Garcia v. Myllyla

CourtCalifornia Court of Appeal
DecidedOctober 4, 2019
DocketB292322
StatusPublished

This text of Garcia v. Myllyla (Garcia v. Myllyla) 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
Garcia v. Myllyla, (Cal. Ct. App. 2019).

Opinion

Filed 10/4/19 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION TWO

WILLIAM GARCIA et al., B292322

Plaintiffs and Respondents, (Los Angeles County Super. Ct. No. BC633915) v.

REIJO K. MYLLYLA et al.,

Defendants and Appellants.

APPEAL from a judgment of the Superior Court of Los Angeles County. Monica Bachner, Judge. Affirmed. James G. Lewis for Defendants and Appellants. Musick, Peeler & Garrett, Dan Woods; Inner City Law Center, Kimberly A. Miller, Hannah Courtney; Alder Law, Michael Alder and Alexis Gamliel for Plaintiffs and Respondents. _________________________________ Nine individual tenants (collectively, Plaintiffs) prevailed in a jury trial on claims against the former owners of an illegally operated building stemming from uninhabitable conditions in the building. The former owners, Reijo Myllyla and the Estate of Hellen Terttu Hill (collectively, Myllyla), appeal from the judgment, arguing that: (1) the jury’s award of punitive damages was not supported by the evidence and was excessive; (2) the jury’s award of noneconomic damages was not supported by the evidence; (3) the trial court should have granted a set-off to the damage award based upon amounts paid by prior settling defendants; and (4) repeated references to Myllyla as a liar during trial resulted in unfair prejudice. We reject each of Myllyla’s arguments and affirm. BACKGROUND 1. The Evidence Until February 26, 2015, Myllyla owned a two-family residential building on Hartford Avenue in Los Angeles (the Building). Although it was zoned as a duplex, Myllyla illegally rented it as 12 separate units. Only two units in the Building had kitchens, and there were only two community rest rooms. There was evidence that human waste had been thrown out of the Building and had collected on the back. There were openings that permitted rodents and vermin to enter. Steps to the Building were infected with dry rot and were close to collapsing. The Building contained illegal electrical work. An inspection by Plaintiffs’ expert revealed dead and live cockroaches throughout the Building and dirty bathrooms. As discussed further below, each of the Plaintiffs testified about his or her experiences in the building, which included

2 cockroaches, bed bugs and other vermin; mold; and filthy conditions in common areas. Tenants were forced to wash their dishes outside the Building. There were several months when the Building had no power or water and residents had to purchase buckets of water from Myllyla’s daughter. One tenant had a cockroach removed from her ear.1 Records from the City of Los Angeles Housing Department (Department) showed that Myllyla repeatedly and falsely told the Department that the Building was occupied only by family members. The Department does not have jurisdiction to inspect or respond to complaints about such a building. Myllyla admitted that he lied to the Department about the Building’s occupancy to avoid inspection. He acknowledged that he operated the Building illegally for 13 years because he could not bring it up to code. 2. Proceedings Below Plaintiffs’ first amended complaint (Complaint) named Myllyla along with the current owners who purchased the Building from Myllyla in February 2015. The current owners settled and were dismissed in January 2018. The claims against Myllyla were tried to a jury in a bifurcated proceeding in April and May 2018. The jury returned a special verdict in favor of each of the Plaintiffs on each plaintiff’s claims for negligence; breach of implied warranty of habitability; premises liability; negligent failure to provide

1 Although this incident and the months without water apparently occurred before the period for damages permitted by the statute of limitations, as discussed below the jury could have reasonably found that prior traumatic experiences in the Building made Plaintiffs more sensitive to problems that continued into the statutory period.

3 habitable premises; breach of implied covenant of quiet enjoyment; intentional infliction of emotional distress; and nuisance. The jury awarded economic damages in the form of rent abatement to each plaintiff in amounts ranging from $0 to $7,000, and awarded noneconomic damages for each plaintiff of either $10,000 or $15,000. The jury also found that Myllyla engaged in conduct amounting to malice, oppression or fraud. Following the second phase of the bifurcated trial, the jury awarded each plaintiff $95,000 in punitive damages. DISCUSSION 1. The Punitive Damage Awards Were Proper A. Myllyla forfeited his argument that Plaintiffs failed to introduce evidence of his net worth Myllyla argues that the punitive damage awards were improper because Plaintiffs did not prove Myllyla’s net worth. The record shows that Plaintiffs were excused from this requirement because Myllyla refused to produce evidence of his financial condition. A plaintiff who seeks punitive damages ordinarily must introduce evidence of a defendant’s net worth. (Adams v. Murakami (1991) 54 Cal.3d 105.) This rule is based on the fact that “[a] reviewing court cannot make a fully informed determination of whether an award of punitive damages is excessive unless the record contains evidence of the defendant’s financial condition.” (Id. at p. 110.) That is because whether a punitive damage award “ ‘exceeds the level necessary to properly punish and deter’ ” depends upon a particular defendant’s financial circumstances. (Ibid., quoting Neal v. Farmers Ins. Exchange (1978) 21 Cal.3d 910, 928.)

4 However, a defendant who thwarts a plaintiff’s ability to meet this obligation may forfeit the right to complain about the lack of evidence of his or her financial condition. In Mike Davidov Co. v. Issod (2000) 78 Cal.App.4th 597, the plaintiff prevailed on its claim for fraud following a court trial. The trial court then ordered the defendant to produce documents concerning his net worth for a hearing on punitive damages. The defendant did not comply with the order. (Id. at pp. 603–604.) The appellate court held that the defendant was therefore estopped from objecting to the absence of evidence of his financial condition. (Id. at p. 600.) The court concluded: “By his disobedience of a proper court order, defendant improperly deprived plaintiff of the opportunity to meet his burden of proof on the issue. Defendant may not now be heard to complain about the absence of such evidence.” (Id. at p. 609.) Similarly, in Corenbaum v. Lampkin (2013) 215 Cal.App.4th 1308 (Corenbaum), the court held that a defendant was estopped from arguing that the evidence of his financial condition was insufficient to support a punitive damage award because he failed to comply with a subpoena requiring him to produce records of his financial condition at trial. (Id. at pp. 1337–1338.) The court explained that “for purposes of requiring attendance and the production of documents at trial, a subpoena is equivalent to a court order.” (Id. at p. 1338.) In light of the defendant’s failure to comply with the subpoena, the court concluded that “he is estopped from challenging the punitive damage awards based on lack of evidence of his financial condition or insufficiency of the evidence to establish his ability to pay the amount awarded.” (Ibid.; see Fernandes v. Singh (2017) 16 Cal.App.5th 932, 942 [“A defendant is in the best position to

5 know his or her financial condition, and cannot avoid a punitive damage award by failing to cooperate with discovery orders”].)2 The same rule applies here.

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Related

Corenbaum v. Lampkin
215 Cal. App. 4th 1308 (California Court of Appeal, 2013)
Neal v. Farmers Insurance Exchange
582 P.2d 980 (California Supreme Court, 1978)
Adams v. Murakami
813 P.2d 1348 (California Supreme Court, 1991)
Bowers v. Bernards
150 Cal. App. 3d 870 (California Court of Appeal, 1984)
Carr v. Cove
33 Cal. App. 3d 851 (California Court of Appeal, 1973)
Amoco Chemical Co. v. Certain Underwriters at Lloyd's of London
34 Cal. App. 4th 554 (California Court of Appeal, 1995)
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92 Cal. Rptr. 2d 897 (California Court of Appeal, 2000)
Cassim v. Allstate Insurance
94 P.3d 513 (California Supreme Court, 2004)
Bermudez v. Ciolek
237 Cal. App. 4th 1311 (California Court of Appeal, 2015)
Hellam v. Crane Co.
239 Cal. App. 4th 851 (California Court of Appeal, 2015)
Sanchez v. Kern Emergency Medical Transportation Corp.
8 Cal. App. 5th 146 (California Court of Appeal, 2017)
People v. Bassett
443 P.2d 777 (California Supreme Court, 1968)
Bickel v. City of Piedmont
946 P.2d 427 (California Supreme Court, 1997)
Stewart v. Union Carbide Corp.
190 Cal. App. 4th 23 (California Court of Appeal, 2010)
People v. Bryant
191 Cal. App. 4th 1457 (California Court of Appeal, 2011)
Fernandes v. Singh
224 Cal. Rptr. 3d 751 (California Court of Appeals, 5th District, 2017)
Morgan v. Davidson
240 Cal. Rptr. 3d 235 (California Court of Appeals, 5th District, 2018)

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Garcia v. Myllyla, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garcia-v-myllyla-calctapp-2019.