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Lane v. Newport Building Corp.

Citations: 176 Cal. App. 3d 870; 222 Cal. Rptr. 443; 1986 Cal. App. LEXIS 2487Docket: B009220

Court: California Court of Appeal; January 21, 1986; California; State Appellate Court

Narrative Opinion Summary

In this case, the appellants, Frank and Yvonne Lane, sought to overturn the dismissal of their lawsuit against Newport Building Corporation and Roland Land Company, which was dismissed under California Code of Civil Procedure section 583(b) for not being brought to trial within five years. The appellants argued that the dismissal was erroneous due to the bankruptcy of a co-defendant, Raymond Scott Engineering Company, which they claimed made it impractical to proceed to trial. The trial court dismissed the case, finding that the appellants did not establish clear and convincing evidence of 'impossibility, impracticality, and futility' under sections 583.310, 583.340, and 583.360. The appellate court affirmed this decision, noting the appellants' failure to formally address the bankruptcy's impact on the proceedings and their lack of action to protect their rights, such as seeking a stay or severing claims against the bankrupt defendant. The court emphasized that the onus was on the plaintiffs to manage trial scheduling within statutory limits, and the court's role was not to verify date calculations. The dismissal was upheld, and further petitions for rehearing and review were denied, with the relevant section 583 now repealed and replaced by new statutes.

Legal Issues Addressed

Court's Role in Trial Date Management

Application: The court is not responsible for verifying the accuracy of the plaintiff's date calculations; it is the plaintiff's duty to ensure trial dates are set within statutory limits.

Reasoning: The plaintiff must inform the court of the need to set a trial within the timeframe established by section 583. If the plaintiff fails to act in time, even citing reliance on an official duty, relief will not be granted.

Exceptions to Mandatory Dismissal - Impossibility, Impracticality, and Futility

Application: The appellants failed to prove by clear and convincing evidence that the bankruptcy of a co-defendant made it impossible, impractical, or futile to bring the case to trial within the statutory period.

Reasoning: The appellate court affirmed the dismissal, concluding that the trial court acted correctly. Appellants argue that the trial court erred in dismissing their case, claiming they exercised reasonable diligence in prosecution, which should exempt them from the five-year mandatory dismissal statute due to 'impossibility, impracticality, and futility.'

Mandatory Dismissal Under California Code of Civil Procedure Section 583(b)

Application: The case was dismissed because it was not brought to trial within five years of filing, as mandated by the statute.

Reasoning: Frank and Yvonne Lane (appellants) appealed the dismissal of their lawsuit against Newport Building Corporation and Roland Land Company (respondents) for injunction, damages, and inverse condemnation under California Code of Civil Procedure section 583(b), which mandates dismissal of cases not brought to trial within five years of filing.

Plaintiff's Responsibility to Address Bankruptcy Stay

Application: The Lanes' counsel was found negligent for not formally addressing the bankruptcy's impact on the trial schedule, failing to protect their clients' rights.

Reasoning: Appellants' claim of diligence is undermined by their counsel's failure to formally address the implications of the bankruptcy during a mandatory settlement conference.