Avista Development v. Aldrich CA4/1

CourtCalifornia Court of Appeal
DecidedMarch 15, 2016
DocketD069076
StatusUnpublished

This text of Avista Development v. Aldrich CA4/1 (Avista Development v. Aldrich CA4/1) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Avista Development v. Aldrich CA4/1, (Cal. Ct. App. 2016).

Opinion

Filed 3/15/16 Avista Development v. Aldrich CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

AVISTA DEVELOPMENT, LLC et al., D069076

Plaintiffs and Appellants,

v. (Super. Ct. No. CIVDS1204644)

MARK ALDRICH et al.,

Defendants and Appellants.

APPEALS from an order of the Superior Court of San Bernardino County, David

S. Cohn, Judge. Affirmed.

Dentons US, David Simonton, Joshua Kroot for Plaintiffs and Appellants.

Lester & Cantrell, Mark S. Lester, David Cantrell and Colin A. Northcutt for

The parties appeal an order granting in part a special motion to strike under Code

of Civil Procedure section 425.16,1 the anti-SLAPP (strategic lawsuit against public

participation) statute. The operative second amended complaint (SAC) filed by plaintiffs

1 All further statutory references are to the Code of Civil Procedure unless otherwise specified. Avista Development, LLC (Avista), United Strategies, Inc. (United), Brownfield Group,

LLC (Brownfield), Bruce Cash, and Carrie Cash (collectively, Plaintiffs), alleges five

causes of action: (1) conversion; (2) trespass to chattels; (3) trespass to land;

(4) nuisance; and (5) fraud. The trial court granted the anti-SLAPP motion filed by

defendants Mark Aldrich, Ted Dutton, Jo Dutton, and School Facility Advisors, Inc.

(collectively, Defendants) as to the fraud claim, and denied the motion as to all of the

other causes of action.

The parties dispute whether Plaintiffs' causes of action arise from protected

activities. Defendants contend that all of Plaintiffs' causes of action arise from

communications made at a judgment debtor examination, which constitutes protected

activity, and thus, that the entire SAC must be stricken under the anti-SLAPP statute.

Plaintiffs maintain that their claims arise from extrajudicial and noncommunicative acts

by Defendants that occurred after the judgment debtor examination, and that interfered

with Plaintiffs' use of their property. We conclude that the gravamen of the first through

fourth causes of action is not based on protected activity in furtherance of the Defendants'

rights of petition or free speech, but that the fifth cause of action, for fraud, does arise

from protected conduct, and Plaintiffs did not establish a likelihood of prevailing on the

fraud claim. Accordingly, we affirm the trial court's order.

2 FACTUAL AND PROCEDURAL BACKGROUND

A. Ted Dutton's judgment against the Cashes

Carrie Cash and Bruce Cash2 are the founders of United, Avista, and Brownfield,

three separate companies formed in 1998, 2003, and 2005, respectively. United is a

regulatory compliance business involving land use and environmental rights. Avista was

formed to develop 156 acres of real property that it owns, located near Redlands,

California. Brownfield was formed to sell real property located in Rialto, California.

The companies' operations are run from the same office in Redlands, where Carrie and

Bruce also maintain certain personal files and assets.

In 2002, following a bench trial over a disputed debt, Ted obtained a monetary

judgment against Bruce and Carrie, jointly and severally. The judgment awarded Ted

$200,000, prejudgment interest, and attorney fees and costs. The companies founded by

Bruce and Carrie are not named in Ted's judgment. During the litigation and afterward,

Ted was represented by an attorney, Aldrich.

B. Judgment debtor's examination and Defendants' post-examination conduct

On April 30, 2009, Aldrich took a judgment debtor's examination of Carrie in

order to identify the Cashes' assets and facilitate collection of the unpaid portion of Ted's

judgment. At the conclusion of the examination, Aldrich obtained an "Order for Delivery

of Property after Examination" (the Turnover Order) pursuant to section 708.205. The

Turnover Order required the "Judgment Debtor" (noted in one place as Carrie and in

2 For the purpose of clarity, we will refer to the individual Cashes and Duttons by their first names. 3 another as both Carrie and Bruce) to deliver certain assets to Ted to "be applied toward

the satisfaction of the judgment." The listed assets included three horses (one owned by

Carrie and two owned by Avista), 100 percent of the Cashes' membership interests in

Avista, 1,000 shares of stock in United, and the balance of United's bank account.

On the day of the judgment debtor examination, Aldrich allegedly misled Carrie

into believing that the Turnover Order allowed him to take direct possession of the listed

assets in satisfaction of Ted's judgment, without need for delivery of the assets to a

levying officer. Aldrich "misrepresented to Carrie Cash that she was legally obligated to

give documents, keys, passcodes, and other items and information," to Aldrich and Ted.

For example, Aldrich allegedly told Carrie that she was required to provide him with the

passcodes to United's and Avista's accounting software. Further, Aldrich directed Carrie

to call the bank where United's account was held so that Aldrich and Ted could close the

account that day and collect the cash. In each instance, the SAC alleges that Carrie

reasonably relied on Aldrich's profession and his position as a court officer, and complied

with his requests.

Later that same day, Aldrich sent someone to the Cashes' residence to take

possession of the three horses listed in the Turnover Order. Carrie did not know that the

person was Aldrich's agent and not a levying officer. According to the SAC, the manner

in which Defendants took possession of the horses violated the Turnover Order.

On May 1, 2009, Ted allegedly executed a deed transferring real property owned

by Avista to School Facility Advisors, Inc., a company under his and his wife Jo's

control. The SAC alleges that the Duttons had no authority to transfer Avista's property.

4 On May 3, 2009, the Cashes filed for bankruptcy, triggering an automatic stay of

any collection attempts (11 U.S.C. § 362), and notified Defendants that same day of the

bankruptcy filing. The SAC alleges that the Cashes still owned 100 percent of the shares

of United and 100 percent of Avista and Brownfield as of the date of the bankruptcy

filing.

In subsequent days and weeks, Defendants allegedly entered Plaintiffs' office and

interfered with Plaintiffs' use of their property. For instance, on May 4, 2009, Carrie

learned from an alarm company that Ted was attempting to change the locks to Plaintiffs'

office. On that date, Ted and his agent/employee allegedly entered the office without

Plaintiffs' consent and began a process of searching for and reviewing physical files,

faxing hundreds of pages of documents to Aldrich, and creating an inventory of Plaintiffs'

personal and real property.

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