KJC

In this writ proceeding, we consider (A) whether a cross-defendant is entitled to transfer a civil action to a neutral county pursuant to Code of Civil Procedure section 394, subdivision (a); (B) if so, whether the cross-defendant’s business presence in the forum county disqualifies it from transferring the case; and (C) assuming that the cross-complaint must be transferred to a neutral county, whether the underlying complaint should also be transferred.

The underlying complaint, brought in Contra Costa County by 43 residents of the City of Richmond (Richmond), seeks to recoup damages from Richmond for losses the residents allegedly suffered when their neighborhood was flooded during the winters of 1995, 1997, and 1998. The residents allege that Richmond’s faulty storm drainage and flood control systems caused the flooding.

After the underlying action had been pending for almost two years, Richmond filed a cross-complaint against petitioner Kennedy/Jenks Consultants, Inc. (KJC), alleging causes of action for indemnification, apportionment of fault, and declaratory relief. The cross-claims arise from a 1995 contract under which KJC provided consulting services regarding…