hertz/coy v. Coy

CourtCourt of Appeals of Arizona
DecidedJuly 22, 2014
Docket1 CA-CV 12-0608
StatusUnpublished

This text of hertz/coy v. Coy (hertz/coy v. Coy) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
hertz/coy v. Coy, (Ark. Ct. App. 2014).

Opinion

NOTICE: NOT FOR PUBLICATION. UNDER ARIZ. R. SUP. CT. 111(c), THIS DECISION DOES NOT CREATE LEGAL PRECEDENT AND MAY NOT BE CITED EXCEPT AS AUTHORIZED.

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

RHONDA JEAN HERTZ, a single woman, Plaintiff/Counterdefendant/Appellee,

v.

LAURA LYNN COY, Defendant/Counterclaimant/Appellant. ___________________________________________________

LAURA LYNN COY, Cross-Claimant/Appellant,

SAMUEL F. COY, Cross-Defendant/Appellee.

No. 1 CA-CV 12-0608 FILED 07-22-2014

Appeal from the Superior Court in Navajo County No. S0900CV20060113 The Honorable Monica L. Stauffer, Judge

AFFIRMED

COUNSEL

The Hendrickson Law Firm, PLLC, Tempe By Brian W. Hendrickson

Law Office of Mark J. Leonardo, Malibu, CA By Mark J. Leonardo, Pro Hac Vice Co-Counsel for Defendant/Counterclaimant/Appellant Jones, Skelton & Hochuli, P.L.C., Phoenix By William D. Holm, Lori L. Voepel, Eileen Dennis GilBride Counsel for Plaintiff/Counterdefendant/Appellee

Samuel F. Coy, Show Low Cross-Defendant/Appellee In Propria Persona

MEMORANDUM DECISION

Judge John C. Gemmill delivered the decision of the Court, in which Presiding Judge Maurice Portley and Judge Kent E. Cattani joined.

G E M M I L L, Judge:

¶1 This appeal arises out of rulings made during an eleven-day jury trial on breach of contract and intentional infliction of emotional distress claims. Finding no abuse of discretion or error of law, we affirm.

BACKGROUND

¶2 Laura Lynn Coy (“Laura”) 1 and her husband, Samuel F. Coy (“Sam”), moved from Show Low to Port Hueneme, California, in 2001. They soon discovered that pigeons had infested their California house and five hundred gallons of droppings remained between the attic’s framing and drywall. The Coys sued the seller and eventually recovered $593,471.17 in damages (the “Wachtel litigation”).

¶3 Rhonda Hertz (“Rhonda”), Sam’s former supervisor at Show Low Pontiac-GMC-Buick-Nissan, LLC (“SLP”), loaned Sam and Laura various amounts totaling $129,387.39 to pay attorneys’ fees incurred during the Wachtel litigation. Laura signed a notarized letter in April 2004 acknowledging debts to Rhonda in the amounts of $60,000 due at that time, as well as liability for $15,000 Rhonda would be advancing.

¶4 Sam returned to Arizona in 2002 and resumed employment at SLP, while Laura remained in California with their two children. Sam

1 For clarity and brevity, we refer to the parties by their first names because two of them have the same last name. We intend no disrespect by the usage of first names.

2 Hertz/Coy v. Coy Decision of the Court

and Laura executed a separation agreement requiring Sam to pay monthly child and spousal support and to give Laura his share of the Wachtel litigation proceeds.

¶5 Laura filed for divorce in California in 2005. During the divorce proceeding, Laura claimed that she had signed the notarized document acknowledging her obligation to Rhonda under duress. The California family court, however, declined to hold Sam solely responsible for the loans from Rhonda, and dissolved the marriage in 2010.

¶6 Rhonda sued Sam and Laura for breach of contract in 2006 and obtained a default judgment against Sam. Laura answered the complaint and also filed a counterclaim against Rhonda, a cross-claim against Sam, and a third-party complaint against SLP.

¶7 In the cross-claim and counterclaim, Laura alleged that (1) Rhonda’s and Sam’s actions intentionally caused her emotional distress, (2) Rhonda induced Sam to breach the Coys’ separation agreement and interfered with a contract and prospective economic advantage, (3) Sam engaged in fraud and conspired to defraud Laura, (4) Sam interfered with Laura’s prospective economic advantage and breached their separation agreement as well as the covenant of good faith and fair dealing, (5) Laura was entitled to indemnity and declaratory relief from Sam, and (6) Rhonda aided and abetted tortious conduct and conspired to defraud Laura. Laura’s third-party complaint against SLP similarly asserted claims for intentional interference with contract and prospective economic advantage, aiding and abetting tortious conduct, and conspiracy to defraud.

¶8 The trial court granted summary judgment in SLP’s favor on all claims in the third-party complaint. It later granted summary judgment in Rhonda’s favor on all claims between Laura and Rhonda except for Rhonda’s breach of contract claim and Laura’s intentional infliction of emotional distress claim.

¶9 During the subsequent trial, Laura testified that Sam and Rhonda’s behavior reactivated trauma she had suffered as a child. Specifically, Laura claimed that Rhonda threatened to make Laura homeless if Laura didn’t “get [her] claws out of Sam.” Laura also testified that she suffered emotional distress when Sam reported her to the Social Security Administration for working and earning money notwithstanding her receipt of Social Security disability benefits. According to Laura, Sam, Rhonda, and others hid Sam’s income using loans and funneled money to

3 Hertz/Coy v. Coy Decision of the Court

help Sam avoid paying Laura additional child support.

¶10 The jury returned a verdict in favor of Rhonda on the breach of contract claim and in favor of Sam and Rhonda on the intentional infliction of emotional distress claim. The trial court incorporated the verdict in a final judgment with Rule 54(b) language. 2 This appeal followed. We have jurisdiction pursuant to Arizona Revised Statutes (“A.R.S.”) sections 12-120.21(A)(1) and -2101(A)(1).

ANALYSIS

¶11 Laura challenges several trial rulings on appeal. We view the evidence and all reasonable inferences therefrom in the light most favorable to upholding the jury’s verdict. See Romero v. Sw. Ambulance, 211 Ariz. 200, 202, ¶ 2, 119 P.3d 467, 469 (App. 2005).

I. The Trial Court Did Not Abuse Its Discretion In Precluding Experts and a Report

A. Emotional Distress Expert

¶12 Laura challenges the exclusion of expert testimony from psychiatrist Dr. Carole Lieberman, as well as Dr. Lieberman’s report, based on untimely disclosure. Citing Laura’s “systemic delay, obstruction, and noncompliance” throughout the course of the litigation, the trial court rejected Laura’s claim that the failure to disclose was inadvertent and thus should have been excused. See Ariz. R. Civ. P. 26.1(a)(6) (requiring disclosure of expert witnesses expected to testify at trial and the substance of their opinions). We review the trial court’s ruling on discovery and disclosure matters for abuse of discretion. Link v. Pima County, 193 Ariz. 336, 338, ¶ 3, 972 P.2d 669, 671 (App. 1998).

¶13 Arizona Rule of Civil Procedure (“Rule”) 37(c)(1) provides, in relevant part, that “[a] party who fails to timely disclose information required by Rule 26.1 shall not, unless such failure is harmless, be permitted to use as evidence at trial . . . the information or witness not disclosed, except by leave of court for good cause shown.” Laura first disclosed Dr. Lieberman as an expert on January 3, 2012 and Dr. Lieberman’s report on January 12, 2012, just thirty-nine days before trial. Both disclosures were past the disclosure deadline of December 23, 2011,

2 The trial court did not resolve Laura’s indemnity claim against Sam.

4 Hertz/Coy v. Coy Decision of the Court

and Laura had not requested an extension under Rule 26.1(b)(2) before the deadline.

¶14 Once the trial court concluded that the disclosure deadline violation was not harmless because Rhonda would then have to subpoena Dr.

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