Garcia v. Poker Flat Property Owners Assn. CA3

CourtCalifornia Court of Appeal
DecidedOctober 20, 2021
DocketC087704
StatusUnpublished

This text of Garcia v. Poker Flat Property Owners Assn. CA3 (Garcia v. Poker Flat Property Owners Assn. CA3) 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. Poker Flat Property Owners Assn. CA3, (Cal. Ct. App. 2021).

Opinion

Filed 10/20/21 Garcia v. Poker Flat Property Owners Assn. CA3 NOT TO BE PUBLISHED California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published,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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 THIRD APPELLATE DISTRICT (Calaveras) ----

MARIAN GARCIA, C087704

Plaintiff and Appellant, (Super. Ct. No. 16CV41403)

v.

POKER FLAT PROPERTY OWNERS ASSOCIATION, INC.,

Defendant and Respondent.

Marian Garcia sued her former employer, Poker Flat Property Owners Association, Inc. (Poker Flat), alleging she was wrongfully terminated in retaliation for reports she made to Poker Flat’s board members concerning sexual harassment and other claimed violations of law. She also asserted causes of action for breach contract, breach of the implied covenant of good faith and fair dealing, defamation, intentional infliction of emotional distress, negligence, invasion of privacy, and fraud. The trial court granted

1 Poker Flat’s motion for summary judgment and thereafter entered judgment in the association’s favor. Garcia appeals. We affirm. BACKGROUND In accordance with the standard of review, we recite the facts in a light favorable to Garcia as the losing party. (See Saelzler v. Advanced Group 400 (2001) 25 Cal.4th 763, 768.) Garcia’s Employment with Poker Flat Garcia began her employment with Poker Flat in February 2006. She was hired to be Poker Flat’s office manager. Poker Flat is a property owners association located at Lake Tulloch in Calaveras County. The association is governed by an elected board of directors (Board). At the time Garcia’s employment was terminated in October 2015, the president of the Board was Stuart Mumm and the vice-president was Jerry Brock. Garcia reported directly to Mumm. Poker Flat maintained a boat launch and docks on the lake and charged association members to use these facilities. Members would pay a fee for a boat sticker and gate card to access the gated community and boat launch. Garcia’s job duties included collecting these fees, issuing the boat stickers and gate cards, depositing the money received into the bank, and keeping track of these payments and deposits. In addition to her office management duties, Garcia was also the Board’s secretary. In that capacity, she prepared Board agendas, recorded the minutes of Board meetings, prepared reports and other documents, and implemented directives related to the operation of the office. Garcia supervised various office assistants during her employment with Poker Flat, including Stacy Halstead, who was hired in 2013 and reported to Garcia until August 2014, at which point she began reporting to Poker Flat’s property manager, Sheldon Toso.

2 Circumstances Leading to Garcia’s Placement on Administrative Leave In late August 2015, Halstead noticed certain discrepancies between the ledger book that was used to keep track of payments for boat stickers and gate cards and the invoices and bank deposits themselves. The discrepancies indicated to Halstead that some of the money received was not deposited into the bank. She brought the matter to the attention of Mumm. On August 28, Mumm and Brock questioned Garcia at the office. The exact location of the meeting is unclear. For our purposes, it will suffice to note it was not a private closed-door meeting. However, the only other person at the office was Halstead, who had brought the matter to Mumm’s attention. Halstead was seated at her desk and overheard portions of the conversation. During the meeting, Mumm presented Garcia with a boat sticker form and a gate card form indicating money had been paid for those two items and asked Garcia: “Where’s the money for these two forms?” Garcia said the money was in the bank. Mumm said it was not deposited into the bank according to a QuickBooks report. When Garcia asked to look more closely into the records to try to account for the missing money, Mumm told her no and informed her she would be placed on paid administrative leave while an outside auditor looked into the matter. On September 1, Garcia received a letter confirming the details of the August 28 meeting, specifically “that the Association has placed [Garcia] on a leave of absence, with pay, while we conduct an audit of the Association’s finances.” The letter counseled Garcia to “treat this matter as confidential,” adding “this is a confidential and internal matter and we cannot reach any conclusions until the audit is completed.” Relevant Events During the Leave Period Poker Flat retained the accounting firm of Atherton and Associates LLP (Atherton) “for the purpose of assisting in determining the amount of cash receipts that may have been misappropriated during the period from January 25, 2014 to August 31,

3 2015.” According to Mumm, this was the “audit” he promised Garcia during the August 28 meeting. Garcia disputes this financial review amounted to an audit, pointing to the following disclaimer in the report generated by Atherton following the review: “We were not engaged to and did not conduct an audit, the objective of which would be the expression of an opinion. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.” In accordance with the standard of review, we accept Garcia’s position that Atherton did not conduct an audit. However, the financial review conducted by Atherton revealed significant irregularities in Poker Flat’s financial records, including a lack of deposited money to match member payment entries in the ledger book. Garcia does not dispute this. On September 16, 2015, while Garcia was out on administrative leave and Atherton was in the process of conducting the financial review noted above, Halstead became frustrated while at the office because, among other things, she was doing additional work for less pay than Garcia was making while on leave. She took a break from work and posted the following to Facebook: “I WANT TO DIE[.] [¶] FUCK YOU [EXPLETIVE] YOU CAN SIT ON YOUR FAT ASS AND COLLECT A PAY CHECK FOR 1100 THERE ABOUTS WHILE I DO MY FUCKING JOB AND YOURS, AND YET IM NOT THE FUCKING THIEF NOR THE LIAR BUT AM GETTING PAID THE FUCKING LEAST . . . . . . WHOS [EXPLETIVE] DO YOU HAVE TO SUCK ROUND HERE[?]”1

1 Aside from removing two expletives and adding two punctuation marks, we have provided the Facebook post verbatim.

4 Garcia called Toso and told him about Halstead’s Facebook post. Her husband brought a copy of the post to the Poker Flat office and gave it to Toso, who in turn reported Halstead’s conduct to Mumm. Halstead’s employment was terminated effective immediately. At some point, apparently during Garcia’s leave of absence, Toso approached Garcia’s father, who was a former board member of Poker Flat, and “told [him] that there was money missing and if [Garcia] knew where that money was, to come forward.” Garcia’s father was concerned and reported this conversation to her. Garcia’s Termination On October 15, 2015, Atherton provided Poker Flat with the report detailing its review of Poker Flat’s sales receipts, ledger entries, and bank deposits. As stated previously, Atherton’s report recounted significant irregularities, including a lack of deposited money to match member payment entries in the ledger book. We repeat that Garcia does not dispute this. The following day, Mumm terminated Garcia’s employment with Poker Flat effective immediately. The termination letter explained: “The Association’s retained auditor has completed its audit of Association finances.

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Garcia v. Poker Flat Property Owners Assn. CA3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garcia-v-poker-flat-property-owners-assn-ca3-calctapp-2021.