Farhoomand v. Caine CA4/1

CourtCalifornia Court of Appeal
DecidedJune 25, 2015
DocketD064302
StatusUnpublished

This text of Farhoomand v. Caine CA4/1 (Farhoomand v. Caine CA4/1) 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
Farhoomand v. Caine CA4/1, (Cal. Ct. App. 2015).

Opinion

Filed 6/25/15 Farhoomand v. Caine CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

KAVEH S. FARHOOMAND, D064302

Plaintiff, Cross-defendant and Respondent, (Super. Ct. No. v. 37-2011-00050839-CU-HR-NC)

JANET JUSTIN CAINE,

Defendant, Cross-complainant and Appellant.

APPEAL from a judgment of the Superior Court of San Diego County, Earl H.

Maas III, Judge. Affirmed in part, reversed in part, and remanded with directions.

Fransen and Molinaro and Nathan W. Fransen for Defendant, Cross-complainant

and Appellant.

Law Offices of Linda J. Alexander and Linda Joyce Alexander, Paul Marion

Grinvalsky; Lotz, Doggett & Rawers and Jeffrey S. Doggett for Plaintiff, Cross-

defendant and Respondent. Defendant, cross-complainant and appellant Janet Justin Caine appeals from a

judgment entered in favor of plaintiff, cross-defendant and respondent Kaveh S.

Farhoomand following a jury trial on Farhoomand's operative complaint and Caine's

operative cross-complaint arising out of a real estate transaction between them, the

surrounding circumstances of which were highly contested at trial. By special verdicts

the jury made numerous factual findings accepting Farhoomand's claims and rejecting

Caine's, resulting in a judgment in Farhoomand's favor in which the trial court found in

part that Farhoomand was the prevailing party and ordered Caine to turn over a deed she

had executed granting the subject property to Farhoomand. Thereafter, the court ordered

Caine to pay cost-of-proof sanctions under Code of Civil Procedure1 section 2033.420,

subdivision (b)(3), and entered an amended judgment awarding those sanctions, costs and

attorney fees, as well as declaring the property's purchase price to be $525,000.

On appeal, Caine contends: (1) the court abused its discretion by excluding under

Evidence Code sections 350 and 352 testimony and evidence that assertedly showed

Farhoomand's cultivation of marijuana at the property; (2) the court lacked jurisdiction to

enter the amended judgment declaring the property's purchase price; and (3) the court

erred by awarding cost-of-proof sanctions after she had filed her notice of appeal and also

abused its discretion by including a substantial attorney fee award in connection with

those sanctions. We agree the trial court lacked jurisdiction to amend the judgment to

include the property's purchase price. We reverse that portion of the judgment and

1 Statutory references are to the Code of Civil Procedure unless otherwise specified. 2 remand the matter with instructions that the court modify it to omit that declaration. In

all other respects, we affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

Farhoomand and Caine's Relationship

Farhoomand is a physician in internal medicine with a private practice in

Oceanside, California. Caine and her husband maintained multiple residences in Nevada

and California. In 2007, another physician referred Caine to Farhoomand and

Farhoomand began treating Caine's husband, who was then gravely ill with various

chronic conditions. Given his severe condition and because Caine requested it,

Farhoomand began making house visits to Caine's husband at their Oceanside residence,

and continued to treat him there and in the hospital until he died in March 2008. On two

occasions during this time, Caine stuffed a $1000 check into Farhoomand's pocket and

insisted he take it as a gift or tip, telling him she would be offended if he did not.

Farhoomand and Caine eventually became close friends: Farhoomand took to calling her

"Aunt Janet" as did other friends of Caine's, and Caine referred to Farhoomand as her

"nephew." Eventually Caine asked Farhoomand to become her physician, and he saw her

four times in mid-2008 and early 2009. In late 2008, Farhoomand's marriage was

deteriorating and Caine was still grieving her husband's death. They began having dinner

together and talked increasingly over the phone until they spoke once a day, treating each

other as family. They both expressed love for each other as friends.

In September 2008, Caine offered to lend Farhoomand $50,000 and he executed a

promissory note payable "on demand" by Caine for the monies, which Farhoomand used

3 to pay credit card debt from his marriage. Caine then inserted herself into Farhoomand's

business and affairs, telling him he had helped her husband, he was her "project," and it

was now her place to "straighten out [his] life."2 Thereafter at various times Caine lent

Farhoomand additional sums of money and helped him with his finances as well as the

disposition of Farhoomand's home following his divorce. Farhoomand began to repay

Caine in June 2009.

In the spring of 2009, Caine and her realtor began looking for a house for

Farhoomand to purchase. Caine, herself a licensed real estate agent in California, told

Farhoomand it would be an investment for her and beneficial to him in that they would

consolidate his preexisting debts to her in a mortgage, and give him a better interest rate

than his old house and her a better rate than a bank. Eventually, she located a house on

Juniper Lane (the Juniper property) and closed escrow in July 2009, sending Farhoomand

a card on the day escrow closed reading, " 'Hope your new address . . . [¶] . . . [¶] . . .

Feels more like home every day. Congratulations.' " In it, she handwrote a note telling

Farhoomand to "enjoy your new life" and asking him not to bring physical or mental "

'baggage . . . into your new home.' " Caine's realtor at the time noted that Caine was

buying the house for her "nephew," who the realtor understood was Farhoomand.

2 Farhoomand testified that Caine "told me that she wanted to help me, straighten me out financially after the divorce. She said that she's a business women and she's savvy and that it would be therapeutic for her to make me a project"; that it was "good for her to do" that. Farhoomand testified, "We were good friends, so I trusted her. She said that she was—she had done real estate for many, many years. And she also said that it was good for her. It was therapeutic for her." In deposition testimony admitted at trial, Caine testified that if she could help Farhoomand she would do it, that she was alone and depressed and it was like therapy to her. 4 Caine told Farhoomand she would handle the arrangements and documentation.

She took him to a document center where Caine signed a grant deed conveying the

Juniper property to Farhoomand, and Farhoomand signed a note secured by a deed of

trust, both prepared by broker and notary Doreen Kessinger. Kessinger also prepared and

certified a preliminary change of ownership report, signed by Farhoomand and initialed

by Caine, indicating the transaction was a purchase and that Caine was transferring 100

percent of the interest in the Juniper property to Farhoomand via a $605,000 loan

"[c]arried by seller" secured by a first deed of trust at 5.5 percent interest for a 30-year

term.

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