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HARVEY MACHINE CO., INC. (a Corporation), Appellant, v. LUCY ALVAREZ et al., Respondents.

McCOMB, J.

From a judgment in favor of defendants predicated upon the sustaining of their demurrer to a complaint for declaratory relief, plaintiff appeals.

It is to be noted that defendants have not favored this court with either a brief or oral argument.

The undisputed facts are these:

It was alleged in the complaint that plaintiff and defendants had entered into a written contract commonly known as a collective bargaining agreement and that a dispute had arisen between the parties as to the interpretation of certain provisions in such agreement. The agreement was made a part of the complaint and attached thereto. In the agreement were appropriate clauses providing for arbitration of disputes between the parties arising under the contract. Plaintiff prayed that the court declare its rights, duties and obligations under the terms of the written agreement.

Omitting the title of the court and cause the complaint read as follows:
"Comes now the plaintiff and for cause of action against the defendants and each of them allege:


Defendants demurred to the complaint on the grounds that (1) it failed to state a cause of action, and (2) the court had no jurisdiction of the subject matter of the action because the agreement contained a clause providing for arbitration of any grievance or dispute arising under the terms of the agreement and that plaintiff had not alleged that it had exhausted its remedy under the arbitration clause in the contract. The demurrer was sustained.

There are two questions necessary for us to determine which will be stated and answered hereunder seriatim:

[1] First: Did the complaint state a cause of action?

This question must be answered in the affirmative. The law is established in California that a complaint for declaratory relief is legally sufficient if it sets forth facts showing the existence of an actual controversy relating to the legal rights and duties of the respective parties under a written contract and requests that these rights and duties be adjudicated by the court. ( Columbia Pictures Corp. v. DeToth, 26 Cal.2d 753, 760 [ 161 P.2d 217, 162 A.L.R. 747].) In the instant case the complaint met each of the foregoing requirements.

[2] Second: Was it a condition precedent to plaintiff's right to maintain an action for declaratory relief that it allege compliance or an attempt by it to comply with the arbitration clause set forth in the contract?

This question must be answered in the negative. Declaratory relief is a proper remedy to ascertain whether any particular grievance arising under a written contract is properly subject to arbitration under an arbitration clause in an agreement. ( Texoma Nat. Cas. Co. v. Oil Workers, 58 F. Supp. 132, 134 et seq. (affirmed in 146 F.2d 62; certiorari denied by the U.S. Supreme Court, 324 U.S. 872, 67 S.Ct. 1017, 89 L.Ed. 1426).)

In view of the foregoing rule it was unnecessary for plaintiff to allege in its complaint compliance or an attempt to comply with the terms of the arbitration clause in the contract prior to instituting the instant suit.

For the foregoing reasons the judgment is reversed with directions to the trial court to overrule defendants' demurrer and to allow them a reasonable time within which to answer plaintiff's complaint if they be so advised.

Moore, P.J., and Wilson, J., concurred.

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HARVEY MACHINE CO., INC. v. ALVAREZ
(Oct 9, 1946)