California Federal Savings & Loan Ass'n v. Superior Court

This is a class action lawsuit against California Federal Savings and Loan Association (Cal Fed) in which the plaintiffs contend, among other things, that Cal Fed’s method of computing the “interest rate adjustment” on variable interest rate loans is designed to yield consistent interest rate increases, but almost never a decrease. The issue in this original proceeding is whether Cal Fed’s peremptory challenge (Code Civ. Proc., § 170.6) of the Honorable Norman Dowds was timely filed. We hold that it was not.

This action was filed in September 1984. In late 1985, Cal Fed filed a motion for summary adjudication of issues (Code Civ. Proc., § 437c, subd. (f)). One of the crucial issues in the case, and one of the issues which Cal Fed sought to have adjudicated, involved an interpretation of the promissory note which Cal Fed utilized for variable interest rate loans. Judge Dowds resolved this issue in favor of Cal Fed.

In May 1986, plaintiffs initiated proceedings to have the action certified as a class action. Plaintiffs’ “Motion for Class Certification” was met with a number of evidentiary and other objections by Cal Fed. Plaintiffs filed an equally weighty response to the…