Nott v. Superior Court

204 Cal. App. 3d 1102, 251 Cal. Rptr. 842, 1988 Cal. App. LEXIS 899
CourtCalifornia Court of Appeal
DecidedSeptember 30, 1988
DocketNo. C003754
StatusPublished
Cited by6 cases

This text of 204 Cal. App. 3d 1102 (Nott v. Superior Court) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nott v. Superior Court, 204 Cal. App. 3d 1102, 251 Cal. Rptr. 842, 1988 Cal. App. LEXIS 899 (Cal. Ct. App. 1988).

Opinion

Opinion

BLEASE, Acting P. J.

In this writ proceeding we hold that an arbitration hearing is not a “trial,” as that term is used in Code of Civil Procedure section 998, subdivision (b)(3),1 and accordingly conclude that the commencement of the hearing does not terminate an offer to enter a compromise judgment in a civil action. We will issue a peremptory writ directing the respondent court to enter judgment in favor of petitioner, Mary Nott, predicated upon her timely acceptance of an offer from real party in interest Sugar Bowl Corporation (Sugar Bowl).

Facts and Procedural Background

Nott commenced the underlying action against Sugar Bowl and Scott Harms alleging that she sustained injuries in a skiing accident when struck by Harms at a facility owned and operated by Sugar Bowl. On August 10, 1987, the case was scheduled for judicial arbitration to be held September 16. On August 31, Sugar Bowl served Nott with a written offer to settle the case for $3,501, pursuant to section 998. The matter proceeded to an arbitration hearing. Before the announcement of the arbitrator’s decision, Nott served and filed an acceptance of the Sugar Bowl offer. The acceptance was mailed to Sugar Bowl on September 25 and filed with the court on September 28.

On October 7, 1987, the arbitrator awarded Nott $24,950 damages against Harms but found Sugar Bowl not to be negligent. Harms rejected [1105]*1105the award but served an offer to compromise on Nott which she accepted. He was dismissed from the action. Then Nott moved for entry of judgment against Sugar Bowl predicated upon the acceptance of its offer. Sugar Bowl opposed the motion, claiming that the offer was either terminated as a matter of law when the arbitration hearing commenced or that statements made at the arbitration hearing constituted a rejection of its offer.

This petition followed a denial of Nott’s motion.

Discussion

I

Section 998 provides a means by which the parties to a civil action may agree to a compromise judgment. The agreement is initiated by an offer in writing. Subdivision (b)(2), upon which Sugar Bowl relies, provides that “[i]f the offer is not accepted prior to trial or within 30 days after it is made, whichever occurs first, it shall be deemed withdrawn . . . .” (Italics added.)2 Sugar Bowl argues that the policy of section 998, to encourage the settlement of litigation without trial, would be advanced if an arbitration hearing were viewed as a “trial” for purposes of termination of the offer. This generalized appeal to policy encompasses two different claims. First, the policy provides a purpose which justifies the judicial construction of “trial” as inclusive of a judicial arbitration. Alternatively, the policy justifies the creation of an analogous rule of common law. Neither claim has merit.

[1106]*1106A.

In the first case the policy is advanced as a justification for the judicial construction of the statutory language. The language, however, must bear the meaning thus ascribed. “[T]he meaning of language is to be found in its usage and the occasion of a usage is an application of the language to particular circumstances. [Citations].” (National Auto & Cas. Ins. Co. v. Contreras (1987) 193 Cal.App.3d 831, 836 [238 Cal.Rptr. 627].) If the statutory language does not lend itself to the claimed application, the policy may not be used to rewrite the statute. (See Code Civ. Proc., § 1858.) Accordingly, a statutory policy may be employed only if it aids in the resolution of an uncertainty whether the language applies as claimed. (See REA Enterprises v. California Coastal Zone Conservation Com. (1975) 52 Cal.App.3d 596, 610 [125 Cal.Rptr. 201] and cases cited therein.) To employ a statutory policy in any other fashion leads to the circumstance assayed in the next subsection of this opinion.

The term “trial” cannot be read to bear the proffered meaning. (Cf. Woodard v. Southern Cal. Permanente Medical Group (1985) 171 Cal.App.3d 656, 665-666 [217 Cal.Rptr. 514].) Section 998 was enacted before the advent of the judicial arbitration statutes (Stats. 1971, ch. 1679, and Stats. 1975, ch. 1006), and hence the Legislature could not have then contemplated that “trial” includes an arbitration hearing. Section 998 is part of the general provisions of the Code of Civil Procedure, which govern the commencement, pleading, procedure and trial of civil actions. (Part 2, §§ 307 to 1060.) It employs the term “trial” within that context. The subdivision ((b)(3)), which governs the commencement of a “trial” for purposes of acceptance of a 998 offer, tracks the language of section 581, the dismissal statute applicable to civil actions. That provision invests a court in specified circumstances with authority to dismiss a civil action before the advent of a judicial proceeding at which a “final disposition is to be made . . . .” (Berri v. Superior Court (1955) 43 Cal.2d 856, 859-860 [279 P.2d 8], italics added; see also 7 Witkin, Cal. Procedure (3d ed. 1985) § 1, pp. 18-19; cf. § 998, subd. (b)(3) with § 581, subd. (a)(6).) Indeed, until 1986 section 998 simply measured “commencement of the trial as defined in . . . section 581 . . . .” (Stats. 1977, ch. 458.) The companion section 583 similarly applies to the dismissal of civil actions. For the same reasons advanced here, it has been held that judicial arbitration hearing is not a trial for purposes of its invocation.. (See Brown v. Engstrom (1979) 89 Cal.App.3d 513, 518-520 [152 Cal.Rptr. 628].)

Judicial arbitration is classified as a special proceeding. (Part 3, ch. 2.5, §§ 1141.10 to 1141.32.) Although special proceedings involving a court or jury are subject to section 581, subdivision (a)(1), a judicial arbitration [1107]*1107proceeding is not such. Nor does it meet the test of finality. A judicial arbitration hearing does not result in a judgment but in an arbitration award. (§ 1141.20.) It does not finally resolve any issue of fact or law in the case. A party may freely set aside an arbitration award by a timely request for a “de novo trial, by court or jury, both as to law and facts.” (§ 1141.20, subd. (b).)

B.

That brings us to the only other way in which the policy of section 998 might be employed to the end sought by Sugar Bowl; it sanctions the minting of a common law rule terminating a section 998 offer at the commencement of a judicial arbitration hearing. Sugar Bowl urges that such a rule is in harmony with the evident policy of section 998. It reasons that the policy of section 998 is to induce the offeree to accept a reasonable offer to avoid incurring the incremental expenses of a judicial hearing on the merits. (Cf. Woodard v. Southern Cal. Permanente Medical Group, supra, 171 Cal.App.3d at pp. 665-666.) Therefore, an analogous inducement should be fashioned to defer incurring the lesser but analogous expenses of a judicial arbitration hearing. We are thus asked to embellish the statute by a rule of our making. “When a judicial rule is thus modelled after a statutory rule, the very fact of copying signifies that it is not to be confused with interpretation that clarifies an obscure statute or amplifies a skeletal one. Such a judicial rule takes on a life of its own in the common law.” (Traynor, Statutes Revolving in Common-Law Orbits

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Bluebook (online)
204 Cal. App. 3d 1102, 251 Cal. Rptr. 842, 1988 Cal. App. LEXIS 899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nott-v-superior-court-calctapp-1988.