Capitol Indemnity Corp. v. Topolewski CA2/4

CourtCalifornia Court of Appeal
DecidedAugust 23, 2023
DocketB320636
StatusUnpublished

This text of Capitol Indemnity Corp. v. Topolewski CA2/4 (Capitol Indemnity Corp. v. Topolewski CA2/4) 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
Capitol Indemnity Corp. v. Topolewski CA2/4, (Cal. Ct. App. 2023).

Opinion

Filed 8/23/23 Capitol Indemnity Corp. v. Topolewski CA2/4

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

CAPITOL INDEMNITY B320636 CORPORATION, (Los Angeles County Plaintiff and Respondent, Super. Ct. No. 19CHCV00314)

v.

GARY G. TOPOLEWSKI, et al.,

Defendants and Appellants.

APPEAL from a judgment of the Superior Court of Los Angeles County, Melvin D. Sandvig, Judge. Affirmed in part and reversed in part. Blut Law Group and Elliot S. Blut for Defendant and Appellant Gary G. Topolewski. Law Office of Howard Goodman and Howard Goodman for Plaintiff and Respondent. Respondent Capitol Indemnity Corporation (Capitol) obtained a judgment against appellant Gary Topolewski in 2008 in an unrelated matter. In 2018, Topolewski filed an acknowledgment of satisfaction of judgment, falsely stating that the judgment had been satisfied in full. A few months later, Topolewski obtained a grant deed in his name to a parcel of real property. He paid for the property with money provided by Northern Resources, Inc. (Northern). Two months after that, Topolewski transferred the property by quitclaim deed to Northern. Capitol brought an action against Topolewski and Northern, alleging claims for fraudulent conveyance and conspiracy. Capitol alleged that absent the fraudulent satisfaction of judgment, it would have obtained a lien on the property for the amount of its judgment during the time Topolewski held it in his name. Instead, Capitol alleged that Topolewski and Northern conspired to avoid the lien by filing the satisfaction of judgment and then transferring the property to Northern. Capitol sought to set aside the property transfer and impose the lien. Capitol also sought punitive damages. Following a bench trial, the court entered judgment in favor of Northern, finding that it was a bona fide purchaser of the property. As such, the court declined to set aside the transfer of the property to Northern. As to Topolewski, the court entered judgment against him and in favor of Capitol, finding that Topolewski had filed and recorded the fraudulent satisfaction of judgment in order to avoid Capitol’s lien on the property. The court awarded Capitol the amount of its prior judgment, plus interest, as well as punitive damages against Topolewski.

2 Topolewski appeals. He argues that the court erred in finding for Capitol on its fraudulent conveyance claim, contending that the property never belonged to him and therefore Capitol never had a right to a lien on it. He argues that Capitol did not prove any damages on the same basis. We find no error as to these claims. However, we agree with Topolewski that Capitol failed to present sufficient evidence of his financial condition to support the award of punitive damages. We therefore reverse the award of punitive damages and otherwise affirm the judgment. FACTUAL AND PROCEDURAL HISTORY I. The Complaint Capitol filed a complaint against Topolewski and Northern in April 2019, alleging claims for fraudulent transfer and conspiracy. Capitol alleged that Northern was a corporation doing business in Nevada and that Topolewski was a “shareholder, officer, and/or director” of Northern. Capitol alleged that in 2008, it obtained entry of judgment in Los Angeles Superior Court based on a Nevada judgment entered against Topolewski (the underlying matter).1 Capitol renewed the judgment in 2017 in the amount of $71,067.60 and recorded an abstract of judgment with the Los Angeles County Recorder in January 2018. Capitol attached copies of these documents to the complaint. The complaint further alleged that on May 2, 2018, Topolewski filed a false acknowledgment of satisfaction of judgment (the satisfaction of judgment) in the underlying matter,

1 The judgment was entered against Gary and Mark Topolewski. Mark Topolewski is not a party to this appeal.

3 stating that the judgment had been satisfied in full.2 Capitol attached a copy of the satisfaction of judgment to its complaint. The cover page states that Topolewski requested the recording of the satisfaction of judgment. The satisfaction of judgment lists Capitol as the filing party, with an address on Lurline Avenue in Chatsworth, California. The document bears an illegible signature. The following page is a notary’s certificate, stating that the document was signed by Angelo Mastantuono, an individual.3 As detailed in the copies attached to the complaint, in July 2018, Topolewski acquired by grant deed a parcel of real property on Tuba Street in Northridge, California (the Tuba Street property). That grant deed was recorded in August 2018. On September 26, 2018, Topolewski executed a quitclaim deed conveying title to the Tuba Street property to Northern for no consideration. The quitclaim deed was recorded on October 5, 2018. Capitol also alleged that in February 2019, the court in the underlying matter granted Capitol’s motion to vacate the satisfaction of judgment. As such, Capitol remained a creditor of Topolewski. In the first cause of action to set aside the fraudulent transfer, Capitol alleged that the satisfaction of judgment was “false and fraudulent” and that Topolewski and Northern

2 Topolewski claimed below that he did not file or cause to be filed the false satisfaction of judgment. However, he does not challenge on appeal the trial court’s finding to the contrary. It is undisputed that the judgment has not actually been satisfied. 3 Topolewski testified at trial that he knew Mastantuono, but

denied that Mastantuono was employed by Topolewski’s company, Metal Jeans, Inc.

4 prepared, executed, and recorded the fraudulent satisfaction of judgment “to prevent the attaching of a judgment lien” to the Tuba Street property. The complaint further alleged that Topolewski’s transfer of his interest in the Tuba Street property to Northern and the preparation and recording of the fraudulent acknowledgment of satisfaction of judgment were “made with an actual intent to hinder, delay, and defraud all of the current and future creditors” of Topolewski, including Capitol, in violation of the Uniform Fraudulent Transfer Act, Civil Code section 3439.04.4 Capitol further sought $50,000 in punitive damages, alleging that Topolewski and Northern acted “intentionally, willfully, fraudulently, and maliciously” to defraud Topolewksi’s creditors and to deprive those creditors “of a real property which could be liened [sic] or levied to satisfy [Capitol’s] judgment.” In the second cause of action for conspiracy, Capitol alleged that Topolewski and Northern conspired to hinder Capitol’s collection of its judgment through the recording of the satisfaction of judgment and the transfer of the Tuba Street property. Capitol alleged that it had been damaged in the amount of its unsatisfied judgment, along with accrued interest. The complaint sought to have the transfer set aside and declared fraudulent and void to the extent necessary to satisfy Capitol’s judgment, a temporary restraining order prohibiting Topolewski and Northern from transferring or disposing of the

4 The Uniform Voidable Transactions Act (UVTA), formerly known as the Uniform Fraudulent Transfer Act (see Stats. 2015, ch. 44, § 2, p. 1456 (Sen. Bill No. 161 (2015–2016 Reg. Sess).)), “permits defrauded creditors to reach property in the hands of a transferee.” (Mejia v. Reed (2003) 31 Cal.4th 657, 663 (Mejia).) All further statutory references are to the Civil Code unless otherwise indicated.

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

Related

Citizens Business Bank v. Gevorgian
218 Cal. App. 4th 602 (California Court of Appeal, 2013)
Lazar v. Superior Court
909 P.2d 981 (California Supreme Court, 1996)
Neal v. Farmers Insurance Exchange
582 P.2d 980 (California Supreme Court, 1978)
Adams v. Murakami
813 P.2d 1348 (California Supreme Court, 1991)
Kelly v. Haag
52 Cal. Rptr. 3d 126 (California Court of Appeal, 2006)
Baxter v. Peterson
58 Cal. Rptr. 3d 686 (California Court of Appeal, 2007)
Fladeboe v. American Isuzu Motors Inc.
58 Cal. Rptr. 3d 225 (California Court of Appeal, 2007)
Annod Corp. v. Hamilton & Samuels
123 Cal. Rptr. 2d 924 (California Court of Appeal, 2002)
Yaesu Electronics Corp. v. Tamura
28 Cal. App. 4th 8 (California Court of Appeal, 1994)
Newton v. Clemons
1 Cal. Rptr. 3d 90 (California Court of Appeal, 2003)
County of Butte v. EMERGENCY MEDICAL SERVICES AUTHORITY
187 Cal. App. 4th 1175 (California Court of Appeal, 2010)
NIKO v. Foreman
50 Cal. Rptr. 3d 398 (California Court of Appeal, 2006)
Kashmiri v. Regents of the University of California
67 Cal. Rptr. 3d 635 (California Court of Appeal, 2007)
Rufo v. Simpson
103 Cal. Rptr. 2d 492 (California Court of Appeal, 2001)
In Re Marriage of Arceneaux
800 P.2d 1227 (California Supreme Court, 1990)
Mejia v. Reed
74 P.3d 166 (California Supreme Court, 2003)
Soto v. Borgwarner Morse Tec Inc. CA2/4
239 Cal. App. 4th 165 (California Court of Appeal, 2015)
Thompson v. Asimos
6 Cal. App. 5th 970 (California Court of Appeal, 2016)
F.People v. Monier
405 P.3d 1076 (California Supreme Court, 2017)
City of Industry v. City of Fillmore
198 Cal. App. 4th 191 (California Court of Appeal, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
Capitol Indemnity Corp. v. Topolewski CA2/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capitol-indemnity-corp-v-topolewski-ca24-calctapp-2023.