CFFC2, Inc. v. Bergstrom CA4/3

CourtCalifornia Court of Appeal
DecidedMarch 14, 2023
DocketG060583
StatusUnpublished

This text of CFFC2, Inc. v. Bergstrom CA4/3 (CFFC2, Inc. v. Bergstrom CA4/3) 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
CFFC2, Inc. v. Bergstrom CA4/3, (Cal. Ct. App. 2023).

Opinion

Filed 3/14/23 CFFC2, Inc. v. Bergstrom CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

CFFC2, INC.,

Plaintiff and Appellant, G060583

v. (Super. Ct. No. 30-2019-01100021)

CONNY BERGSTROM, OPINION

Defendant and Respondent.

Appeal from a judgment of the Superior Court of Orange County, Martha K. Gooding, Judge. Affirmed. Brian C. Ostler, Sr., for Plaintiff and Appellant. Van Riper Law and David A. Van Riper for Defendant and Respondent.

The assignee of an attorney sued the attorney’s former client for unpaid legal fees. Following a bench trial, the trial court found the attorney’s violation of his duties to his client was so clear and serious it compelled forfeiture of all unpaid fees and costs. On appeal, the assignee argues the judgment was not supported by substantial evidence; we disagree. The assignee also argues the trial court erred by allowing the client to present testimony from an expert witness. We conclude the court did not err, but even assuming it did, any error was harmless because the court’s findings were fully supported without consideration of the expert’s testimony. Therefore, we affirm.

STATEMENT OF FACTS AND PROCEDURAL HISTORY Brian Ostler and the Law Offices of Brian C. Ostler, Sr., A.P.C. (collectively, Ostler) provided legal services to Bergstrom’s Children’s Stores, Inc., and 1 Karl Bergstrom, its president and one of its owners. Karl and his wife Conny Bergstrom were the trustees of the Karl A. Bergstrom and Conny R. Bergstrom 1975 Trusts, as restated in 2010 (the Bergstrom Family Trust). Karl and Conny had two children—Pierre Bergstrom and Vickie Bergstrom Katnik. In 2012, Pierre’s wife Deborah filed for dissolution of their marriage. On December 16, 2013, Ostler entered into a written fee agreement with Karl, Conny, and Bergstrom’s Children’s Stores for the provision of legal services (the fee agreement). Neither Karl nor Conny, as a trustee of the Bergstrom Family Trust, was a party to the fee agreement. One of the matters specifically referenced in the fee agreement was Pierre and Deborah’s dissolution proceeding. One of the assets at issue in the dissolution was a residence in Newport Beach (the property). The property was the subject of a quitclaim deed recorded October 28, 2011, which named Pierre, Deborah, and Karl as joint tenants. In 2013, Deborah named Karl in a joinder action in the dissolution proceeding (the joinder action). The

1 We will refer to the members of the Bergstrom family by their first names to avoid confusion; we intend no disrespect.

2 joinder action sought to determine Karl had no interest in the property, and the property was entirely held as community property of Deborah and Pierre. Deborah dismissed the joinder action against Karl in February 2014. Karl signed a quitclaim deed, which was recorded on March 25, 2014, transferring his interest in the property to the trustees of the Bergstrom Family Trust. Sometime in 2014, Ostler proposed to Karl a new legal strategy to obtain a judicial ruling on the validity of the Bergstrom Family Trust’s interest in the property by filing a quiet title action against Pierre and Deborah. Ostler sent a draft of a proposed 2 complaint to Karl on July 1, 2014, but Karl never approved it or authorized its filing. Karl passed away on August 14, 2014. Just five days after Karl’s death, Ostler met in person with Conny, Pierre, Vickie, and Vickie’s adult children. At that meeting, Conny told Ostler she did not want to continue to spend money on attorney fees and costs related to Pierre’s dissolution proceeding, and she did not want to file the new lawsuit Ostler was proposing. When Ostler suggested the quiet title action could help put Pierre in a better position (vis á vis Deborah) in the dissolution proceeding, Conny told Ostler the divorce was Pierre’s business and she did not want to be part of it. Conny liked Deborah and did not want to do anything to help Pierre at Deborah’s expense. Ostler told Conny she could not stop what Pierre and Karl had started and she should pursue the quiet title action because it was what Karl had wanted. Conny responded she was not Karl and she did not want to be involved in litigation. Ostler also told Conny she had to pursue the quiet title action

2 Several months earlier, Ostler sent Karl a proposed cross-complaint in the family law action. Karl and Conny signed a verification for this cross-complaint, which was never filed. A draft of the separate quiet title action was sent to Karl and Conny on July 1, 2014; the appellate record does not contain Karl’s verification of that complaint. The proposed family law cross-complaint is also absent from the appellate record, so we cannot determine how close it was in substance to the quiet title complaint.

3 to protect the interests of the Bergstrom Family Trust, as well as her own interest in the property. Ostler filed the quiet title action on August 29, 2014. In addition to the cause of action to quiet title, the complaint also alleged causes of action for declaratory relief and to impose an equitable lien. It was brought by Conny, individually and as trustee of the Bergstrom Family Trust, and named Pierre and Deborah as defendants. Ostler began to bill Conny directly. The October 1, 2014 bill (which covered legal services provided in August and September 2014) was for $9,998.72: $9,765 in fees and $233.72 in costs. The November 5, 2014 bill was for $2,903.82: $2,500 in fees, $5.05 in costs, and $398.77 in interest on the overdue balance. The December 6, 2014 bill was for $1,157.58: $960 in fees and $197.58 in interest. The March 4, 2015 bill was for $13,532.41: $12,412.50 in fees, $646.02 in costs, and $473.89 in interest. The May 15, 2015 bill was for $19,393.96: $18,842.50 in fees, $203.51 in costs, and $347.95 in interest. The July 6, 2015 bill was for $21,140.20: $20,395 in fees, $355.05 in costs, and $390.15 in interest. The September 7, 2015 bill was for $55,000.24: $51,855 in fees, $2,460.68 in costs, and $684.56 in interest. The October 22, 2015 bill was for $19,853.68: $18,115 in fees, $724.69 in costs, and $1,013.99 in interest. The June 20, 2016 bill was for $22,964.93: $15,772.50 in fees, $588.13 in costs, and $6,604.30 in interest. The final bill from Ostler to Conny, dated March 12, 2018, did not include any new charges for fees or costs, but showed a balance due of $144,561.93. Because of the size of the bills, in late 2014 Conny asked to make monthly payments of $5,000 on any amounts billed. Ostler agreed, and from November 2014 through September 2015, Conny paid at least $5,000 per month to Ostler. Vickie called Ostler in September 2015 at Conny’s request. Conny felt Ostler was not listening to her when she continued to say she wanted the quiet title litigation to end. When Vickie explained to Ostler Conny did not understand what was

4 happening and did not want to be involved in the quiet title action, Ostler became argumentative and combative and told Vickie if Conny dismissed the quiet title action, she would not get her share of the property. Ostler reiterated Conny had to pursue the litigation to preserve her share of the property. In a November 6, 2015 letter, Ostler confirmed Conny wanted to stop litigating, and was not going to pay the litigation bills any longer. Conny’s new attorney, David Van Riper, substituted into the quiet title action on January 20, 2016.

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

Related

Oasis West Realty v. Goldman
250 P.3d 1115 (California Supreme Court, 2011)
Sigerseth v. Superior Court
23 Cal. App. 3d 427 (California Court of Appeal, 1972)
Fladeboe v. American Isuzu Motors Inc.
58 Cal. Rptr. 3d 225 (California Court of Appeal, 2007)
County Sanitation District No. 2 v. County of Kern
27 Cal. Rptr. 3d 28 (California Court of Appeal, 2005)
Staub v. Kiley CA3
226 Cal. App. 4th 1437 (California Court of Appeal, 2014)
Cottini v. Enloe Medical Center
226 Cal. App. 4th 401 (California Court of Appeal, 2014)
Thompson v. Asimos
6 Cal. App. 5th 970 (California Court of Appeal, 2016)
Espinoza v. Shiomoto
10 Cal. App. 5th 85 (California Court of Appeal, 2017)
Sheppard, Mullin, Richter & Hampton, LLP v. J-M Mfg. Co.
425 P.3d 1 (California Supreme Court, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
CFFC2, Inc. v. Bergstrom CA4/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cffc2-inc-v-bergstrom-ca43-calctapp-2023.