Hacker v. Fabe

CourtCalifornia Court of Appeal
DecidedJune 30, 2023
DocketB309997
StatusPublished

This text of Hacker v. Fabe (Hacker v. Fabe) 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
Hacker v. Fabe, (Cal. Ct. App. 2023).

Opinion

Filed 6/12/23 Certified for Publication 6/30/23 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA SECOND APPELLATE DISTRICT DIVISION EIGHT

RON HACKER, B309997 Plaintiff and Appellant, Los Angeles County v. Super. Ct. No. BC341913

JACQUELINE M. FABE, Defendant and Respondent.

CALIFORNIA STATE LABOR Los Angeles County COMMISSIONER, DIVISION OF Super. Ct. No. SC099658 LABOR STANDARDS ENFORCEMENT, DEPARTMENT OF INDUSTRIAL RELATIONS, Plaintiff and Respondent, v.

1538 CAHUENGA PARTNERS, LLC, Defendant.

APPEAL from an amended judgment of the Superior Court of Los Angeles County. Edward B. Moreton and Holly J. Fujie, Judges. Affirmed. Law Offices of Richard M. Fannan, Richard M. Fannan; Law Office of Richard L. Antognini and Richard Antognini for Plaintiff and Appellant. David L. Bell, State of California Department of Industrial Relations, Division of Labor Standards Enforcement for Plaintiff and Respondent. Jacqueline M. Fabe, in pro. per.; Kleinberg & Lerner and Marshall A. Lerner for Defendant and Respondent. _____________________________

SUMMARY The trial court granted a motion by the Labor Commissioner to amend a judgment to add Ron Hacker as an alter ego judgment debtor. Mr. Hacker appeals. He contends there was “virtually no evidence” he commingled his assets or operations with those of the judgment debtor; the original judgment was not renewed during the 10-year limitation period; the doctrine of laches bars the alter ego motion; and the denial of an earlier alter ego motion barred the current motion under res judicata principles. We find Mr. Hacker’s arguments lack merit and affirm the trial court’s order and judgment. FACTS 1. The Back Story This is our third opinion in this case. We take some of the facts directly from our earlier opinions. The litigation began in 2005, when Jacqueline Fabe, an attorney, filed a claim for unpaid wages with the Labor Commissioner against her employer, 1538 Cahuenga Partners,

2 LLC (Cahuenga or the company). Ms. Fabe obtained an award of almost $13,000. A month after Ms. Fabe filed her claim, Cahuenga and its principal, Mr. Hacker, filed a malpractice suit against Ms. Fabe. Ms. Fabe filed a retaliation claim with the Commissioner. She prevailed on her retaliation claim, and the Commissioner sued Cahuenga, seeking damages (Ms. Fabe’s defense costs) for the illegal retaliation. Ms. Fabe also cross-complained in the malpractice suit, seeking indemnity for her legal expenses. The lawsuits were consolidated. Ms. Fabe and the Commissioner (collectively, the judgment creditors) prevailed on all their claims, and judgment was entered on December 11, 2009. (1538 Cahuenga Partners, LLC v. Fabe (Jan. 5, 2012, B222023) 2012 Cal.App.Unpub. Lexis 92, pp. *1–*3 (1538 Cahuenga I).) A couple of months later, Cahuenga filed an ex parte application for an order correcting clerical errors in the judgment, and to quash an abstract of judgment Ms. Fabe had filed that named Mr. Hacker as a judgment debtor. The abstract was based on the December 11, 2009 judgment, which erroneously named Mr. Hacker as a plaintiff and cross-defendant. (Mr. Hacker had voluntarily dismissed his action against Ms. Fabe without prejudice in December 2008.) The trial court amended the judgment to delete reference to Mr. Hacker and quashed the abstract of judgment. (1538 Cahuenga I, supra, 2012 Cal.App.Unpub. Lexis 92, pp. *15–*16.) In March 2010, Ms. Fabe filed a motion to add Mr. Hacker to the judgment as a judgment debtor; this was denied without prejudice. In January 2012, we affirmed the judgment. (1538 Cahuenga I, supra, 2012 Cal.App.Unpub. Lexis 92.)

3 Later that year, on September 14, 2012, an amended judgment was entered in favor of the Commissioner for more than $297,000, plus interest, and in favor of Ms. Fabe for more than $101,000 (to be offset against any recovery by the Commissioner). (1538 Cahuenga Partners, LLC v. Fabe (Aug. 31, 2015, B253624) 2015 Cal.App.Unpub. Lexis 6259, p. *3 (1538 Cahuenga II).) For years thereafter, the Commissioner and Ms. Fabe sought to enforce the judgment, without success. In April 2012, Benjamin Schneider sat for a debtor’s examination. As we recounted in 1538 Cahuenga II, Mr. Hacker resigned as manager of Cahuenga soon after the December 2009 judgment against the company. Mr. Schneider became manager as of January 1, 2010. Mr. Schneider testified he searched for documents requested by the judgment creditors in his apartment (which he said was Cahuenga’s office), and the only document he found had a bank account number. The bank account had been closed. He asked Mr. Hacker about bank accounts prior to the time Mr. Schneider became manager, but received nothing from Mr. Hacker. Mr. Schneider testified the company had no money, and that no one received any money or assets from Cahuenga since he became the manager. (1538 Cahuenga II, supra, 2015 Cal.App.Unpub. Lexis 6259, pp. *3–*4.) He knew nothing about what happened to the initial capital contributions of the members and never discussed that with Mr. Hacker. Beginning in August 2012, the judgment creditors’ efforts to enforce the judgment included applications for orders requiring Mr. Hacker, Tanya Bogorad (an employee of Cahuenga at the time of the underlying litigation), BAG Fund, Inc., and BAG Fund, LLC, to appear for examination about their knowledge of

4 Cahuenga’s assets and liabilities. Mr. Hacker and the others resisted these efforts and sought protective orders. (Mr. Hacker sought an order requiring the judgment creditors to cease any production or other discovery requests “until they make and prevail on an alter ego motion to add him as an additional judgment debtor.”) (1538 Cahuenga II, supra, 2015 Cal.App.Unpub. Lexis 6259, p. *9.) The trial court largely denied the protective orders. Among other things, the court observed that “ ‘This case just has a history of hardball resistance to reasonable requests to enforce the judgment. . . . [W]hat I see is parties . . . saying we are not going to comply. We don’t care what you say. Forget it.’ ” (1538 Cahuenga II, supra, 2015 Cal.App.Unpub. Lexis 6259, pp. *9–*10.) The court stated “it had held Mr. Schneider in contempt of court; the records showed ‘the names that kept coming up were Ron Hacker and Ms. Bogorad as having some papers and knowledge’; and the motions showed ‘an internet work [sic] of organizations in which Mr. Hacker is involved and controls.’ ” (Id. at p. *10.) After a motion for reconsideration, the trial court declined to change its order, stating: “ ‘Both in terms of personnel and in terms of business transactions and assets, there is a strong potential for there to be property in the possession of the moving parties [Mr. Hacker et al.] or business records in the possession of the moving parties that would shed light on the activities and obligations of the judgment creditors [sic]. And the showing is that the moving parties are connected with Cahuenga and each other, that Mr. Hacker had a fundamental role in Cahuenga with evidence that he was instrumental in the business activities of

5 Cahuenga.’ ” (1538 Cahuenga II, supra, 2015 Cal.App.Unpub. Lexis 6259, p. *12.) Mr. Hacker and the other third parties appealed. In August 2015, we affirmed the trial court’s orders. (1538 Cahuenga II, supra, 2015 Cal.App.Unpub. Lexis 6259.) In March and April 2016, Mr. Hacker and Ms. Bogorad finally appeared for third party debtor’s examinations. Mr. Hacker could not recall many things, including whether he was the managing member of Cahuenga during the 2009 trial of the case. (He later testified he was.) He could not recall whether various attorneys, who the judgment creditors say appeared in this action on behalf of Cahuenga, ever worked for Cahuenga.

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Hacker v. Fabe, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hacker-v-fabe-calctapp-2023.