Craig v. Saddle Ranch Chop House CA2/7

CourtCalifornia Court of Appeal
DecidedAugust 20, 2014
DocketB251014
StatusUnpublished

This text of Craig v. Saddle Ranch Chop House CA2/7 (Craig v. Saddle Ranch Chop House CA2/7) 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
Craig v. Saddle Ranch Chop House CA2/7, (Cal. Ct. App. 2014).

Opinion

Filed 8/20/14 Craig v. Saddle Ranch Chop House CA2/7 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 SEVEN

DEON CRAIG, B251014

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. EC058553) v.

SADDLE RANCH CHOP HOUSE, LLC,

Defendant and Respondent.

APPEAL from an order of the Superior Court of Los Angeles County, Samantha P. Jessner and Laura A. Matz, Judges. Affirmed. O’Neil & Matusek and Henry John Matusek II, for Plaintiff and Appellant Deon Craig. Collins Collins Muir + Stewart, Melinda W. Ebelhar and Edward J. Riffle for Defendant and Respondent, Saddle Ranch Chop House, LLC. _____________ Deon Craig appeals the trial court’s order granting the motion of Saddle Ranch Chop House, LLC, pursuant to Code of Civil Procedure section 473, subdivision (d),1 to vacate the default and default judgment entered in favor of Craig, as well as the court’s order imposing a $1,000 penalty on Saddle Ranch, payable to Craig or his attorney, pursuant to section 473, subdivision (c)(1)(A), rather than awarding actual attorney fees and costs. We affirm. FACTUAL AND PROCEDURAL BACKGROUND 1. Craig’s Personal Injury/Premises Liability Lawsuit In a Judicial Council form complaint filed May 25, 2012, Craig alleged he was injured on October 10 or 11, 2010 while a customer at a restaurant in Universal City owned by Saddle Ranch, a limited liability company, when the chair in which he was sitting collapsed.2 The complaint did not set forth the amount of damages sought. Prior to filing the lawsuit personnel from the law firm representing Craig checked the California Secretary of State’s website and learned Saddle Ranch’s agent for service of process was Russ Cashdan, an attorney, with a street and floor address in an office tower in Century City. The summons and complaint were personally served on Cashdan on June 12, 2012 at his law firm in Century City. Saddle Ranch did not respond to the complaint. 2. The Requests for Entry of Default and the Default Judgment Craig’s counsel filed a request for entry of default on August 10, 2012. The request was served by mail directed to Saddle Ranch (not Cashdan) at the street address for the office tower listed for Cashdan but without his name, the specific floor identified

1 Statutory references are to the Code of Civil Procedure unless otherwise indicated. 2 Saddle Ranch has stated the Universal City restaurant is independently owned and operated by REA 2003-1, LLC, pursuant to a license from Saddle Ranch. According to a declaration from Saddle Ranch’s general counsel, the company has no interest in REA 2003-1, LLC.

2 on the Secretary of State’s website or the name of his law firm. The default was entered the same day. While preparing the request for entry of default counsel realized no statement of damages had been served as required by section 425.11. Accordingly, a statement of damages was prepared, reflecting a prayer for general damages (pain and suffering and mental distress) of $1 million and special damages of $50,000 for current estimated medical expenses, $100,000 for future medical expenses and $100,000 for future lost earnings.3 On August 16, 2012 the process server for Craig’s attorney purported to effect substituted service of the statement of damages, together with another copy of the summons and complaint, by leaving them at the front desk of Cashdan’s law firm with “Julio Rodriguez,” an individual who, according to the process server, “appeared to be the person in charge,” followed by mailing a set of the documents to the office address. On October 3, 2012 Craig filed a “stipulation,” signed only by his counsel, to set aside the default entered August 10, 2012 due to the failure to provide an adequate statement of damages. The court granted the request. On October 24, 2012 a new request for entry of default was filed, served again by mail directed to Saddle Ranch at Cashdan’s business address without his name, specific floor or the name of his law firm. A default prove-up hearing was held April 16, 2013 at which Craig testified. On May 1, 2013 the court entered a judgment of $468,670.50 against Saddle Ranch. Craig’s counsel has explained he first learned that Cynthia Gillette, Saddle Ranch’s general counsel, had replaced Cashdan as the company’s agent for service of process during its research for the collection process immediately following entry of judgment. Craig’s memorandum of costs was served on Gillette at her address in Carlsbad, California, as well as mailed to the company’s headquarters address, in May 2013.

3 The nature of Craig’s alleged injuries from the collapsed chair is not disclosed in the record on appeal.

3 3. The Motion To Vacate the Default and Default Judgment On June 12, 2013 Saddle Ranch moved for an order vacating the default and default judgment based in part on miscommunications between it and its insurance company concerning the handling of the lawsuit and on the ground it was never served with a proper statement of damages and was unaware that a default and default judgment had been entered until it received the cost memorandum in May 2013. In her declaration in support of Saddle Ranch’s motion, Gillette stated she had received the original summons and complaint from Cashdan on June 13, 2012. Gillette forwarded the documents to Saddle Ranch’s insurance broker the same day. Until delivery of a notice of case reassignment in early April 2013—the first case document Saddle Ranch had received since the summons and complaint—Gillette believed the lawsuit was being properly handled by its insurer, Liberty International Underwriters. Gillette also described some confusion whether the incident had occurred at the Saddle Ranch location on the Sunset Strip, which is a restaurant owned by a sister company, or at the location in Universal City, which is independently owned and operated by a licensee of Saddle Ranch. Although now aware the lawsuit was still pending, Gillette did not learn a default had been entered until she was served directly by Craig with the postjudgment memorandum of costs. Saddle Ranch’s motion explained that Cashdan had been replaced by Gillette as its agent for service of process as of June 18, 2012, as reflected in a Statement of Information (Limited Liability Company) filed that date with the Secretary of State. (A copy of the document was provided as an exhibit with Saddle Ranch’s reply memorandum in support of its motion.) Accordingly, Saddle Ranch argued the attempted service of the statement of damages was ineffective, and the resulting default and default judgment were void. In addition, Cashdan submitted a declaration asserting no individual named Julio Rodriguez worked at his law firm during 2012 and declaring, “[b]ased on my personal knowledge, I never received any Request for Entry of Default” in the case.

4 4. Craig’s Opposition; the Court’s Order Granting the Motion Craig opposed the motion, arguing Saddle Ranch had not demonstrated excusable neglect or mistake for failing to answer the complaint (suggesting Saddle Ranch knew its insurer had declined to handle the action) and, in addition, the motion under section 473, subdivision (b), filed more than six months after entry of the default, was untimely. Craig also argued Cashdan’s actual authority to receive service of process continued through the date of the substituted service in August 2012 in the absence of any notice from Saddle Ranch that his authority had been revoked.

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

Related

Varjabedian v. City of Madera
572 P.2d 43 (California Supreme Court, 1977)
Pasadena Medi-Center Associates v. Superior Court
511 P.2d 1180 (California Supreme Court, 1973)
Schwab v. Rondel Homes, Inc.
808 P.2d 226 (California Supreme Court, 1991)
Reno v. Baird
957 P.2d 1333 (California Supreme Court, 1998)
Burr v. Capital Reserve Corp.
458 P.2d 185 (California Supreme Court, 1969)
Sakaguchi v. Sakaguchi
173 Cal. App. 4th 852 (California Court of Appeal, 2009)
Strathvale Holdings v. E.B.H.
25 Cal. Rptr. 3d 372 (California Court of Appeal, 2005)
Dietz v. Meisenheimer & Herron
177 Cal. App. 4th 771 (California Court of Appeal, 2009)
TRACKMAN v. Kenney
187 Cal. App. 4th 175 (California Court of Appeal, 2010)
Schwab v. Southern California Gas Co.
8 Cal. Rptr. 3d 627 (California Court of Appeal, 2004)
Summers v. McClanahan
44 Cal. Rptr. 3d 338 (California Court of Appeal, 2006)
Locke v. Warner Bros., Inc.
57 Cal. App. 4th 354 (California Court of Appeal, 1997)
Dyna-Med, Inc. v. Fair Employment & Housing Commission
743 P.2d 1323 (California Supreme Court, 1987)
Associated Creditors' Agency v. Davis
530 P.2d 1084 (California Supreme Court, 1975)
Rappleyea v. Campbell
884 P.2d 126 (California Supreme Court, 1994)
Johnson v. Greenelsh
217 P.3d 1194 (California Supreme Court, 2009)
Ramos v. Homeward Residential, Inc.
223 Cal. App. 4th 1434 (California Court of Appeal, 2014)
Hill v. Citizens National Trust & Savings Bank of Los Angeles
69 P.2d 853 (California Supreme Court, 1937)

Cite This Page — Counsel Stack

Bluebook (online)
Craig v. Saddle Ranch Chop House CA2/7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/craig-v-saddle-ranch-chop-house-ca27-calctapp-2014.