Government Claim Not Required for Declaratory Relief Action

The Sixth Appellate District reversed a judgment. The court held that an action against a public entity for declaratory relief only is not a claim for money or damages so as to trigger the Government Claims Act's claim presentation requirement.

The City of Monterey contracted with Stronghold Engineering Incorporated to renovate the city's conference center and adjacent plaza. A dispute arose as to which of them was financially responsible for unforeseen delays in the renovation. Stronghold filed suit seeking a declaration of its rights and duties under the parties' contract and a change order. Stronghold sought a declaration that the city would be responsible for any additional expenses.

The trial court granted summary judgment for the city, finding that Stronghold's failure to present a claim before initially filing suit doomed its complaint.

The court of appeal reversed, holding that because the initial action sought declaratory relief only, Stronghold was not required to file a claim with the city before bringing suit. Government Code §945.4 requires that "all claims for money or damages" against public entities be presented to the responsible public entity before a lawsuit is filed. Here, Stronghold's complaint sought declaratory relief only. Because it did not seek money or damages, §945.4 did not apply.

In the event that Stronghold obtains a ruling in its favor and later sues the city to recover its additional expenses, it would first have to present the city with a written claim under §945.4. At this stage of the proceedings, however, no such claim is required.

Stronghold Engineering Incorporated v. City of Monterey.