Osseous Technologies of America, Inc. v. DiscoveryOrtho Partners LLC

Faced with accusations it was breaching a services agreement by failing to pay what it allegedly owed for services rendered, Osseous Technologies of America, Inc. (Osseous), sued for declaratory relief (Code Civ. Proc., § 1060) 1 rather than waiting for a breach of contract action to be filed against it. Defendant DiscoveryOrtho Partners LLC (DiscoveryOrtho) demurred to the complaint on the grounds the trial court should exercise its discretion under section 1061 to “refuse to exercise the power” to decide declaratory relief actions. In sustaining the demurrer, the court reasoned declaratory relief would not be “necessary or proper at the time under all the circumstances” (§ 1061) because the facts as pleaded amounted to a breach of contract dispute (looking to past conduct) rather than a forward-looking pronouncement of the rights and duties of the parties. The court did not abuse its discretion by sustaining the demurrer without leave to amend and entering judgment accordingly.

FACTS

“On appeal from a judgment dismissing an action after sustaining a demurrer without leave to amend . . . [w]e give the complaint a reasonable interpretation, reading it as a whole and its…