Frank

Statement of the Case

This is an appeal from a judgment against defendants/appellants on a promissory note following trial to the court. Judgment was entered on April 20, 1988, for $30,000 plus interest of $10,200, and notice of appeal was timely filed on June 20, 1988.

The sole issue presented for review is whether the trial court erred in denying appellants’ motion to file a compulsory cross-complaint. Appellants contend that the trial court, under Code of Civil Procedure section 426.50, is mandated to grant such a motion unless there is a strong showing of bad faith. Respondents take the position that the trial court has discretion to grant or deny such a request, and that the court’s denial is particularly supportable where such motion is made on the eve of trial.

We conclude the trial court committed error in denying appellants’ motion to file the compulsory cross-complaint because there was no substantial evidence to support a finding that appellants were acting in bad faith. Consequently, we reverse the judgment.

Statement of Facts

On October 20, 1987, respondents filed their action to recover on a note. Appellants filed answers in propria persona in late…