Floyd v. Wilson CA2/1

CourtCalifornia Court of Appeal
DecidedDecember 17, 2020
DocketB301997
StatusUnpublished

This text of Floyd v. Wilson CA2/1 (Floyd v. Wilson CA2/1) 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
Floyd v. Wilson CA2/1, (Cal. Ct. App. 2020).

Opinion

Filed 12/17/20 Floyd v. Wilson CA2/1 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 ONE

DAN BRYAN FLOYD, as Trustee, B301997 etc., (Los Angeles County Plaintiffs and Appellants, Super. Ct. No. PC053448)

v.

ELIZABETH WILSON,

Defendant and Respondent.

APPEAL from an order and a judgment of the Superior Court of Los Angeles County, Stephen P. Pfahler, Judge. Affirmed. Law Offices of James W. Bates and James W. Bates for Plaintiffs and Appellants. Lex Law Corp. and Lisa Miller for Defendant and Respondent. ____________________________ This case involves principles evocative of a law student’s first lessons. For example, “[a] summons is the process by which a court acquires personal jurisdiction over a defendant in a civil action.” (MJS Enterprises, Inc. v. Superior Court (1984) 153 Cal.App.3d 555, 557.) “[C]ompliance with the statutory procedures for service of process is essential to establish personal jurisdiction. [Citation.] Thus, a default judgment entered against a defendant who was not served with a summons in the manner prescribed by statute is void.” (Dill v. Berquist Construction Co. (1994) 24 Cal.App.4th 1426, 1444 (Dill).) A trial court may set aside a default judgment that is void due to improper service. (Ellard v. Conway (2001) 94 Cal.App.4th 540, 544.) It is undisputed that plaintiffs Loretta M. Coha (Coha) and Equity Trust Company (Equity) did not serve defendant Elizabeth Wilson (Wilson) at the correct address in August 2012.1 In April 2019, the trial court granted Wilson’s motion to quash service of summons and simultaneously vacated the default judgment previously entered against Wilson based on that improper service. Shortly thereafter, plaintiffs served Wilson, this time at the proper address. Wilson then moved to dismiss the lawsuit because that service was outside the three-year period for service mandated by Code of Civil Procedure section 583.210, subdivision (a).2 The trial court granted the motion.

1 Coha is now deceased. Dan Bryan Floyd has substituted in as her successor in interest. 2Undesignated statutory citations are to the Code of Civil Procedure.

2 On appeal, plaintiffs argue that (1) even if they served Wilson improperly in 2012, Wilson’s purported general appearance at a debtor’s examination in January 2019 conferred personal jurisdiction over her; (2) Wilson’s motion to quash the 2012 service was untimely; and (3) the trial court erred in entertaining Wilson’s motion to quash the 2012 service and motion to dismiss for violation of the three-year rule because Wilson did not first move to vacate the default judgment. Assuming arguendo that Wilson made a general appearance at the debtor examination, it was too late to confer personal jurisdiction over her because the three-year period for service had already expired. Plaintiffs’ challenge to the timeliness of Wilson’s motion to quash incorrectly presumes that plaintiffs properly served Wilson in August 2012, which service plaintiffs acknowledge on appeal was not proper. Even if Wilson did not properly stylize her motion as a motion to vacate the default judgment, plaintiffs demonstrate no error in the trial court’s conclusion that it should vacate the default judgment. We thus affirm the judgment of dismissal.3 We also affirm the order granting Wilson’s motion to quash and vacating the default judgment.

BACKGROUND

1. Complaint On July 31, 2012, plaintiffs sued Sirius Financial, Mary Burak, Victoria Burak, and Elizabeth Wilson alleging causes of

3 The judgment dismisses only defendant Wilson. Although there were other defendants in the lawsuit, the trial court did not vacate the default judgment with respect to them.

3 action for breach of contract, fraud, and money had and received. According to plaintiffs, “Equity serves only as custodian of the assets of the account and has no discretionary authority for the management, use and disposition of such property.” Plaintiffs alleged that there was a unity in interest between Sirius, Mary Burak, Victoria Burak, and Wilson. Plaintiffs further alleged that Mary Burak represented Coha in the sale of a residential property. Mary Burak persuaded Coha to invest in a business formed by Mary and her daughters Victoria Burak and Wilson. In return for Coha’s investment, Mary Burak signed a promissory note stating that “in exchange for Equity lending Defendants two hundred seventy four thousand three hundred ninety dollars and twenty seven cents ($274,390.27) Equity will be repaid with interest from May 1, 2009 until paid, at the rate of fifteen percent (15%), per annum, payable in yearly installments of forty one thousand one hundred fifty eight dollars and zero cents ($41,158.00) beginning on May 1, 2010 and continuing until April 30, 2011 at which time the entire unpaid principal balance and accrued interest shall become due and payable in full.” (Some capitalization omitted.) Defendants never paid Coha or Equity the amounts due under the loan. Plaintiffs further alleged that defendants knew that their representations were false at the time they promised to repay the money. Plaintiffs attached to the complaint a promissory note, signed by Mary Burak on behalf of Sirius. The note provides: “Should suit be commenced or an attorney employed to enforce the payment of this note, I agree to pay such additional sum as the court may adjudge reasonable as attorney’s fees in said suit.”

4 Plaintiffs attached a proof of service for the complaint on Wilson as “substituted service” on Wilson’s mother (Mary Burak) at an address on Nevada Avenue in Chatsworth. The proof of service indicates that the process server served the complaint on August 10, 2012 and mailed the complaint to the same address the next day. On appeal, it is undisputed that Wilson did not live at the Chatsworth address at the time the process server served her there.

2. Entry of default In November 2012, plaintiffs requested the entry of a default judgment. The trial court entered judgment by default in the amount of $448,255.65. The judgment was against all defendants including Wilson.

3. Wilson is served with notice to appear at a debtor’s examination and appears at the debtor’s examination On September 24, 2018, plaintiffs filed an order for Wilson to appear at a debtor’s examination. Plaintiffs served the order on Wilson on December 23, 2018 at her personal residence in Van Nuys, not at the Chatsworth location where plaintiffs had served the summons and complaint. Wilson appeared in propria persona for the debtor’s examination on January 11, 2019. No reporter was present. A minute order states: “The matter is called for hearing. [¶] Elizabeth Wilson is duly sworn and examination begins. [¶] The matter is continued for further examination by stipulation of all parties to February 8, 2019 . . . .”

5 4. Motion to quash service of summons On March 27, 2019, Wilson, now represented by counsel, filed a motion to quash service of summons. Wilson argued that the default judgment against her was predicated on substituted service on August 11, 2012. Wilson argued that she had not lived at the address where substitute service was made since April 1, 2000. Wilson stated that she was not aware of the lawsuit or the default judgment until she was served with a copy of an order of appearance for a debtor’s examination in December 2018. Wilson argued that because service of the summons was improper, the court did not have jurisdiction over her.

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Bluebook (online)
Floyd v. Wilson CA2/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/floyd-v-wilson-ca21-calctapp-2020.