filed:

CourtCalifornia Court of Appeal
DecidedApril 20, 2023
DocketB320824
StatusUnpublished

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Bluebook
filed:, (Cal. Ct. App. 2023).

Opinion

Filed: 4/20/23 Harris v. Gilliam CA2/7 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

LYDIA HARRIS, B320824

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC268857) v.

KEVIN GILLIAM,

Defendant;

WASSERMAN, COMDEN & CASSELMAN,

Third Party Claimant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, David Sotello, Judge. Affirmed. Dermot Givens for Plaintiff and Appellant. Law Offices of Peter Q. Ezzell and Nancy Lucas Ezzell for Third Party Claimant and Respondent. _______________________________ Lydia Harris and her wholly owned record company, New Image Media Corp., represented by the law firm then-named Wasserman, Comden, Casselman & Pearson, LLP (Wasserman firm), obtained a default judgment for $107 million against Marion “Suge” Knight and Death Row Records in March 2005 based on Harris’s allegation she had been the victim of a conspiracy to deprive her of a 50 percent ownership interest in Death Row Records. Seventeen years later, on March 14, 2022, Harris, represented by Dermot Givens, Knight and Death Row Records’ former counsel in the litigation, moved pursuant to Code 1 of Civil Procedure section 473, subdivision (d), to set aside as void the judgment entered in her favor. Harris contended the superior court lacked jurisdiction over her 2002 lawsuit because the claims asserted were an asset of her bankruptcy estate and could only have been pursued by the bankruptcy trustee in federal bankruptcy court—an argument previously rejected on multiple occasions because the bankruptcy trustee had ratified the 2005 judgment through settlements, approved by the bankruptcy court, with Knight’s and Death Row Records’ bankruptcy estates. The court denied Harris’s motion, finding nothing in Harris’s papers that indicated those prior rulings were incorrect. We affirm.

1 Statutory references are to this code unless otherwise stated.

2 FACTUAL AND PROCEDURAL BACKGROUND 1. Harris’s Bankruptcy Proceedings Death Row Records was founded in 1991 by, among others, 2 Knight and Harris’s former husband, Michael Harris. Harris on May 17, 1996 filed a voluntary petition in bankruptcy court under chapter 7 of title 11 of the United States Code. She did not list as an asset her claimed 50 percent ownership interest in Death Row Records. Harris was denied a discharge on July 21, 1997, and the case was closed without administration of any assets on December 15, 1999. 2. The 2002 Death Row Litigation, Default Judgment, Secret Partial Settlement and the Attorney Lien Litigation Harris and the Wasserman firm entered into a contingency fee retainer agreement in January 2002 providing the law firm would receive 40 percent of any recovery from Harris’s lawsuit asserting her ownership interest in Death Row Records. The lawsuit was filed in February 2002 against Knight, Death Row Records and others (Death Row litigation). After striking the answer of Knight and Death Row Records for a series of discovery violations, the trial court entered their default and on March 9, 2005, following a prove-up hearing, a judgment in favor of Harris and New Image Media and against Knight and Death Row Records for $107 million ($45 million for economic damages,

2 Lydia and Michael Harris’s marriage was dissolved in 2005.

3 $2 million for noneconomic damages and $60 million for punitive 3 damages). No appeal was taken from the judgment. Harris discharged the Wasserman firm on May 19, 2005, indicating on her substitution of counsel form that she would be representing herself in the Death Row litigation. The Wasserman firm filed a notice of attorney fee lien the same day. The following week Knight, acting through attorney Givens, paid Harris $1 million ($10,000 on May 20 and $990,000 on May 27, 2005) in (partial) satisfaction of the $107 million judgment in the Death Row litigation. The Wasserman firm contended in a lawsuit filed against Harris, Givens and others (Wasserman, Comden, Casselman & Pearson, LLP v. Harris (Super. Ct. L.A. County, 2005, No. BC340196) (attorney lien litigation)) that it was unaware of the payment to Harris when made and that, in providing the payment, Givens had ignored the Wasserman firm’s attorney fee lien and interfered with its right to collect fees pursuant to its retainer agreement with Harris. Following a bench trial in July 2007 in the attorney lien 4 litigation, the court found the Wasserman firm’s lien was valid and the firm was entitled to its lien on any recovery in the Death Row litigation. The court further found that Givens, aware of the

3 Prior to the default and default judgment, the court had entered judgment in favor of Interscope Records and two of its executives, named as defendants by Harris, after granting their motion for summary judgment. We affirmed that judgment on appeal. (Harris v. Interscope Records (June 9, 2004, B166253) [nonpub. opn.].) 4 Prior to the bench trial the Wasserman firm settled its claims with Harris. Its claims against defendants other than Givens were severed due to pending bankruptcy proceedings.

4 lien, “intentionally and with malicious intent to deprive [the Wasserman firm] of [its] earned attorney fees, unethically ignored the fee lien while lying to Ms. Harris that [the Wasserman firm] was not entitled to [its] lien and saying ‘obviously we won’t be paying them any money.’” After denying Givens’s motion for a new trial, which argued the judgment in the Death Row litigation and the Wasserman firm’s retainer agreement were invalid because the bankruptcy court had exclusive jurisdiction over Harris’s claim to an ownership interest in Death Row Records, the trial court on April 30, 2008 entered judgment awarding the Wasserman firm $805,752 in compensatory damages and $250,000 in punitive damages against Givens. Givens did not appeal the judgment. Beginning in November 2007, following the bench trial in the attorney lien case, and continuing through mid-2008, Givens filed a series of motions to intervene and to set aside the judgment in the Death Row litigation on which the Wasserman firm’s tort claims against him were based. Givens argued the Harris bankruptcy proceeding created a “judicial estoppel” that precluded the superior court’s exercise of jurisdiction over 5 Harris’s claims. On June 25, 2008 the Harris bankruptcy trustee, who had been reappointed after learning of the 2005 judgment in the Death Row litigation, filed an opposition to the last of Givens’s successive motions to intervene. In addition to arguing that Givens, as a third party stranger to the litigation, had no

5 As a condition to entering settlement discussions in 2005, Givens’s clients, Knight and Death Row Records, waived their right to attack the judgment.

5 standing to attack the judgment, the trustee explained that approximately $50 million of the $107 million judgment resulted from post-petition claims as to which Harris was the sole real party in interest: “Had [Harris] listed the pre-petition claim as an asset, this action would still have proceeded. It would likely have been prosecuted jointly by [Harris] (as owner of the post- petition claims) and the Trustee (as owner of the pre-petition claims) as co-plaintiffs[,] and there is no reason to believe the result would have been any different.” The trustee noted that a tentative agreement had been reached between Harris and the trustee as to their respective interests in the judgment.

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