Brains Work Group v. OME Ventures CA4/1

CourtCalifornia Court of Appeal
DecidedJuly 18, 2023
DocketD080947
StatusUnpublished

This text of Brains Work Group v. OME Ventures CA4/1 (Brains Work Group v. OME Ventures 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
Brains Work Group v. OME Ventures CA4/1, (Cal. Ct. App. 2023).

Opinion

Filed 7/18/23 Brains Work Group v. OME Ventures CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

BRAINS WORK GROUP, INC., D080947

Plaintiff and Respondent,

v. (Super. Ct. No. 37-2021- 00004971-CU-CL-CTL) OME VENTURES INC.,

Defendant and Appellant.

APPEAL from an order of the Superior Court of San Diego County, Ronald F. Frazier, Judge. Affirmed. Armstrong Teasdale, Alexandra D. Thaler and Alina M. Shell (pro hac vice) for Defendant and Appellant. Greenbaum Law Group and Stephen J. Shumlas for Plaintiff and Respondent.

OME Ventures Inc. (OME) appeals the order denying its motion to set aside the default judgment obtained by Brains Work Group, Inc. (BWG). OME argues the superior court should have granted the motion because the judgment resulted from surprise and inadvertence due to lack of proper service, the judgment is void on its face, and extrinsic mistake justified equitable relief from the judgment. We affirm. I. BACKGROUND BWG is a New Jersey corporation that provides staffing, recruiting, and consulting services. On July 25, 2019, BWG entered into a written agreement with “OME Ventures (Client) located at 111 Town Square Pl., Suite 1507, Jersey City, NJ 07310,” by which OME agreed to pay BWG a specified fee for each person referred by BWG and hired by OME or an affiliate. The agreement states: “OME Ventures acquired business from Pathway Genomics and will honor previously signed agreement with Pathway Genomics and [BWG], which was fully executed on June 1, 2018.” The agreement between Pathway Genomics Corporation (PGC) and BWG lists a San Diego address for PGC. BWG placed 11 individuals with PGC or OME between September 2018 and March 2019, but was not paid for those placements. BWG filed a complaint against PGC and OME in the superior court on February 2, 2021. BWG alleged the superior court was the “proper court” because “a defendant is a corporation . . . and its principal place of business is here.” BWG attached copies of its agreements with PGC and OME, and alleged they breached the agreements by refusing to pay $156,000 for services BWG had provided under the agreements. BWG also asserted common counts. It prayed for damages, interest, and attorney fees. On February 5, 2021, BWG served the summons and complaint on OME at the San Diego address on file with the California Secretary of State. On March 9, 2021, OME’s counsel sent BWG’s counsel an e-mail stating: “We are aware of the matter, but have not seen a summons or service regarding

2 our client. If there is one, could you please provide it?” BWG’s counsel responded by forwarding the complaint and proof of service on OME’s designated agent. OME’s counsel wrote back that the process server had not served the designated agent and had left the papers with someone who was not an officer or agent of OME. OME’s counsel also stated he believed BWG had served the wrong corporation, because OME was a Delaware corporation and the complaint indicated the dispute involved a New Jersey corporation by the same name. BWG’s counsel replied that he would “do some investigation,” and eight days later sent another e-mail to OME’s counsel stating that BWG would amend the complaint to add the New Jersey corporation and an individual as defendants. The superior court’s register of actions contains no entries for any such amendments. Upon the written request of BWG, the superior court clerk entered the default of both PGC and OME on March 29, 2021. Based on BWG’s written declaration, the court on July 13, 2021, entered a judgment against PGC and OME for $156,000 in damages, $32,439.66 in prejudgment interest, and $641.84 in costs. About six weeks later, the court issued a writ of execution. On January 12, 2022, OME filed a motion to set aside the default judgment, to quash the writ of execution, and to direct the levying officer to return all monies taken from OME. It moved “pursuant to California Code of Civil Procedure section 473(b), because the judgment is void on its face and is the product of excusable surprise and inadvertence.” OME argued the judgment against it was void on its face because OME was a Delaware corporation, and the party of the same name that contracted with BWG was a New Jersey corporation. OME argued the judgment resulted from surprise and/or inadvertence, because although its counsel had informed BWG’s counsel that BWG had served the wrong entity and service was not made on

3 an officer or registered agent for service of process, and although BWG’s counsel agreed to amend the complaint to add and to serve the New Jersey corporation, BWG instead moved for entry of default judgment without first notifying OME it was going to do so. OME further argued setting aside the default judgment would not prejudice BWG, and it had sought relief within a reasonable time after it “first learned of the wrongfully entered judgment . . . upon service of the improperly issued execution in October [2021].” OME argued that as a consequence of setting aside the judgment, the superior court also should quash the writ of execution and order the levying officer to return all monies collected to satisfy the judgment. The motion referenced two declarations and attached exhibits, but those documents are not included in the record on appeal. BWG filed opposition to the motion. It argued OME had not shown mistake, inadvertence, surprise, or excusable neglect that would justify setting aside the default judgment under Code of Civil Procedure section 473, subdivision (b), and the motion was untimely under the statute. BWG further argued that because the default judgment was valid, the writ of execution was properly issued, and monies were properly seized from OME’s bank account. As part of the opposition, BWG’s counsel submitted a declaration that attached, among other exhibits, e-mails with OME’s counsel about service of process and the New Jersey corporation named “OME Ventures Inc.”; a certificate showing the New Jersey corporation dissolved on January 17, 2020, before it commenced business; and a filing showing the Delaware corporation by the same name had a business address in San Diego. The superior court held a hearing and denied OME’s motion. The court ruled the default judgment was not void on its face; BWG had “provided

4 sufficient evidence to conclude substitute service was properly effectuated on [OME]”; and relief was not available under Code of Civil Procedure section 473, subdivision (b), because the motion was filed more than six months after the entry of default. II. DISCUSSION A. OME’s Contentions OME asks us to reverse the order denying its motion to set aside the default judgment and to direct the superior court to grant the motion, to vacate the writ of execution, and to order BWG to return any monies it obtained pursuant to the writ. OME contends the court should have granted relief under Code of Civil Procedure section 473, subdivision (b), because its “surprise” at learning of the default was “at least partially attributable to the fact that [BWG] never properly served [OME]” and “also never bothered to tell [OME] that it was going to request a default prior to its March 29, 2021 request.” OME also contends the judgment against it is “void on its face,” because it is a Delaware corporation and an inspection of the complaint shows the party by the same name that contracted with BWG was a corporation located in New Jersey.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bennett v. Hibernia Bank
305 P.2d 20 (California Supreme Court, 1956)
Shamblin v. Brattain
749 P.2d 339 (California Supreme Court, 1988)
Johnson v. Hayes Cal Builders, Inc.
387 P.2d 394 (California Supreme Court, 1963)
Denham v. Superior Court
468 P.2d 193 (California Supreme Court, 1970)
Stiles v. Wallis
147 Cal. App. 3d 1143 (California Court of Appeal, 1983)
Weiss v. Blumencranc
61 Cal. App. 3d 536 (California Court of Appeal, 1976)
National Diversified Services, Inc. v. Bernstein
168 Cal. App. 3d 410 (California Court of Appeal, 1985)
Aldrich v. San Fernando Valley Lumber Co.
170 Cal. App. 3d 725 (California Court of Appeal, 1985)
Cope v. Cope
230 Cal. App. 2d 218 (California Court of Appeal, 1964)
Corey v. Weerts
214 Cal. App. 2d 416 (California Court of Appeal, 1963)
Floveyor Internat., Ltd. v. Superior Court of Los Angeles County
59 Cal. App. 4th 789 (California Court of Appeal, 1997)
Sakaguchi v. Sakaguchi
173 Cal. App. 4th 852 (California Court of Appeal, 2009)
In Re Marriage of Grissom
30 Cal. App. 4th 40 (California Court of Appeal, 1994)
Manson, Iver & York v. Black
176 Cal. App. 4th 36 (California Court of Appeal, 2009)
Eastern Seaboard, Etc. v. Nj Prop.-Liab. Ins. Guaranty Ass'n
421 A.2d 597 (New Jersey Superior Court App Division, 1980)
Falahati v. Kondo
26 Cal. Rptr. 3d 104 (California Court of Appeal, 2005)
Osgood v. Landon
25 Cal. Rptr. 3d 379 (California Court of Appeal, 2005)
Hearn v. Howard
177 Cal. App. 4th 1193 (California Court of Appeal, 2009)
Cruz v. Fagor America, Inc.
52 Cal. Rptr. 3d 862 (California Court of Appeal, 2007)
MOGHADDAM v. Bone
47 Cal. Rptr. 3d 602 (California Court of Appeal, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
Brains Work Group v. OME Ventures CA4/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brains-work-group-v-ome-ventures-ca41-calctapp-2023.