Legal Question in Business Law in California

Re: What exactly is a decision on the merits?

A judge who decides an issue 'on the merits' is supposed to weigh the evidence on each side - remember the scales of justice? and according to each party's burden of proof (by a 'preponderance of the evidence', by 'clear and convincing evidence', or 'beyond a reasonable doubt'.)

This is in contrast to decisions not on the merits, for example a default situation where one side doesn't show up.

Re: What exactly is a decision on the merits?

Good question. California does not seem to have a definition written in to any code, but here's what it seems to be:

A lawsuit or a cause of action in a lawsuit, or maybe even a single disputed issue within a case or cause of action, is decided on its merits when the judge (or other officer empowered to rule) decides the matter and issues a ruling. If the issue is an issue of fact, or mixed issue of fact and law, the ruling must be after taking evidence and hearing argument form both sides. If the contolling issue is purely a matter of law, it is probably unnecessary for the judge (or jury) to hear testimony or receive evidence.

Examples of rulings that may dispose of a case (at least temporarily) which are NOT decisions on the merits would include a finding that the court lacked jurisdiction, a default judgment, and in many cases, when a plaintiff voluntarily dismisses the action.

Outcomes that would be considered on the merits would include entry of judgment after a verdict, judgment after a bench trial, summary judgment, and in some instances, a judgment entered after a general demurrer is sustained.

Re: What exactly is a decision on the merits?

A decision on the merits is one in which the court evaluates the claims of the party seeking relief. Decisions which are not made on the merits are instead made on procedural grounds.

For example, if A sues B for negligence and loses because the judge finds that B wasn't negligent, that's a decision on the merits. If A loses instead because he waited too long and his case was barred by the statute of limitations, the decision would not be on the merits.