Frank E. Beckett Co. v. Bobbitt

In Frank E. Beckett Co. v. Bobbitt (1960) 180 Cal.App.2d Supp. 921, the plaintiff's attorney orally granted the defendant's attorney an extension of time to answer the complaint. The defendant's attorney sent a confirming letter. Nevertheless, while the oral extension was still in effect, the plaintiff's attorney obtained a default judgment. (Id. at p. Supp. 923.) The trial court denied the defendant's motion to vacate the default judgment under section 473. (Frank E. Beckett Co., at p. Supp. 924.) The appellate court held that this was an abuse of discretion. (Frank E. Beckett Co. v. Bobbitt, supra, 180 Cal.App.2d at pp. Supp. 927-928.) It acknowledged that "section 283, Code of Civil Procedure, provides, that stipulations between attorneys must either (a) be in writing filed with the clerk, or (b) be entered on the minutes of the court. It is commonly known, however, that notwithstanding this section, it is a matter of common practice among attorneys to honor oral stipulations relating to actions pending in our courts. Certainly, it is not the purpose of the section to encourage a disrespect for such oral stipulations. Its underlying purpose is to avoid misunderstandings which may arise where there is a dispute as to the precise meaning of such oral stipulations. This court ... is not divested, in a case of the character here involved, of its broad discretionary power to relieve a party from a default which he suffered in reliance on an oral stipulation with his adversary." (Id. at p. Supp. 924.) The court concluded that the defendant's counsel was justified in relying on the oral agreement: "Having acquiesced in and accepted the oral stipulation, the plaintiff was thereafter bound to honor that stipulation to the fullest degree, and plaintiff's attorney could not, in good conscience ... , enter judgment by default. His act in so doing constituted a violation of his agreement and furnishes ample grounds for vacating the default judgment entered by him." (Frank E. Beckett Co. v. Bobbitt, supra, 180 Cal.App.2d at p. Supp. 925.)