Case v. Lazben Financial Co.

121 Cal. Rptr. 2d 405, 99 Cal. App. 4th 172, 2002 Cal. Daily Op. Serv. 5152, 2002 Daily Journal DAR 6473, 2002 Cal. App. LEXIS 4222
CourtCalifornia Court of Appeal
DecidedJune 10, 2002
DocketB143295
StatusPublished
Cited by28 cases

This text of 121 Cal. Rptr. 2d 405 (Case v. Lazben Financial Co.) 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
Case v. Lazben Financial Co., 121 Cal. Rptr. 2d 405, 99 Cal. App. 4th 172, 2002 Cal. Daily Op. Serv. 5152, 2002 Daily Journal DAR 6473, 2002 Cal. App. LEXIS 4222 (Cal. Ct. App. 2002).

Opinion

Opinion

ALDRICH, J.

The issue squarely presented in this appeal is whether Code of Civil Procedure section 1008 1 restricts a trial court, on its own motion, from reconsidering one of its interim orders. For the reasons set forth herein, we conclude that a trial court can sua sponte reconsider its own interim orders irrespective of section 1008. If interpreted to eliminate a trial court’s jurisdiction in this regard, section 1008 would materially impair and defeat a core function of the judiciary, the power to resolve specific controversies between parties, in violation of the separation of powers doctrine. Therefore, section 1008 must be interpreted as restricting only the ability of litigants to bring motions for reconsideration.

Plaintiff and appellant Charleen Case appeals from the trial court’s order dismissing her complaint against defendants and respondents Lazben Financial Company, Benjamin Deutsch, and Lawrence Deutsch (hereinafter respondents) for failure to prosecute. The trial court initially denied respondents’ motion to dismiss, but sua sponte reconsidered the issue and granted *176 the motion. Case asserts that the trial court exceeded its jurisdiction by reconsidering its order when the prerequisites of section 1008 were not met. We conclude the trial court did not exceed its jurisdiction in reconsidering its order and affirm.

Factual and Procedural Background

1. Case’s action against respondents.

On January 25, 1991, Case filed a 19-count complaint against respondents and 13 other defendants, including City Thrift and Loan Association (City Thrift). The complaint included causes of action for fraud, negligent misrepresentation, breach of fiduciary duty, breach of contract, rescission, restitution, and violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) (18 U.S.C. § 1962 (c)), all arising from Case’s investments in various real estate and other ventures. Trial was set for August 23, 1993.

On July 9, 1993, the California Commissioner of Corporations closed City Thrift. On July 15, 1993, the Federal Deposit Insurance Corporation (FDIC), as receiver for City Thrift, removed the action to the United States District Court for the Central District of California. On June 15, 1994, the parties stipulated in federal court to dismissal with prejudice of all claims against the FDIC; to dismissal with prejudice of all claims brought against the remaining defendants under RICO; and to remand of the pendent state claims to the Los Angeles County Superior Court. On June 16, 1994, Federal District Judge Manuel L. Real signed and filed the stipulation and order dismissing and remanding the case. The order remanding the case was entered in the federal docket on June 21, 1994; however, apparently due to a clerical error, it was not mailed to the superior court at that time.

According to the representations of Case’s counsel in the opposition to respondents’ motion to dismiss, in early 1997, Beigel & Sandler, P.C., the law firm representing Case at that time, liquidated. According to Case, in the fall of 1997, a former Beigel & Sandler associate took over representation of Case’s claims. He discovered that the federal court’s order remanding the matter had never been mailed to the superior court, and requested that it be forwarded to the superior court. On October 30 and December 5, 1997, the federal district court mailed certified copies of the remand order to the superior court.

A status conference was held in Los Angeles County Superior Court on January 20, 2000. Respondents indicated they would file motions to dismiss for failure to prosecute, and requested a March hearing date. At Case’s *177 counsel’s request, due to family medical concerns, the hearing on the motion to dismiss was set for April 5, 2000. On February 18 and March 9, 2000, respondents filed motions for discretionary and mandatory dismissal pursuant to sections 583.410, 583.420, 583.310, and 583.360. Case did not file oppositions. On the hearing date of April 5, 2000, Case filed an ex parte application requesting a continuance. The trial court granted the continuance to April 28, 2000, and indicated it was inclined to grant the motion to dismiss. Case subsequently filed a consolidated opposition to both motions.

2. Rulings on respondents’ motions to dismiss.

On April 28, 2000, the trial court heard and denied respondents’ motions to dismiss. 2 As to the discretionary motion to dismiss (§ 583.410), the court noted that the parties had litigated the matter for two and one-half years prior to the removal to federal court; discovery had been completed, including depositions; a discovery cutoff date had been in effect; and defendants’ motions for summary judgment had been pending when the case was removed. The court reasoned, “It’s not a kind of case where plaintiff had done nothing from the outset of the action.” The court stated it was distressed about the age of the case, but found “[tjhere appears to be some failure by [the] judicial system folks here which ... at least primarily [is] not attributable to the parties.” The court set a trial date of May 10, 2000, noting that the “five-year-rule” would run on that date. The court expressed concern that trial would commence in 12 days and stated, “[t]his is not a case that makes me real comfortable either- way.” Respondents’ counsel asserted her understanding that the matter was to be tried to the court, rather than a jury. She requested that plaintiff’s counsel identify which remaining causes of action would actually be tried.

At a May 3, 2000 conference, Case’s counsel estimated a two- to three-week jury trial; stated that he anticipated calling up to 25 witnesses; and indicated that tentatively he intended to proceed on four causes of action. The court stated, “I am actively reconsidering my denial of the motions to dismiss because this case—to slam anybody to trial, on that kind of trial, under these circumstances, underscores the motions that were made and suggests to this court that the ruling was improvident.” It explained it was “increasingly uncomfortable” with its denial of respondents’ motion and expressed concern that there was insufficient time to prepare for trial. The court indicated it was anxious to minimize prejudice to the defendants.

On May 5, 2000, Case’s counsel indicated plaintiff would proceed on seven causes of action; intended to call approximately 20 witnesses; and *178 estimated trial would require 15 days. The court again expressed concern about its denial of the motion to dismiss: “What we have here is because of this court’s ruling, unmindful as I was apparently of the consequences thereof, we have put ourselves in the position where we have to do in a week that which most lawyers do in a year, and that is prepare a somewhat sophisticated case for trial.” It explained it was “not trying to manufacture a way out.” Defense counsel argued that the lapse of time and brief period remaining to prepare for trial had irreversibly prejudiced defendants.

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Bluebook (online)
121 Cal. Rptr. 2d 405, 99 Cal. App. 4th 172, 2002 Cal. Daily Op. Serv. 5152, 2002 Daily Journal DAR 6473, 2002 Cal. App. LEXIS 4222, Counsel Stack Legal Research, https://law.counselstack.com/opinion/case-v-lazben-financial-co-calctapp-2002.