Alliance Bank v. Murray

161 Cal. App. 3d 1, 207 Cal. Rptr. 233
California Court of Appeal·Decided October 22, 1984·No. B003692·Published·Cited by 30 cases

Opinion

161 Cal.App.3d 1 (1984)
207 Cal. Rptr. 233

ALLIANCE BANK, Plaintiff and Respondent,
v.
STEVEN W. MURRAY, Defendant and Appellant.

Docket No. B003692.

Court of Appeals of California, Second District, Division Seven.

October 22, 1984.

*3 COUNSEL

Steven W. Murray, in pro. per., Warren & Marks, Richard D. Marks and Frank D. McAlpine for Defendant and Appellant.

Michael L. Abrams and Hugh G. Radigan for Plaintiff and Respondent.

OPINION

THOMPSON, J.

Defendant Steven Murray (appellant) appeals from the default judgment entered subsequent to the court's order striking defendant's answer to the complaint and entering his default as sanctions for his wilful failure to attend two properly noticed depositions. (Code Civ. Proc., § 2034, subd. (d).) For reasons to follow, we affirm.

Factual Background

On March 15, 1982, appellant executed and delivered to respondent Alliance Bank (respondent) a promissory note for $92,000 due in full on June 15, 1982. Respondent unsuccessfully demanded payment on the note on June 15, 1982, and filed the instant complaint to recover the principal plus interest, attorney's fees and costs, on December 15, 1982. Appellant's answer was filed on March 21, 1983.

*4 On March 30, 1983, respondent served appellant with notice of appellant's deposition for April 21, 1983. Appellant's attorney of record, Thomas J. Flesher, in a letter to respondent's attorney, Jerold S. Sherman, dated April 14, 1983, requested that the April 21 deposition be vacated or continued until the substitution of other counsel for respondent. Flesher claimed that a conflict of interest existed between appellant and Sherman due to Sherman's participation as Director of Alliance Bank in the underlying transaction wherein appellant executed the promissory note.

On April 20, 1983, Flesher again informed Sherman in a telephone conversation that appellant would not attend the April 21 deposition due to the conflict of interest. Sherman replied that the deposition would go forward absent a protective order. Despite the fact that no protective order was obtained, appellant did not attend the April 21 deposition.

On April 29, 1983, respondent served appellant with notice of a motion for an order striking defendant's answer, entering defendant's default, or in the alternative, imposing other penalties, to be heard on May 20, 1983. Appellant failed to file any written opposition to the motion.

The motion was heard by the court on May 20, 1983; both parties appeared through their respective counsel. The court's minute order states that the motion is "[t]reated as a motion to compel [a]ppellant's deposition and is granted." Appellant was ordered to attend his deposition "to be held at time and place noticed within 20 days," and to pay attorney's fees of $350 to respondent's counsel. The court further stated: "If the above order is not fully complied with, upon ex parte application and at least 2 days written notice, the court may grant relief requested and require payment of additional attorney's fees of $150.00, payable forthwith thereafter." Respondent mailed notice of the above ruling to appellant on May 20, 1983.

On May 20, 1983, following the hearing on respondent's motion, the parties orally stipulated that appellant would be deposed on June 1, 1983; respondent also served by mail the notice of the June 1 deposition. However, appellant again failed to appear.

On June 6, 1983, respondent served appellant by mail with notice of respondent's ex parte application to be heard on June 14, 1983, for an order striking defendant's answer, entering defendant's default and judgment for plaintiff. Appellant again failed to file written opposition.

Respondent's ex parte application was heard on June 14, 1983; both parties appeared through their counsel. The court found that appellant's failure *5 to attend the two properly noticed depositions was wilful and entered an order striking his answer and entering his default.

Issues on Appeal

Appellant raises the following issues: (1) Whether the portion of the court's May 20, 1983, minute order conditionally authorizing respondent to bring an ex parte application for an order striking the answer to the complaint and entering appellant's default, and awarding $150 attorney's fees, on only two days' written notice, was in excess of the court's jurisdiction;

(2) Whether appellant was given proper notice of the June 14, 1983, ex parte hearing on respondent's motion for sanctions;

(3) Whether the court's June 20, 1983, order striking appellant's answer and entering his default is invalid because it is based on the invalid portion of the May 20 minute order; and

(4) Whether the court abused its discretion in striking appellant's answer and entering his default.

The May 20, 1983, Order

When a party wilfully fails to attend his properly noticed deposition, the court on motion and notice may strike out all or any part of any pleading of that party, or dismiss the action or proceeding or any part thereof, or enter a judgment by default against that party, or impose other penalties of a lesser nature the court may deem just, and may order that party or his attorney to pay to the moving party the reasonable expenses in making the motion, including reasonable attorney's fees." (Code Civ. Proc., § 2034, subd. (d).) This statute by its terms requires both notice and motion in order for the court to impose sanctions pursuant to Code of Civil Procedure section 2034, subdivision (d).

Moreover, the local rules for the Los Angeles Superior Court concerning ex parte orders provides: "Application for orders may be ex parte unless statute or rule requires notice. [Citation.] In Los Angeles County, however, it has been the practice to require notice if it is not entirely clear that an ex parte order is proper or if factual issues are presented in which the facts might be in doubt and where it thus appears that both parties should have an opportunity to be heard." (L.A. Super. Ct. Manual of Ex Parte and Related Matters (1982) § 420.)

(1a) In addition to the statutory requirement for notice, due process requires that notice be given prior to the imposition of sanctions. As the *6 court stated in O'Brien v. Cseh (1983) 148 Cal. App.3d 957, 961 [196 Cal. Rptr. 409]: "Application for orders may not be ex parte if a statute or rule requires notice.... [¶] Adequate notice prior to imposition of sanctions is mandated not only by statute, but also by the due process clauses of both the state and federal Constitutions. (Cal. Const., art. I, § 7; U.S. Const., 14th Amend.)" In O'Brien, the court reversed the ex parte order awarding attorney's fees to defendant pursuant to Code of Civil Procedure section 128.5; defendant had provided plaintiff with only one day's notice by telephone of the date, time and place of the ex parte application for attorney's fees, despite the explicit notice requirement contained in section 128.5, subdivision (b). (O'Brien v. Cseh, supra, 148 Cal. App.3d at p. 961.)

In Jones v. Otero (1984) 156 Cal. App.3d 754 [203 Cal. Rptr. 90], the appellate court reversed a judgment entered for defendants after the trial court granted defendants' oral nonnoticed motion to dismiss pursuant to Code of Civil Procedure section 2034: "The trial court erred in dismissing the action as no notice of defendants' motion to dismiss pursuant to Code of Civil Procedure section 2034 had been given. (See Code Civ.

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Alliance Bank v. Murray, 161 Cal. App. 3d 1, 207 Cal. Rptr. 233 (Cal. Ct. App. 1984).

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