Justia California Court of Appeals Opinion Summaries

Plaintiff Vitatech International, Inc. (Vitatech) filed a breach of contract lawsuit against defendants National Marketing, Inc., CortiSlim International, formerly known as National Marketing, Inc., CortiSlim International, LLC, and Alan Sporn (collectively, Defendants). On the eve of trial, the parties settled for a one-time payment of $75,000. As part of the settlement, Defendants stipulated to entry of judgment against them “in the full prayer of the Complaint,” but Vitatech agreed to “forbear” from filing the stipulation and to accept the $75,000 “as full Settlement of its claims against Defendants” if they paid by the designated date. When Defendants failed to pay, Vitatech filed the stipulation and the trial court entered judgment against Defendants for more than $300,000, which included compensatory damages, prejudgment interest, attorney fees, and costs. Sporn and appellant CortiSlim International, Inc. (collectively, Appellants) moved to vacate the judgment, arguing it was an unenforceable penalty and liquidated damages provision under Civil Code section 1671(b). The trial court denied the motion because it found the judgment’s higher amount was not a penalty or liquidated damages provision subject to section 1671(b). Rather, the court concluded the reduced amount Vitatech agreed to accept was merely a discount if Defendants paid their debt as agreed. The Court of Appeal reversed and remanded for the trial court to grant the motion and enter a new judgment for the $75,000 settlement amount, plus trial court costs. Under well-established precedent, including this court’s decision in Greentree Financial Group, Inc. v. Execute Sports, Inc., 163 Cal.App.4th 495 (2008), the stipulated judgment for more than four times the amount Vitatech agreed to accept as full settlement of its claims was an unenforceable penalty because it bore no reasonable relationship to the range of damages the parties could have anticipated would result from Defendants’ failure timely to pay the settlement amount. “Although Defendants stipulated to entry of judgment if they did not timely pay, they never admitted liability on the underlying claims or the amount of damages allegedly caused by the breach of the underlying contract.” View "Viatech International, Inc. v. Sporn" on Justia Law

Denton sued his employer, San Francisco, alleging workplace retaliation, disability discrimination (disparate treatment, failure to accommodate, failure to engage in the interactive process), defamation, violation of the Confidentiality of Medical Information Act (Civ. Code 56), hostile work environment harassment, and failure to prevent harassment, discrimination, or retaliation, and against his supervisor, alleging defamation and hostile work environment harassment. After defendants moved for summary judgment, negotiations led to a settlement ($250,000). Denton’s then-counsel filed a notice of conditional settlement. A week later, after Denton discharged his attorney, defendants’ counsel successfully applied ex parte to have the settlement set aside, despite Denton twice assuring defendants’ counsel that he was not backing out of the settlement. Four days later, at the hearing on defendants’ summary judgment motion, Denton, appearing in propria persona, requested a continuance to oppose the motion. The trial court denied the request and granted defendants’ motion as unopposed. The court of appeal reversed. The trial court abused its discretion. To the extent the court implied that Denton was not diligent, the implication is not supported by the record. Defendants’ counsel acknowledged as much at the hearing. View "Denton v. City and County of San Francisco" on Justia Law

The Court of Appeal addressed whether, for purposes of overcoming the workers' compensation exclusivity doctrine (Lab. Code, section 3600(a) and 3602(a)), an employee’s statements against her hotel employer for violating provisions in the California Fair Employment and Housing Act (FEHA), were sufficient to protect her from nonemployee sexual harassment. The employee alleged facts showing: (1) she was raped while working on the employer's premises by a drunk nonemployee trespasser; (2) the employer knew or should have known the trespasser was on the employer's premises for about an hour before the rape occurred; and (3) the employer knew or should have known that, while on the employer's premises, the trespasser had aggressively propositioned at least one other housekeeping employee for sexual favors. The Court of Appeal concluded these facts were sufficient to state claims under the FEHA for sexual harassment by a nonemployee and for failure to prevent such harassment. Because the superior court determined otherwise and dismissed the employee's operative third amended complaint (complaint) after sustaining the employer's demurrer to it without leave to amend, the Court reversed the judgment and remanded the matter to the trial court for further proceedings. View "M.F. v. Pacific Pearl Hotel Management LLC" on Justia Law

Plaintiff YDM Management Company, Inc. (YDM) appeals from a judgment of the trial court in favor of defendant Sharp Community Medical Group, Inc. (Sharp), after Sharp successfully moved for summary judgment of YDM's operative complaint. YDM purchased accounts receivable from Doctors Express, a company that operated urgent care facilities in San Diego, for services rendered to Sharp managed care members. In its role as an Independent Practice Association (IPA), Sharp provided health insurance to its managed care members, and paid claims for services provided to its members. At the time that it provided the services at issue to Sharp members, Doctors Express did not have a preferred provider contract with Sharp. Providers without a contract with an IPA were reimbursed for nonemergency medical services provided to the IPA's members at amounts significantly less than the "reasonable and customary value for the health care services rendered." However, an IPA such as Sharp was required by regulation to reimburse out of network providers for the full "reasonable and customary value" for any emergency medical services provided to its members. As the assignee of Doctors Express, YDM filed this lawsuit seeking additional reimbursement from Sharp for services provided by Doctors Express to members of Sharp's health plan, beyond the amount that Sharp had already reimbursed Doctors Express for those services. The trial court granted summary judgment in favor of Sharp. On appeal, YDM contended the trial court erred in granting summary judgment in Sharp's favor based on the declaration of a Sharp employee, and that the court erred in failing to give adequate consideration to the declaration of YDM's expert in concluding that there was no triable issue of material fact. The Court of Appeal concluded the trial court did not err in granting summary judgment in favor of Sharp. View "YDM Management Co., Inc. v. Sharp Community Med. etc." on Justia Law

Plaintiff-appellant Paul Kendall's second amended complaint made several types of class-wide claims that challenged the billing and collection practices of the health facility operating an emergency room where he received care, defendant and respondent Scripps Health (Scripps). Kendall contended that "selfpay" patients, who signed a form during the reception process at the emergency room (an "Agreement for Services at a Scripps Facility"), were being unfairly billed under that contractual agreement at prescribed rates that are listed on a publicly available "charge description master" (Charge Master). This appeal arose out of the trial court's order denying Kendall's motion to certify a proposed class of self-pay patients for the pursuit of two overriding legal theories that applied to both the declaratory relief and statutory claims. Scripps opposed the motion, arguing a class action was not shown to be an appropriate method to pursue the case because of a lack of predominant common issues and of any convincing showing of an ability to ascertain the identity of all the proposed class members. The trial court denied the motion for class certification, concluding that Kendall had not presented any substantial evidence showing there were predominant common issues of law and fact among the putative class members. On appeal, Kendall contends the trial court's order denying class certification of his statutory claims reflects the use of improper criteria and an incorrect legal analysis. Finding no abuse of discretion or lack of substantial evidence, the Court of Appeal affirmed the order denying class certification. View "Kendall v. Scripps Health" on Justia Law

The trust that was intended to establish a charitable foundation. When Shine became trustee, its value was about $40 million. The conservator of the incompetent trustor sought an accounting, which revealed a significant loss in value and that Shine had not funded the foundation. The Attorney General sought Shine’s removal and surcharge based on his mismanagement, Gov. Code 12598. An interim substitute trustee was appointed. Shine successfully sought advanced fees from the trust for defense of the petition, subject to repayment if he was ultimately found not entitled to indemnification. The court of appeal reversed, holding that the probate court applied an incorrect legal standard in focusing on the “inequity of forcing the former trustees to fund their own defense against the unlimited resources of the Attorney General’s office” but did not expressly weigh the balance of relative harms to Shine, the People, and the charitable beneficiaries of the Trust. A mere imbalance in resources is not, alone, a proper equitable consideration supporting an award of interim fees; the court must consider whether Shine will be unduly prejudiced by having to bear his own attorney fees until resolution of the petition and whether the charitable beneficiaries would be unduly prejudiced if the fees were advanced and not repaid. View "Harris & Becerra v. Shine" on Justia Law

While working as a crane operator, plaintiff George Sutherland sustained injuries when his crane tipped over. Sutherland filed his original complaint, which included a negligence cause of action against real party in interest, Curtis Engineering Corporation (Curtis), a provider of engineering services. Sutherland's original complaint did not include a certificate, as required by Code of Civil Procedure section 411.35, subdivisions (a) and (b). Sutherland filed and served a first amended complaint which included a certificate. The original and amended complaint were identical, except for two additional paragraphs in the amended complaint stating that: (1) a certificate is attached as an exhibit to the amended complaint and is incorporated by reference, and (2) a claim was sent to defendant Oregon State University. Curtis demurred to the amended complaint arguing, among other things, that Sutherland failed to file the required certificate within the limitations period. The trial court overruled the demurrer. As relevant here, the court concluded that the amended complaint related back to the filing date of the original complaint. In this case, the Court of Appeal concluded that a certificate filed after expiration of the statute of limitations and more than 60 days after filing the original pleading did not relate back to the filing of the original pleading. The trial court erred when it overruled a demurrer alleging noncompliance with the certificate requirement of section 411.35. Accordingly, the Court granted the petition for writ of mandate. View "Curtis Engineering Corp. v. Superior Court" on Justia Law

Appellants Gordon and Donna Runyon were once married. In 2010, respondent Comerica Bank (Comerica) obtained a joint and several judgment for breach of guaranty against Gordon and some other defendants. Gordon and Donna then divorced, the other judgment debtors settled with Comerica, and post-divorce, Comerica obtained an order to show cause why real property that was formerly community property but then owned as separate property by Donna, should not be sold to satisfy the remaining debt owing on the judgment. Donna and other debtors each paid certain sums, and eventually the judgment was satisfied in full. Gordon filed an application for order of contribution contending he paid more than his proportional share of the judgment through his community property interests. He requested contribution from the cojudgment debtors. The court denied the motion on grounds the application failed to demonstrate it was timely filed. In this appeal, Gordon argued he satisfied the requirements of Code of Civil Procedure sections 881 through 883 under which he sought contribution, because when his application was heard Comerica had not yet filed a satisfaction of judgment and therefore it was timely filed. After review, the Court of Appeal agreed and reversed as to Gordon. However, the Court found Donna lacked standing, so her appeal was dismissed. View "Comerica Bank v. Runyon" on Justia Law

Defendants-respondents the City of Davis (City) and the City Council of the City of Davis (City Council) approved a conditional use permit authorizing the use of a single family home in a residential zoning district as professional office space for three therapists. Petitioner-appellant and next door neighbor Michael Harrington, filed a petition for an administrative writ of mandate asking the trial court to set aside the conditional use permit. The trial court denied the petition. Harrington appealed, arguing: (1) the conditional use permit violated an ordinance prohibiting parking in the front yard setback; (2) the issuance of the conditional use permit resulted in a change in occupancy triggering accessible parking requirements under the California Building Standards Code (Cal. Code Regs., tit. 24, pt. 2); (3) the conditional use permit contemplated alterations triggering the accessible parking requirements; (4) the City Council failed to make sufficient findings to support a conclusion that compliance with accessible parking requirements would be technically infeasible, and the findings are not supported by substantial evidence; and (5) the City Council failed to make sufficient findings to support a conclusion that the permitted use is consistent with the zoning designation, and the findings are not supported by substantial evidence. After review, the Court of Appeal concluded: (1) the conditional use permit did not require parking in the front yard setback; (2) the City’s reasonable construction of the Building Code is entitled to deference, and its determination that the issuance of the conditional use permit did not result in a change in occupancy is supported by substantial evidence; (3) Harrington forfeited the argument that the conditional use permit contemplated alterations within the meaning of the Building Code; (4) technical infeasibility findings were not necessary, as the City Council did not rely on that theory; and (5) the City Council’s consistency findings were legally sufficient and supported by substantial evidence. View "Harrington v. City of Davis" on Justia Law

In 2001, Michael Durkin, through two limited liability companies, purchased two lots directly adjacent to the McClellan Palomar Airport (Airport) in the City of Carlsbad (City). His development plans for the two lots were initially successful despite determinations by the San Diego County Regional Airport Authority (Authority) that the proposed projects were not compatible with the Airport. Overriding the Authority's objections, the City issued a planned industrial permit and Durkin completed the construction of a commercial building on one of the lots in 2005. He also obtained a permit from the City for construction of a second building on the other lot. Both permits included provisions in which Durkin agreed to hold the City harmless for any liability arising out of approval of the projects. Durkin's permit on the second lot expired in 2012 without the commencement of any construction. By the time Durkin sought to restart the permitting process with the City, the Authority had adopted an Airport Land Use Compatibility Plan (ALUCP) that designated Durkin's properties as being within a Safety Zone that carried specific limiting recommendations for compatible land uses. Despite having approved Durkin's previous permit application, the City now refused to override the recommendations in the ALUCP. Durkin filed an inverse condemnation action against the Authority and San Diego County, arguing the value of his property was depressed by the Authority’s adoption of the ALUCP and that decrease in value constituted a governmental taking. The Court of Appeal concluded the trial court properly entered summary judgment in favor of the County and the Authority on the ground that undisputed evidence shows there was no taking by these defendants. View "Dryden Oaks v. San Diego County Regional Airport Authority" on Justia Law