Dakota Payphone, LLC v. Alcaraz

192 Cal. App. 4th 493, 121 Cal. Rptr. 3d 435, 2011 Cal. App. LEXIS 126
CourtCalifornia Court of Appeal
DecidedFebruary 2, 2011
DocketNo. E047943
StatusPublished
Cited by63 cases

This text of 192 Cal. App. 4th 493 (Dakota Payphone, LLC v. Alcaraz) 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
Dakota Payphone, LLC v. Alcaraz, 192 Cal. App. 4th 493, 121 Cal. Rptr. 3d 435, 2011 Cal. App. LEXIS 126 (Cal. Ct. App. 2011).

Opinion

Opinion

RAMIREZ P. J.

Defendant Hugo Alcaraz (Alcaraz) appeals from the trial court’s entry of a default judgment against him, claiming that the default should be set aside because it was obtained through the mistake, fraud and [498]*498collusion of his former attorneys. (Code Civ. Proc.,1 § 473, subd. (b).) Plaintiff Dakota Payphone, LLC (Dakota), appeals from the trial court’s order purporting to grant, in part, Alcaraz’s motion for a new trial, asserting that the trial court had lost jurisdiction to make such a ruling. Dakota also asserts that Alcaraz’s appeal is untimely and should be dismissed. We agree with Dakota’s assertion and dismiss Alcaraz’s appeal as untimely.2 Further, although we also agree with Dakota that the trial court had lost jurisdiction to rule upon a motion for a new trial, we hold that it retained the authority to correct the void portion of its judgment. We therefore construe the trial court’s December 29, 2008, order as an order modifying a partially void judgment and affirm it as such.

Facts and Procedural History

Dakota’s verified third amended complaint alleged that Dakota entered into 330 purchase agreements with Alcaraz and other defendants not party to this appeal (collectively Defendants). These agreements stated that Dakota would buy approximately 5,836 pay phones from Defendants. Defendants agreed to lease the pay phones from Dakota in what is known as a leaseback (see Rev. & Tax. Code, § 6010.65) and place them in public locations. Alcaraz agreed to personally guarantee each of the 330 agreements.

In its complaint, Dakota alleges causes of action against Defendants for (1) breach of contract, (2) fraud, (3) conversion, (4) an accounting, (5) a constructive trust, and (6) injunctive relief. Defendants allegedly breached each of the agreements in January 2006, when they failed to make their lease payments for the 5,836 pay phones. The unpaid amounts totaled $461,044. Defendants also breached the agreements by (1) entering into similar leaseback agreements with other parties, (2) intentionally failing to purchase the pay phones when the lease agreements expired, (3) intentionally failing to maintain the pay phones, (4) intentionally failing to place the pay phones in the locations designated in the agreements, (5) intentionally failing to notify Dakota of the changes in the locations of the pay phones, (6) intentionally failing to indemnify Dakota for lost equipment, and (7) failing to pay for third party bills related to the pay phones. Dakota alleged specifically against Alcaraz that he breached his guarantee to pay the monies owed, and that he was still in possession of and collecting money from pay phones that [499]*499belonged to Dakota. These breaches were alleged to have resulted in $45 million in damages to Dakota.

In its second cause of action for fraud, Dakota alleged that Alcaraz had been taking millions of dollars from the companies that were also named as defendants and knew that these companies did not have the money to make the monthly lease payments to Dakota and other investors. Alcaraz allegedly used the money provided by new investors to make monthly payments to prior investors. Dakota and other investors paid Alcaraz “millions of dollars.” Indeed, Dakota alleged that it was induced to spend $10,863,000 on pay phones as a result of Alcaraz’s fraud. In its prayer for relief, Dakota sought “damages in an amount not less than $45,000,000.”

The trial court entered a default judgment against Alcaraz on September 4, 2008, awarding Dakota $45 million in compensatory damages and specifying that $14,968,500 of that amount was based upon the fraud of Alcaraz. Notice of entry of that judgment was served on Alcaraz on September 8, 2008. On September 23, 2008, Alcaraz filed a timely notice of intention to move for a new trial. (§ 659 [notice of intention to move for a new trial must be filed within 15 days of the date of mailing notice of entry of judgment].) Alcaraz asserted that the damages and attorney fees awards were excessive and that Dakota failed to include a statement of damages in its third amended complaint. Dakota opposed the motion, in part based upon its assertion that the trial court lacked jurisdiction to decide the motion.

On December 29, 2008, an order of the trial court was filed purporting to grant the motion for a new trial, in part, to limit the amount of damages attributable to Alcaraz’s fraud to the amount set forth in the operative third amended complaint, and denying the motion in all other respects. An amended judgment of default was entered against Alcaraz on January 14, 2009, identical in every respect to the September 4, 2008, judgment except that the amount of the compensatory damages attributed to the fraud of Alcaraz was $10,863,000 (a reduction of $4,105,500). Notice of entry of the amended judgment was served on Alcaraz on January 16, 2009. On February 17, 2009, Alcaraz filed a notice of appeal “from the judgment entered on January 14, 2009 . . . .” On March 4, 2009, Dakota filed what it deemed to be a notice of cross-appeal, challenging the trial court’s December 12, 2008, order purporting to grant, in part, Alcaraz’s motion for a new trial.3

[500]*500Discussion

A. Disposition of the Cross-appeal

In its cross-appeal, Dakota asserts that the trial court had no jurisdiction to grant Alcaraz’s motion for a new trial. An order granting a new trial is an appealable order. (§ 904.1, subd. (a)(2), (4).) Specifically, Dakota alleges that the motion for new trial was denied by operation of law on November 7, 2008, 60 days after notice of entry of the September 4, 2008, judgment was served. (§ 660.) We agree.

The power of a trial court to rule on a motion for a new trial expires 60 days after (1) the clerk mails the notice of entry of judgment, or (2) a party serves written notice of entry of judgment on the party moving for a new trial, whichever is earlier, or if no such notice is given, then 60 days after filing of the first notice of intent to move for a new trial. (§ 660.) If the motion for a new trial is not ruled upon within the 60-day time period, then “the effect shall be a denial of the motion without further order of the court.” (§ 660.) The 60-day time limit provided in section 660 is jurisdictional. Consequently, an order granting a motion for a new trial beyond the relevant 60-day time period is void for lack of jurisdiction. (Fischer v. First Internat. Bank (2003) 109 Cal.App.4th 1433, 1450-1451 [1 Cal.Rptr.3d 162].)

Alcaraz cannot argue that he was disadvantaged by the trial court’s decision to continue the hearing on the motion for a new trial. “It is the duty of the [moving] party to be present and see that his motion for a new trial is set for hearing within the statutory [time] period. If it has been inadvertently continued by the court to a date too late under the statute the party should move the court to advance the matter on the calendar. When [the party] is guilty of lack of diligence in the prosecution and presentation of his motion, he cannot complain of the court’s inadvertence. And when counsel for both parties consent to a continuance without considering that the extension will be beyond the time the court can act on the motion, the effect is to deprive the court of the power to act. It effectively denies the motion without further order. [Citation.]” (Meskell v. Culver City Unified School Dist. (1970) 12 Cal.App.3d 815, 824 [96 Cal.Rptr. 773]

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

Related

Graiwer v. Shokrian CA2/1
California Court of Appeal, 2025
Williams v. Ali CA2/7
California Court of Appeal, 2025
Russo v. Dinneen CA4/1
California Court of Appeal, 2025
People v. Miller CA1/1
California Court of Appeal, 2025
Marriage of Vasek CA4/3
California Court of Appeal, 2025
Alafi v. Cohen
California Court of Appeal, 2024
City of Claremont v. Sandblossom CA2/1
California Court of Appeal, 2024
Marriage of Carter CA4/1
California Court of Appeal, 2024
Guardianship of Grace C. CA2/2
California Court of Appeal, 2024
O'Farrell v. City of San Diego CA4/1
California Court of Appeal, 2024
Florence v. Castell CA4/2
California Court of Appeal, 2024
Dowling v. Uriostegui CA2/7
California Court of Appeal, 2024
Rodriguez v. Rodriguez CA5
California Court of Appeal, 2024
Crokin v. Primrose CA4/3
California Court of Appeal, 2024
Moreira v. New Rez CA4/1
California Court of Appeal, 2023
Wang v. Xu CA2/5
California Court of Appeal, 2023
Turrieta v. Lyft, Inc.
California Court of Appeal, 2021

Cite This Page — Counsel Stack

Bluebook (online)
192 Cal. App. 4th 493, 121 Cal. Rptr. 3d 435, 2011 Cal. App. LEXIS 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dakota-payphone-llc-v-alcaraz-calctapp-2011.