Aetna Casualty & Surety Co. v. Humboldt Loaders, Inc.

Prior to commencement of trial, appellant Aetna Casualty & Surety Company (Aetna) attempted to dismiss its complaint for declaratory relief against respondents Humboldt Loaders, Inc., its owners Barbara Knapp and Gary Blanks and others who claimed coverage under Aetna’s comprehensive general liability insurance contract with Humboldt. The court refused to allow the filing of the request for dismissal and a trial on the merits ensued, resulting in judgment against Aetna. Appellant Bolling, Walter & Gawthrop (Bolling) was the law firm representing Aetna in the declaratory relief action. After the trial the court imposed sanctions against Bolling for attempting to file the request for dismissal. Although a number of other issues are raised on appeal, we conclude that Aetna had the absolute right to dismiss under former Code of Civil Procedure section 581, subdivision l. We therefore reverse both the judgment and the award of sanctions.

Background

In the predawn hours of June 29, 1982, a fire destroyed a warehouse located on a 14-acre parcel in Humboldt County. Title to the real property was held by G. E. Anderson and Jacqueline Anderson, doing business as Andersonia Forest…