Brezinger v. Twarowski CA2/2

CourtCalifornia Court of Appeal
DecidedSeptember 2, 2014
DocketB248889
StatusUnpublished

This text of Brezinger v. Twarowski CA2/2 (Brezinger v. Twarowski CA2/2) 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
Brezinger v. Twarowski CA2/2, (Cal. Ct. App. 2014).

Opinion

Filed 9/2/14 Brezinger v. Twarowski CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION TWO

BORIS BREZINGER et al., B248889

Plaintiffs and Respondents, (Los Angeles County Super. Ct. No. SC116122) v.

EUGENE H. TWAROWSKI, III,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Los Angeles County. Norman P. Tarle, Judge. Affirmed.

Child & Marton LLP, Bradford T. Child and Michael R. Mauge for Defendant and Appellant.

Robert H. Roe for Plaintiffs and Respondents.

****** Plaintiffs and respondents Boris and Ella Brezinger (the Brezingers) filed a complaint against defendant and appellant Eugene H. Twarowski, and served the summons and complaint via substitute service. A default and default judgment were entered against appellant when he failed to answer or otherwise respond. The trial court denied appellant’s two motions seeking to vacate entry of default and the default judgment. We affirm. Appellant failed to show he was entitled to relief under Code of Civil Procedure section 473, subdivisions (b) and (d), and his renewed motion under Code of Civil Procedure section 473.5 failed to satisfy the requirements of Code of Civil Procedure section 1008, subdivision (b). FACTUAL AND PROCEDURAL BACKGROUND The Dispute Between the Brezingers and Appellant. The Brezingers owned a single-family home in Beverly Hills that suffered water damage in 2006. They reported the loss to their insurance carrier, Federal Insurance Company (Federal), and Federal paid the claim in part and disputed it in part. The Brezingers demanded an appraisal of the loss according to the terms of their insurance policy and Insurance Code section 2071.1 In January 2010, the Brezingers entered into a written contract (contract) with appellant, by which he agreed to serve as their appraiser in connection with the disputed portion of the claim. At the time the parties signed the contract and the Brezingers paid a $5,000 retainer, appellant verbally represented that he thought he could perform the appraisal for approximately $40,000. When the Brezingers expressed concern to appellant about the amount that had been billed by June 2010, appellant attributed the additional time spent to Federal’s appraiser’s refusal to cooperate. By September 2010 appellant’s bills exceeded $50,000, and he requested payment from the Brezingers for the

1 Insurance Code section 2071 requires a standard form fire insurance policy to include “an appraisal provision to settle disagreements” between the insurance company and the insured “concerning the amount of loss.” (Gebers v. State Farm General Ins. Co. (1995) 38 Cal.App.4th 1648, 1651.)

2 prior two months’ work, stating he would have no choice but to withdraw absent payment. The Brezingers paid appellant so that he would complete the appraisal process. Between January 2010 and August 2011, the Brezingers paid appellant a total of $137,880.21. They refused to pay an additional $88,652.73 he billed them. In June 2011, the Brezingers obtained an appraisal award signed by appellant and the umpire, or neutral appraiser, but not by Federal’s appraiser. The trial court denied the Brezingers’ petition to confirm the award and vacated the award on the ground the umpire failed to disclose a prior economic relationship with appellant. The Brezingers elected to negotiate a settlement of the claim with Federal for $525,000, which was less than one-half of the appraisal award. On October 3, 2011, appellant sent a letter to the Brezingers via certified mail, in which he reiterated his request for payment and advised that if his fees were not paid by October 10, 2011, he would have no choice but to commence legal action immediately. When he did not receive payment, appellant followed up with another letter to the Brezingers sent via facsimile advising that his attorney had prepared a complaint that would be filed in the event payment was not received by October 28, 2011. The Brezingers responded through counsel, requesting a refund of excess fees they asserted they paid appellant. According to the Brezingers, in a February 2012 letter and e-mail, appellant then falsely accused them of insurance fraud and threatened to make those accusations public. The Complaint and Default Judgment. On February 29, 2012, the Brezingers filed a complaint against appellant and his company, Twarowski Pacific, LLC, alleging causes of action for breach of contract, fraud, libel per se and declaratory relief.2 On March 15, 2012, appellant was served with the summons and complaint via substitute service pursuant to Code of Civil Procedure,

2 The Brezingers later dismissed Twarowski Pacific, LLC, from the action and it is not a party to this appeal.

3 section 415.20.3 According to a declaration of diligence signed by registered process server David Cunningham, he attempted to serve appellant at 25202 Crenshaw Boulevard, Suite 300, in Torrance (Torrance office) on March 13 and March 14, 2012. The Torrance office appeared as the return address on appellant’s correspondence to the Brezingers and was also listed with the California Secretary of State as appellant’s address for service of process. On March 15, 2012, Cunningham again attempted personal service, but then left the documents at the Torrance office with “John Doe,” described as the person in charge, male, 58 years old, five feet and eight inches tall, 165 pounds and balding. Appellant failed to answer or otherwise respond to the complaint. On May 9, 2012, the Brezingers filed a request for entry of default and the clerk entered default that day. One day earlier, they mailed a copy of the request to appellant at the Torrance office, and the request was not returned. In June 2012, they sought entry of a default judgment. In support of the request, they filed a proof of service of summons, declaration of diligence, Boris Brezinger’s declaration, a copy of the contract, copies of bills from appellant and copies of correspondence from appellant. In an August 2012 minute order, the trial court stated that the Brezingers had adequately proved their damages concerning the contract amount, interest and costs, but requested additional evidence concerning the request for attorney fees. After counsel submitted a supplemental declaration, the trial court entered a default judgment in favor of the Brezingers and against appellant in the amount of $160,776.02.4 On October 18, 2012, the Brezingers’ counsel served appellant by mail with a notice of entry of default judgment, and again, the notice was not returned.

3 Unless otherwise indicated, all further statutory references are to the Code of Civil Procedure.

4 The trial court later corrected a clerical error in the judgment to reflect that $110,776.02 was the amount owing.

4 Appellant’s Efforts to Set Aside the Default Judgment. In November 2012, appellant moved to vacate the entry of default and default judgment pursuant to section 473, subdivisions (b) and (d). He argued that the default and default judgment were void as a matter of law because he was not properly served, that they should be vacated due to extrinsic fraud or mistake, and that he was entitled to relief based on excusable neglect. In support of his motion, appellant submitted copies of pleadings and correspondence, including a May 12, 2012 letter from him to the Brezingers’ counsel indicating he was aware a lawsuit had been filed against him.

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Brezinger v. Twarowski CA2/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brezinger-v-twarowski-ca22-calctapp-2014.