Pomona Federal Plaza, Ltd. v. Investment Concepts, Inc.

In this opinion we find that the trial court abused its discretion in dismissing plaintiffs’ action. Plaintiffs alleged that defendants did not build a parking lot to specifications. Plaintiffs, who could have proceeded immediately on the issue of liability, acted reasonably in allowing defendants sufficient time to prepare the cross-actions for trial.

Facts

Plaintiffs Pomona Federal Plaza, Ltd., and Colima Investment Company, Ltd., filed a complaint on June 14, 1982. Plaintiffs alleged that the parking lot which they purchased from defendants Investment Concepts, Inc. (Investment) and Ceeco Development Corporation (Ceeco), which was constructed by defendant Universal Asphalt Co., Inc. (Universal) was improperly designed and constructed. Plaintiffs purchased the property approximately six years earlier.

All three defendants filed cross-complaints. In addition, cross-actions were filed against Haugaard Elrod Associates, Robert D. Haugaard, Jr., and James H. Elrod (architects) and Richard Mills and Associates, Inc. (subcontractors).

Plaintiffs’ action became at issue on July 21, 1983, at which time all named parties had answered the complaint. However, the cross-actions…