Miller v. American Honda Motor Co.

In this case we examine the right to recover costs on a cross-complaint for comparative equitable indemnity. As its name suggests, such an action is equitable in nature and, as is the case with all equitable actions, costs are not recoverable as a matter of right but “may be allowed or not . . . in the discretion of the court.” (Code Civ. Proc., § 1032, subd. (c).) Because we conclude that the trial court did not abuse its discretion in denying costs, we shall affirm the judgment below.

Factual and Procedural Background

Hank Miller, doing business as Sierra Cycle and Chain Saw, sold a motorcycle to Juan Roberto Guzman. When Guzman failed to make the agreed payments for the motorcycle, Miller sued him in the justice court for the unpaid balance. The pace of the litigation then escalated. Guzman filed a cross-complaint against Miller for personal injuries alleged to have been caused by a defective condition of the motorcycle. The matter was transferred to the superior court. (See Code Civ. Proc., § 396.)

In his cross-complaint Guzman also sued the distributor of the motorcycle as a cross-defendant. Apparently unaware of its correct corporate name, Guzman misnamed the…