Justia California Court of Appeals Opinion Summaries

The Foxes filed suit against 18 defendants in February 2017, claiming that Ms. Fox, age 81, sustained personal injuries as a result of her exposure to asbestos and asbestos-containing products, from approximately 1954-1963. Out of concern for Ms. Fox’s declining health, the Foxes moved for trial preference under Code of Civil Procedure 36(a). Ms. Fox now suffers from stage IV lung cancer, metastasized to her femur, clavicle, and spine, and from asbestosis, asbestos-related pleural disease, severe coronary artery disease, and anemia. She receives chemotherapy treatments every three weeks and is in partial remission but the side effects have been severe. Her attorney stated: “[f]or [Ms. Fox] to effectively participate and assist in her trial, so that her interests will not be prejudiced, it is imperative that the trial be held as soon as possible.” The Foxes submitted medical records confirming Ms. Fox’s medical diagnoses. Only two of 18 defendants opposed the Foxes’ motion and did not offer substantive argument. The trial court denied the motion. The court of appeal directed the superior court to schedule a trial within 120 days. On this record, the absence of more specifics about Ms. Fox’s prognosis was insufficient reason to deny the request for calendar preference. View "Fox v. Superior Court" on Justia Law

At issue in this case was whether plaintiff West Coast Air Conditioning Company, Inc. (West Coast) was entitled to recover under a promissory estoppel theory its bid preparation costs in the stipulated amount of $250,000, after it successfully challenged the award of a public works contract by the California Department of Corrections and Rehabilitation (CDCR) to real party in interest Hensel Phelps Construction Co. (HP). The court found HP's bid to update the Ironwood State Prison Heating, Ventilation and Air Conditioning System illegal and nonresponsive as a matter of law. As a result, the court granted West Coast's request for a permanent injunction, preventing HP from performing any additional work on the subject project. HP had only performed about 8 percent of the contract when the injunction issued, and although West Coast ultimately proved it was the lowest responsible bidder when granting the injunction, the court refused to command CDCR to award West Coast the contract for the subject project, despite the court's finding in a previous order that West Coast should have been awarded the contract. The Court of Appeals concluded the trial court properly exercised its authority in awarding West Coast its bid preparation costs of $250,000. The Court rejected CDCR's argument that West Coast, as a matter of law, was not entitled to recover such costs because West Coast's bid allegedly was nonresponsive and because West Coast had obtained a permanent injunction without any additional relief. View "West Coast Air Conditioning Co. v. Cal. Dept. of Corr. & Rehab." on Justia Law

Quanta, a Taiwanese company, entered into a contract to manufacture and sell cellular telephones to Japan Communications, a Japanese company. The Court of Appeals held that the trial court did not abuse its discretion in finding that suitable alternative forums exist and that California had no public interest in burdening its courts with an action lacking any identifiable connection to the state. In this case, the parties negotiated a forum selection clause mandating that any dispute be resolved in a California court under California law, but nothing in the creation, performance, or alleged breach of the contract had any connection to California. View "Quanta Computer Inc. v. Japan Communications Inc." on Justia Law

The Legislature exempted a government claim to a local public entity on a childhood sexual abuse action from the claim presentation requirement of the Government Claims Act, but permitted local public entities to impose their own claim presentation requirements. The Court of Appeal granted a writ of mandate directing the trial court to vacate its order overruling petitioners' demurrers to Jane Doe's first amended complaint, and to enter a new order sustaining their demurrers. The demurrers were based on Doe's failure to present a government claim to petitioner school district before commencing her judicial action against petitioners. In this case, Doe failed to allege timely compliance with the district's claim presentation requirement, or an excuse for failure to comply. Therefore, the court held that petitioners' demurrers to the first amended complaint should have been sustained. View "Big Oak Flat-Groveland Unified School District v. Superior Court" on Justia Law

In 2003, after a lengthy period of employment as a firefighter with the United States Forest Service, George Corley accepted a position with the San Bernardino County Fire Protection District as a battalion chief. Corley was promoted to the rank of division chief in 2005. In May 2011, the County of San Bernardino's Chief Executive Officer, Greg Devereaux, appointed Mark Hartwig as Fire Chief for the District. Chief Hartwig terminated Corley's employment with the District in February 2012. At the time of his discharge, Corley was 58 years old, and was the oldest of the District's six division chiefs. Corley filed this action against the District. A jury trial was held on a single cause of action for age discrimination under the Fair Employment and Housing Act (Gov. Code, section 12900 et seq.). The jury rendered a special verdict in which it found that Corley's age was a substantial motivating reason for the District's termination of his employment and awarded damages for lost earnings. On appeal, the District contended the trial court erred in denying its request to instruct the jury pursuant to a provision in the Firefighters' Procedural Bill of Rights (section 3254 (c)). The District also claimed the trial court erred in instructing the jury that "the use of salary as the basis for differentiating between employees when terminating employment may be a factor used to constitute age discrimination" if the employer's termination policy adversely affected older workers. The District further contended there was insufficient evidence to support the jury's award of damages based on its implicit finding that Corley would have been promoted but for the District's discrimination. Furthermore, the District claimed the trial court abused its discretion in applying a multiplier in awarding Corley statutory attorney fees. In the published portion of its opinion, the Court of Appeal interpreted section 3254 (c) and concluded the trial court did not err in refusing to instruct the jury pursuant to this provision. In unpublished portions of the discussion, the Court concluded the District failed to establish any reversible error with respect to its remaining claims. View "Corley v. San Bernardino County Fire Protection Dist." on Justia Law

At issue in this appeal was whether a mortgage servicer could be considered a "debt collector" under California's Rosenthal Fair Debt Collection Practices Act (the Rosenthal Act; Civ. Code,1 sec. 1788 et seq.). There was a split of authority among the many federal district courts that have considered the issue, and there was “a paucity of California authority addressing the question.” In this case, plaintiff Edward Davidson brought a putative class action against Seterus and its parent company, International Business Machines, Inc. (IBM), alleging that the defendants violated the Act and the Unfair Competition Law (UCL). The defendants demurred to Davidson's complaint, arguing that neither of them was a " 'debt collector' " who engages in " 'debt collection' " under the Act. The trial court sustained the defendants' demurrer, concluding that the defendants "are not 'debt collectors' because servicing a mortgage is not a form of collecting 'consumer debts.' " On appeal, Davidson contended the trial court erred in determining that mortgage servicers were not "debt collectors" under the Rosenthal Act. The Court of Appeal ultimately agreed with Davidson's contention, in no small part due to the Court’s adherence to "the general rule that civil statutes for the protection of the public are, generally, broadly construed in favor of that protective purpose." The Court therefore reversed the trial court and remanded this case for further proceedings. View "Davidson v. Seterus, Inc." on Justia Law

Plaintiffs and appellants Antonio and Imelda Aranda and their son-in-law, Heriberto Ponce, (together, Ponce and Aranda) appeal from the trial court’s entry of a judgment of dismissal following an order imposing both terminating and monetary sanctions against them and their attorneys under Code of Civil Procedure section 128.7. 1 The trial court found that Ponce and Aranda’s complaint was presented primarily for an improper purpose, such as to harass, cause unnecessary delay, or needlessly increase the cost of litigation. Ponce and Aranda received a permanent loan modification under the Home Affordable Modification Program (HAMP). Ultimately they defaulted on the loan when the error-filled modification agreement called for higher payments they could not afford. Wells Fargo transferred the note and deed of trust to Consumer Solutions 3, LLC in November 2010. Defendant and respondent Specialized Loan Services, LLC (Specialized) serviced the loan on behalf of Consumer Solutions. In the meantime, Ponce and Aranda were still trying to work things out with Wells Fargo. One Wells Fargo representative told Ponce’s wife, Alma, that they should not make further payments until the mistakes were corrected. Other representatives called Ponce demanding payment. Wells Fargo refused to accept any reduced payment, and ultimately invited Ponce and Aranda to apply for another loan modification. Specialized recorded a notice of trustee’s sale in December 2010, while Ponce and Aranda’s second application was pending. A Wells Fargo representative told Ponce “not to worry about the notice because the trustee sale was scheduled by mistake.” Over the next several weeks, other Wells Fargo representatives reassured Ponce and Aranda that the property would not be sold because they had been approved for a loan modification. Despite these assurances, a trustee’s sale was held on January 18, 2011, at which Residential Investments LLC acquired title to the property. Residential Investments filed a complaint in unlawful detainer against plaintiffs. The trial court found that Ponce and Aranda’s complaint responding to Residential Investments’ was presented primarily for an improper purpose, such as to harass, cause unnecessary delay, or needlessly increase the cost of litigation. On appeal, Ponce and Aranda argued the claims asserted in their complaint were not frivolous and therefore, could not have been asserted for an improper purpose. The Court of Appeal agreed, and reversed the trial court’s entry of judgment based on terminating sanctions against Ponce and Aranda and entry of monetary sanctions against Ponce and Aranda and their attorneys. View "Ponce v. Wells Fargo Bank" on Justia Law

Plaintiffs MMM Holdings, Inc. (MMM), and MSO of Puerto Rico, Inc. (MSO), sued defendant Marc Reich, the attorney who represented their adversary in a whistleblower qui tam action filed against plaintiffs federal district court. Plaintiffs alleged claim and delivery, conversion, civil theft, unjust enrichment, and unfair competition, and contended Reich received, wrongfully possessed, and refused to turn over, some 26,000 electronically stored documents his client, Jose “Josh” Valdez, took with him in 2010 when he was terminated by MSO for his allegedly “vocal opposition to what he perceived as Plaintiffs’ fraudulent practices.” Reich filed a special motion to strike the complaint under Code of Civil Procedure section 425.16, the anti-SLAPP (strategic lawsuit against public participation) statute. The court granted the motion, concluding the claims asserted by plaintiffs against Reich involved Reich’s petitioning activity protected by the anti-SLAPP statute, and that plaintiffs had not shown, and could not show, a probability they would prevail on any of their claims. Finding no reversible error, the Court of Appeal affirmed that order. View "MMM Holdings, Inc. v. Reich" on Justia Law

Plaintiff AO Alpha Bank (Alpha Bank) initiated this lawsuit pursuant to the Uniform Foreign-Country Money Judgments Act (Recognition Act; Code Civ. Proc., sections 1713–1725)1 to recognize a Russian judgment against defendant Oleg Yakovlev. Yakovlev moved for summary judgment, arguing the judgment could not be recognized because: (1) the Russian court lacked personal jurisdiction; (2) he did not receive notice of the Russian proceeding in sufficient time to enable a defense; and (3) the Russian court proceeding was incompatible with due process. His central premise was that service of process in the Russian proceedings was ineffective. The trial court agreed and denied recognition of the Russian judgment on personal jurisdiction grounds. It granted Yakovlev's motion for summary judgment and denied Alpha Bank's cross-motion for summary judgment. After review, the California Court of Appeal reversed, finding due process did not require actual notice; it required only a method of service "reasonably calculated" to impart actual notice under the circumstances of the case. The Court found service by registered mail to the address Yakovlev designated in the surety agreement met that standard. Yakovlev did not meet his burden to establish a basis for nonrecognition on grounds of lack of personal jurisdiction, lack of notice, or incompatibility with due process. Accordingly, the presumption in favor of recognition applied, and the Russian judgment was entitled to recognition. View "AO Alpha-Bank v. Yakovlev" on Justia Law

The owners of Pine Meadow Golf Course in Martinez sold the property to a developer. The city approved construction of a 99-unit single-family home subdivision, with improvements. Objectors circulated a petition opposing the planned development, seeking a referendum to reverse the approval. The owners and developer alleged that objectors used the name Friends of Pine Meadow to deceive fellow citizens into believing they were friends with the golf course owners, and attempted to inform people “about the true nature of the Friends of Pine Meadow.” The owners and developers filed suit, alleging interference with prospective economic advantage and defamation and seeking damages and injunctive relief. The trial court granted the objectors’ special motion to strike plaintiffs’ complaint under Code of Civil Procedure section 425.16, the anti-SLAPP (Strategic Law Suit Against Public Participation) law. The court of appeal affirmed, rejecting an argument that the claims arose out of commercial speech, which is not protected activity under the anti-SLAPP law. The statute makes no reference to commercial speech. Every claim in the complaint seeks to punish and/or suppress speech that relates to an official proceeding about a public issue. View "Dean v. Friends of Pine Meadow" on Justia Law