Desmond (1999) 75 Cal.App.4th 1082 — A judgment of dismissal after a demurrer is sustained is reviewed independently, without deference to the trial court.
- relied: Turner v. Donovan (1942) 52 Cal.App.2d 236 — The 10-year limitations period on an action on a judgment runs from when the judgment becomes final, not from entry.
- relied: Reed v. Murphy (1925) 196 Cal. 395 — A stipulated (consent) judgment is ordinarily not appealable and is final when entered, though it may be attacked if it exceeds the stipulation.
- relied: Lawler v. Bannerman (1970) 8 Cal.App.3d 893 — A party who consents to a judgment may not appeal from it.
- relied: Papadakis v. Zelis (1991) 230 Cal.App.3d 1385 — A stipulated judgment is not appealable by a consenting party.
- relied: Norgart v. Upjohn Co. (1999) 21 Cal.4th 383 — A stipulated judgment is appealable where the parties stipulated to it for the purpose of facilitating an appeal.
- relied: Connolly v. County of Orange (1992) 1 Cal.4th 1105 — A party stipulating to a judgment waives the right to appeal unless the stipulation was intended to facilitate an appeal.
- relied: Mecham v. McKay (1869) 37 Cal. 154 — A judgment entered by consent of the parties cannot be appealed by a consenting party.
- relied: Kenworthy v. Hadden (1978) 87 Cal.App.3d 696 — Consent to a judgment waives the right to appeal from it.
- relied: Rooney v. Vermont Investment Corp. (1973) 10 Cal.3d 351 — A stipulated judgment may be attacked on grounds such as lack of subject matter jurisdiction or that it exceeds the terms of the stipulation.
- relied: Selma Auto Mall II v. Appellate Department (1996) 44 Cal.App.4th 1672 — A judgment void for lack of jurisdiction may be collaterally attacked at any time.
- relied: Thorson v. Western Development Corp. (1967) 251 Cal.App.2d 206 — A void judgment may be collaterally attacked at any time.
- missed: Blank v. Kirwan (1985) 39 Cal.3d 311 — When a demurrer is sustained without leave to amend, the reviewing court asks whether there is a reasonable possibility the defect can be cured by amendment; the plaintiff bears the burden of showing how, and denial is reviewed for abuse of discretion.
The appellate opinion: sound with gaps — The opinion correctly identifies when the section 337.5 period begins on a stipulated judgment and answers each of Cadle's arguments with controlling authority on nonappealability of consent judgments, the facilitate-appeal exception, and the availability of collateral attack on void judgments. Its only gap is that it does not expressly state the abuse-of-discretion standard for denial of leave to amend or cite Blank v. Kirwan, though it reaches the correct result by noting Cadle neither sought amendment nor identified curative facts.
Opinion — McIntyre
Opinion
McINTYRE, J.In this appeal we address the question of when the 10-year statute of limitations begins to run on an action to renew a stipulated judgment. (Code Civ. Proc., § 337.5, subd. (3), all statutory references are to this code unless otherwise specified.) We conclude that the *624 limitations period begins to run when the trial court enters the stipulated judgment, unless the parties agreed to the judgment for the purpose of facilitating an appeal. Accordingly, we affirm the dismissal of this action because it was filed more than 10 years after entry of the stipulated judgment and there is no indication that the parties agreed to the judgment to facilitate an appeal.
FACTUAL AND PROCEDURAL BACKGROUND
Union Bank and Pacific Scene, Inc. (Pacific Scene), entered into a stipulated judgment on April 18, 1996, which awarded $508,475.74 to Union Bank. The Cadle Company II, Inc. (Cadle), later acquired all right, title, and interest to the judgment. On May 8, 2006, Cadle filed the instant complaint against Pacific Scene and Sundance Financial, Inc. (together Sundance), Pacific Scene’s alleged successor in interest. Sundance demurred to the complaint, arguing that the matter was barred by the statute of limitations. The trial court agreed and dismissed the action.
STANDARD OF REVIEW
When reviewing a judgment of dismissal following the sustaining of a demurrer, we independently review the moving and opposition papers in order to determine whether the judgment was proper. (Sacramento Brewing Co. v. Desmond, Miller & Desmond (1999) 75 Cal.App.4th 1082, 1085 [89 Cal.Rptr.2d 760].) We make this determination without any deference to the trial court.
DISCUSSION
A lawsuit to renew a judgment is subject to a 10-year statute of limitations period. (§ 337.5, subd. (3).) This 10-year period does not ordinarily commence with the entry of judgment, but rather when the judgment becomes final, i.e., after the determination of an appeal, or, if no appeal is filed, after the time in which an appeal could have been filed. (Turner v. Donovan (1942) 52 Cal.App.2d 236, 238 [126 P.2d 187].) A stipulated judgment, however, may not normally be appealed, and becomes final when entered. (Reed v. Murphy (1925) 196 Cal. 395, 399 [238 P. 78]; Lawler v. Bannerman (1970) 8 Cal.App.3d 893, 894 [87 Cal.Rptr. 756]; Papadakis v. Zelis (1991) 230 Cal.App.3d 1385, 1387 [282 Cal.Rptr. 18].) An exception to this rule exists when both parties enter into the stipulated judgment in order to facilitate an appeal. (Norgart v. Upjohn Co. (1999) 21 Cal.4th 383, 400 [87 Cal.Rptr.2d 453, 981 P.2d 79].)
Here, the trial court entered the stipulated judgment on April 18, 1996. When Cadle filed the instant action to renew the stipulated judgment on May *625 8, 2006, the 10-year limitations period had already elapsed, rendering the action time-barred. To avoid this result, Cadle proposes a rule that would make all stipulated judgments final only when the time for appeal has passed. It claims that this rule is simpler, because the trial court would not need to examine the record. This claim is somewhat undermined, however, by Cadle’s admission that the court would still have to examine the record in order to determine whether the appealing party had received notice of the entry of judgment, since in the absence of such notice the time for appeal is extended from 60 days to 180 days. (Cal. Rules of Court, rule 8.104(a).) Cadle’s rule also ignores decades of case law holding that a party stipulating to a judgment waives the right to appeal unless the purpose of the stipulation was to facilitate an appeal. (Connolly v. County of Orange (1992) 1 Cal.4th 1105, 1111 [4 Cal.Rptr.2d 857, 824 P.2d 663]; Mecham v. McKay (1869) 37 Cal. 154, 158-159; Kenworthy v. Hadden (1978) 87 Cal.App.3d 696, 700 [151 Cal.Rptr. 169].)
Cadle also asserts that because stipulated judgments may be appealed under certain circumstances, such a judgment should be final only when the time for appeal has elapsed. It is true that stipulated judgments can be attacked on various grounds, such as lack of subject matter jurisdiction by the trial court or a judgment that goes beyond the terms of the stipulation. (Rooney v. Vermont Investment Corp. (1973) 10 Cal.3d 351, 359 [110 Cal.Rptr. 353, 515 P.2d 297]; Reed v. Murphy, supra, 196 Cal. at p. 399.) Cadle gives many other examples, all of which essentially fall into two categories: judgments that are facially void and judgments that are void for lack of jurisdiction by the trial court. A party to a stipulated judgment, however, can collaterally attack the judgment on these grounds at any time. (Selma Auto Mall II v. Appellate Department (1996) 44 Cal.App.4th 1672, 1683 [52 Cal.Rptr.2d 599]; Thorson v. Western Development Corp. (1967) 251 Cal.App.2d 206, 211-212 [59 Cal.Rptr. 299].)
Cadle’s complaint does not allege that there are any jurisdictional issues involved in this case, or that the stipulated judgment went beyond the terms of the stipulation. Nor did Cadle seek leave to amend to add allegations that the stipulated judgment could have been appealed on one of these grounds. Furthermore, there is nothing in the record indicating that Union Bank and Pacific Scene agreed to the stipulated judgment for the purpose of filing an appeal, and Cadle has not even attempted to argue that this exception applies. (We grant Sundance’s unopposed request for judicial notice of the stipulation for entry of judgment in the underlying case. (Evid. Code, § 452, subd. (d).))
In summary, the 10-year limitations period of section 337.5 begins to run when a judgment is final. Generally, stipulated judgments are final when *626 entered and Cadle has not alleged any facts showing why this general rule does not apply. Accordingly, the trial court properly dismissed this action as time-barred.
DISPOSITION
The judgment is affirmed. Costs are awarded to Respondents.
McDonald, Acting P. J., and O’Rourke, J., concurred.
Cites, in this corpus
- Sacramento Brewing Co. v. Desmond, Miller & Desmond C029428 · 1999-10-26
- Norgart v. Upjohn Co. S071633 · 1999-08-16
- Selma Auto Mall II v. Appellate Department F023828 · 1996-04-30
- Connolly v. County of Orange S016686 · 1992-02-27
- Papadakis v. Zelis A049637 · 1991-05-22
- Kenworthy v. Hadden Civ. 16154 · 1978-12-21
- Rooney v. Vermont Investment Corp. L.A. 30088 · 1973-11-02
- Lawler v. Bannerman Civ. 33571 · 1970-06-17
- Thorson v. Western Development Corp. Civ. 8052 · 1967-05-19
- Turner v. Donovan Civ. No. 12921 · 1942-05-25
- Reed v. Murphy Docket No. L.A. 8251. · 1925-07-14
- Mecham v. McKay · 1869-07-01
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