Kittredge Sports Co. v. Superior Court

Opinion

SONENSHINE, J.

Kittredge Sports Company (Kittredge) petitions for relief after the superior court denied its motion to amend the complaint. We conclude the trial court abused its discretion and grant the relief sought.

[1047]

I

Kittredge rented skis to Maureen Rush, who injured her knee when the bindings failed to release. In April 1985 she filed a personal injury lawsuit against Kittredge for negligence and products liability.

Kittredge tendered its defense to the manufacturer of the bindings, Marker, U.S.A. (Marker) based on a retail agreement providing express indemnification for products liability. Marker refused to defend the retailer, and in February 1986 Kittredge responded by filing this independent action against Marker for breach of its agreement. Kittredge settled with Rush in November 1988.

In March 1989 Kittredge sought to amend the complaint to add causes of action for breach of the covenant of good faith and fair dealing and tortious denial of the existence of the contract. The trial court denied Kittredge’s motion, and this writ petition followed.

II

The trial court has discretion to allow amendments to the pleadings “in the furtherance of justice.” (Code Civ. Proc., § 473.) This discretion should be exercised liberally in favor of amendments, for judicial policy favors resolution of all disputed matters in the same lawsuit. (See

Nestle

v.

Santa Monica

(1972) 6 Cal.3d 920, 939 [101 Cal.Rptr. 568, 496 P.2d 480].) Marker acknowledges this general principle but argues the court’s ruling was proper because the law does not recognize a cause of action in tort for the mere denial of liability under the contract. It also contends no action for breach of the implied covenant of good faith and fair dealing lies under these circumstances.

Marker misses the point. Our Supreme Court in