Creed-21 v. City of Wildomar

226 Cal. Rptr. 3d 532, 18 Cal. App. 5th 690
CourtCalifornia Court of Appeal, 5th District
DecidedNovember 28, 2017
DocketE066367
StatusPublished
Cited by15 cases

This text of 226 Cal. Rptr. 3d 532 (Creed-21 v. City of Wildomar) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Creed-21 v. City of Wildomar, 226 Cal. Rptr. 3d 532, 18 Cal. App. 5th 690 (Cal. Ct. App. 2017).

Opinion

MILLER, Acting P. J.

*692Plaintiff and Appellant Creed-21 appeals from the dismissal of its petition for writ of mandate and complaint for declaratory and injunctive relief under the California Environmental Quality Act (Petition). The trial court imposed an issue sanction on standing, which terminated the action, for the misuse of the discovery process in response to a motion for sanctions pursuant to Code of Civil Procedure section 2023.0301 filed by real party in interest and respondent Wal-Mart Real Estate Business Trust (Wal-Mart). We conclude the trial court did not abuse its discretion in imposing the terminating sanction.

FACTUAL AND PROCEDURAL HISTORY

A. PROCEDURAL HISTORY

1. COMPLAINT

On April 8, 2015, Creed-21, represented by the Briggs Law Corporation, specifically attorney Anthony Kim, filed its Petition. Creed-21 alleged it was a non-profit, social-advocacy organization formed and operating under the laws of California and that at least one member resided in or near defendant and respondent City of Wildomar (City).

The project being challenged was a 185,682 square foot Walmart retail complex (the Project) located in the City. On March 11, 2015, the City's council approved the Project. Creed-21 alleged that the Project violated CEQA and other laws. Creed-21 alleged against the Wal-Mart and the City *693(collectively, the Wildomar Defendants) that they failed to prepare an adequate environmental impact report and they violated the planning and zoning law within the meaning of Government Code section 65860. Creed-21 sought to stop the Wildomar Defendants from taking any action on the Project until they complied with CEQA and the planning and zoning laws.

City filed an answer to the Petition. City alleged that Creed-21 did not have standing to bring the action. The trial court set a briefing schedule with Creed-21's opening brief due December 24, 2015; the Wildomar Defendants' joint opposition brief due January 25, 2016; and Creed 21's reply brief being due on February 15, 2016.

*5352. WAL-MART'S FIRST MOTION TO COMPEL DEPOSITION AND DOCUMENT PRODUCTION

On or about November 20, 2015, Wal-Mart filed a motion to compel pursuant to section 2025.450, subdivision (a) seeking an order to have Creed-21's person most qualified (PMQ) appear for a deposition. It also sought monetary sanctions. It sought a hearing on January 5, 2016, and the deposition to take place no later than January 12, 2016. Wal-Mart alleged that Creed-21's PMQ had refused to appear for a deposition despite proper notice and without substantial justification. It could not adequately defend against Creed-21's conclusory allegation that it had standing to pursue the lawsuit without such deposition.

Wal-Mart was informed and believed that Creed-21 was a shell corporation, which consisted of two members including Richard Lawrence, who lived in San Diego. The address utilized by Creed-21 as its place of business was the Briggs Law Corporation. Creed-21 had no assets, and in prior lawsuits in which money was awarded to Creed-21, the money was given to the Briggs Law Corporation. Depending upon the testimony of the PMQ, Wal-Mart would challenge Creed-21's standing in its opposition to the Petition. Wal-Mart insisted that discovery was proper in the administrative mandamus proceeding to challenge standing. In addition, it sought all of the documents related to the corporation.

Wal-Mart had served Creed-21 with its initial deposition notice on August 25, 2015. It also requested documents pertaining to the corporation. The deposition was set for September 15, 2015, in Costa Mesa. Creed-21 objected to the deposition date, that discovery was not appropriate in a mandamus proceeding, and that the deposition location was 75 miles from the PMQ's residence. Wal-Mart sent a meet and confer letter to the Briggs Law Corporation, specifically Cory Briggs and Kim. Wal-Mart requested the PMQ's address so that a location for the deposition could be found closer to *694the PMQ's home. Wal-Mart received no response. Wal-Mart sent several emails to Kim but received no response. Wal-Mart scheduled another deposition for October 14, 2015. Creed-21 again objected on the same grounds as the first objection and advised Wal-Mart that the PMQ would not appear at the deposition. Creed-21 refused to submit the PMQ for the deposition.

Briggs responded to Wal-Mart's counsel on October 8, 2015, indicating that he had been in trial. Briggs stated that Wal-Mart was not allowed to conduct discovery and that Creed-21 had standing as a public-interest organization enforcing public duties; its membership was irrelevant; and the good standing of the corporation could be verified with the California Secretary of State. Briggs recommended letting the trial court decide the issue. He recommended that either Wal-Mart file a motion to compel, or he would file a motion for a protective order. Wal-Mart responded it would file the motion to compel.

To the motion to compel, Wal-Mart attached a reporter's transcript for case No. BC131065 in Los Angeles Superior Court, Creed-21 v. City of Glendora , of a hearing conducted on July 6, 2015. Creed-21 was represented by Briggs Law Corporation. Lawrence testified that he was the President of Creed-21. There was only one other officer in Creed-21. Briggs Law Corporation prepared all the tax returns for Creed-21. The address for Creed-21 was Briggs Law Corporation in Upland. Lawrence had no idea how many members of Creed-21 existed. Lawrence indicated Creed-21 had no money and no employees. Briggs Law Corporation fronted the money for any lawsuits it filed. It also paid any *536fees owed by Creed-21. Creed-21 had no assets.

Creed-21 filed opposition to the motion to compel the PMQ's deposition. Creed-21 alleged there were additional members of the corporation. Further, there was no discovery allowed in administrative mandamus proceedings; the proceedings were limited to the administrative record, which is the only evidence relevant to determine the issue of whether the law was followed. Creed-21 argued that even issues of standing did not require discovery. The Petition had properly alleged there were members in Wildomar and there was no further issue as to standing. Even considering Lawrence's testimony in a separate proceeding, Lawrence acknowledged other members in Creed-21 but did not know their names.

Wal-Mart filed its reply. It advised the trial court it only sought to conduct discovery to determine standing and nothing in Creed-21's opposition negated that Wal-Mart could conduct discovery.

*695The matter came on for hearing on January 5, 2016. The trial court issued a tentative ruling that Creed-21 was to produce the PMQ for deposition and produce all requested documents within 10 court days of the ruling. Wal-Mart was awarded $3,000 in attorney fees and costs.

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Bluebook (online)
226 Cal. Rptr. 3d 532, 18 Cal. App. 5th 690, Counsel Stack Legal Research, https://law.counselstack.com/opinion/creed-21-v-city-of-wildomar-calctapp5d-2017.