Bastien v. Capielo CA4/1

California Court of Appeal·Decided April 18, 2016·No. D067647·Unpublished

Opinion

Filed 4/18/16 Bastien v. Capielo CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

ROCHELLE T. BASTIEN, D067647 Plaintiff and Appellant,

v. (Super. Ct. No. 37-2014-00017176-

CU-PN-CTL)

GEORG CAPIELO et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of San Diego County, Joan M.

Lewis, Judge. Affirmed in part and reversed in part.

Law Office of Stan Stern and Stan Stern for Plaintiff and Appellant.

Klinedinst PC, Gregor A. Hensrude and David M. Majchrzak for Defendants and Respondents.

Rochelle T. Bastien appeals following judgment on the pleadings in her legal malpractice lawsuit against Georg M. Capielo and Jack B. Winters who represented her in two proceedings, namely: (1) a request to set aside a stipulated dissolution of marriage

judgment and to divide omitted assets in the dissolution of Bastien's marriage to Dennis Dominguez (Bastien v. Dominguez (Super. Ct. San Diego County, 2014, No. ED55622) (the dissolution action); and (2) a malpractice lawsuit against Bastien's certified financial planner, Theodore Roman, that was resolved through binding arbitration (Bastien v. Roman (Super. Ct. San Diego County, 2011, No. 37-2007-00070967-CU-BC-CTL) (the Roman action).

With respect to the portion of the legal malpractice claim arising from the dissolution action, Bastien contends that the trial court erred in granting judgment on the pleadings, as the motion did not address the part of her legal malpractice claim arising from the request to divide omitted assets. In the alternative, she argues that she should at least have been granted leave to amend to clarify that her legal malpractice claim encompasses a claim arising from the request to divide omitted assets. Regarding the portion of the legal malpractice case arising from the Roman action, Bastien contends that the trial court erred in concluding that the statute of limitations barred that claim.

We conclude that Bastien's argument has merit with respect to the portion of her legal malpractice claim arising from the request to divide omitted assets in the dissolution action. The motion for judgment on the pleadings should have been granted with leave to amend to allow Bastien to allege legal malpractice claims arising from the request to divide omitted assets in the dissolution action. We accordingly reverse and remand for further proceedings.

I

FACTUAL AND PROCEDURAL BACKGROUND To understand Bastien's allegations in the current legal malpractice lawsuit, it is necessary to review the previous legal proceedings in which Bastien has been involved, two of which gave rise to opinions in this court: Bastien v. Kershek (Apr. 17, 2012, D058424) (nonpub. opn.) (Kershek); and In re Marriage of Bastien and Dominquez (Sept. 18, 2013, D061209) (nonpub. opn.) (the 2013 Opinion). All of Bastien's previous litigation arose from Bastien's dissatisfaction with the marital settlement agreement (MSA) that Bastien and Dominguez entered into and which was incorporated into the judgment of dissolution in August 2002. A. The Lawsuit Against Mediator Denny Kershek As we explained in previous opinions, Bastien became dissatisfied with the MSA at least by 2005, when she wrote a series of letters to the attorney and family friend who mediated the MSA, Denny Kershek. Bastien accused Kershek of being biased against her and colluding with Dominguez to hide assets.

In 2009, Bastien filed a lawsuit against Kershek, alleging fraud and other causes of action, based on the claim that Kershek had a preexisting attorney-client relationship with Dominguez, and instead of acting as a neutral mediator, Kershek colluded with Dominguez to prevent Bastien from receiving a full and fair division of the marital estate. Bastien argued that although she first suspected the collusion between Kershek and Dominguez in 2005, her 2009 lawsuit was not barred by the statute of limitations because

she had recently discovered a cancelled check purportedly showing Kershek and Dominguez had a preexisting attorney-client relationship.

The trial court dismissed the lawsuit based on the statute of limitations, and in Kershek, supra, D058424, we affirmed the judgment. We explained that Bastien discovered her cause of action for fraud against Kershek in 2005, not in 2009, because that is when she began accusing Kershek of colluding with Dominguez. B. The Roman Action Meanwhile, in 2007, Bastien filed the Roman action, alleging fraud and breach of fiduciary duty against certified financial planner Roman, who had advised her and Dominguez during their marriage.1 According to the parties, the Roman action was ordered to binding arbitration.

Bastien alleges that in 2009 she hired Capielo to represent her in the Roman action. According to Bastien, Capielo became associated with Winters's law firm sometime in 2011, so that both Capielo and Winters allegedly represented her after that date. In August 2011, the arbitrator issued a decision explaining that Roman "is not liable to Dr. Bastien on her complaint for damages on any theory." Dismissal with prejudice of the Roman action was entered in the trial court on November 16, 2011.

1 The appellate record does not contain the complaint in the Roman action, but it is described in the 2013 Opinion as a complaint alleging fraud and breach of fiduciary duty. In her appellate brief, Bastien represents that the operative first amended complaint alleged (1) negligence and malpractice; (2) breach of contract; (3) fraud; and (4) accounting and breach of fiduciary duty. She states that the gravamen of the complaint was that "Roman had fraudulently failed to disclose financial information in connection with the settlement of Dr. Bastien's divorce from Dr. Dominguez, which resulted in assets being omitted from the divorce settlement."

C. The Dissolution Proceeding Although the record before us does not contain extensive information about all of the proceedings that have occurred in the dissolution action since judgment was entered on the MSA in 2002, the 2013 Opinion contains some pertinent information on that subject.

First, "[i]n January 2006 [Bastien] filed a motion to divide the Putnam retirement account, which she asserted was a missing asset. [Dominguez] contended the Putnam account was considered in the MSA and fell under a TD Waterhouse IRA."

Second, "[i]n July 2007 [Bastien] sought additional funds for their daughter's college tuition. She filed a motion in family court to force [Dominguez] to pay a $10,000 loan their daughter had incurred. [Bastien's] request . . . was denied by the court, the court finding it was not clear from the MSA terms that [Dominguez] was liable for the $10,000 loan."

Third, "[i]n February 2008 [Bastien] sought the appointment of a special master to determine if there were missing assets. This request was denied. A pension was valued at $350,000 and it turned out its true value was $35,000, not $350,000. During the hearing [Bastien] admitted the correct number was $35,000. At the end of the hearing, the court stated [Bastien's] remedy was not the appointment of a special master but instead might be moving to set aside the judgment on the basis of fraud."

Fourth, "[i]n May 2008 [Bastien] filed a motion to set aside the judgment. She alleged fraud was committed by [Dominguez] and Roman. She alleged there were omitted assets including accounts at Putnam, and Community First National Bank, life

insurance, pension and profit sharing plans and the value of [Dominguez's] business. The court denied [Bastien's] motion."

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