H. D. Arnaiz Ltd. v. County of San Joaquin

County of San Joaquin appeals from the order granting H. D. Arnaiz, Ltd.’s motion to vacate its voluntary dismissal of an action against the County of San Joaquin (County). Arnaiz moves to dismiss the appeal on the grounds that the County accepted the benefit of the judgment; the order is not appealable; and the appeal is untimely. We conclude an order granting a motion to vacate a voluntary dismissal is not an appealable order, but will treat the appeal as a petition for a writ of mandate. We find the trial court did not abuse its discretion in vacating the voluntary dismissal and deny the writ.

Factual and Procedural Background

In 1994, Arnaiz entered into an option to lease certain property near the Stockton airport from the County. Before exercising the option, Arnaiz sued the County for breach of its obligations under the contract. Arnaiz then exercised the option and began negotiating for development of the property. The litigation interfered with negotiations. On June 18, 1999, Arnaiz’s request for dismissal of the lawsuit without prejudice was filed.

On June 21, 1999, the County sent Arnaiz notice that the lease was terminated. The notice recited the following.…

In a letter to Dan DeAngelis, manager of the Stockton Metropolitan Airport, dated July 19, 1999, the attorney for H. D. Arnaiz, Ltd. (Arnaiz), refers to Amaiz’s communications with DeAngelis and to Arnaiz’s preliminary application for a building permit—both of which occurred after the date Arnaiz was notified of the unavailability of public funding—as reasons why the County of San Joaquin (County) should have known of Arnaiz’s intention to proceed with the lease. In addition, H. D. Arnaiz declares he spoke to a county employee in June 1999 about costs of permits for the development *1370 and that, although on a date not specified, DeAngelis “expressed a willingness to continue . . .” with the project and, referring to the then pending litigation, said that they should “let bygones be bygones.”

If Arnaiz had chosen to dismiss its lawsuit based on a false hope that the dismissal would aid the project by improving Arnaiz’s relations with the County, I would vote to grant the petition. A litigant’s unilateral decision to dismiss a lawsuit solely with the thought that a dismissal will improve the litigant’s relations with his adversary, or others, is not the kind of mistake that, in…

County of San Joaquin appeals from the order granting H.D. Arnaiz, Ltd.'s motion to vacate its voluntary dismissal of an action against the County of San Joaquin (County). Arnaiz moves to dismiss the appeal on the grounds that the County accepted the benefit of the judgment; the order is not appealable; and the appeal is untimely. We conclude an order granting a motion to vacate a voluntary dismissal is not an appealable order, but will treat the appeal as a petition for a writ of mandate. We find the trial court did not abuse its discretion in vacating the voluntary dismissal and deny the writ.

In 1994, Arnaiz entered into an option to lease certain property near the Stockton airport from the County. Before exercising the option, Arnaiz sued the County for breach of its obligations under the contract. Arnaiz then exercised the option and began negotiating for development of the property. The litigation interfered with negotiations. On June 18, 1999, Arnaiz's request for dismissal of the lawsuit without prejudice was filed.

On June 21, 1999, the County sent Arnaiz notice that the lease was terminated. The notice recited the following. The County had previously sent…