Hynes v. Smith CA2/5

CourtCalifornia Court of Appeal
DecidedMarch 30, 2021
DocketB302998
StatusUnpublished

This text of Hynes v. Smith CA2/5 (Hynes v. Smith CA2/5) 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
Hynes v. Smith CA2/5, (Cal. Ct. App. 2021).

Opinion

Filed 3/30/21 Hynes v. Smith CA2/5 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FIVE

JOEY GERALDINE HYNES, B302998

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. v. BC708333)

MARILYN SMITH,

Defendant and Appellant.

APPEAL from an order of the Superior Court of Los Angeles County, Susan Bryant-Deason, Judge. Affirmed.

Reif Law Group, Brandon S. Reif, Marc S. Ehrlich and Ohia A. Amadi for Defendant and Appellant.

James V. Mellein for Plaintiff and Respondent.

_________________________ Defendant and appellant Marilyn Smith brought an anti- SLAPP motion (Code Civ. Proc., § 425.16) against a malicious prosecution cause of action in the third amended complaint of plaintiff and respondent Joey B. Hynes.1 The trial court denied the motion as untimely, finding it could have been brought against Hynes’s second amended complaint, which had effectively pleaded the malicious prosecution cause of action. We agree and affirm. FACTUAL AND PROCEDURAL BACKGROUND The anti-SLAPP motion at issue was filed in what began as an attorney malpractice action. Hynes brought suit against her former attorney, Smith, alleging negligence in her handling of a wrongful death action and her intentional and malicious withholding of settlement funds. As our only concern in this appeal is the timeliness of Smith’s anti-SLAPP motion as directed to Hynes’s later cause of action for malicious prosecution, we limit our factual discussion accordingly. We start with events and litigation that preceded the malpractice lawsuit. 1. The Representation Results in a Settlement Hynes was appointed administrator of the estate of her deceased brother. As administrator, she considered bringing suit for wrongful death against various doctors and entities involved in his care. Hynes retained Smith for this purpose. Smith filed the lawsuit and was partially successful, obtaining a settlement from several defendants amounting to $330,000, but not successful against other defendants. The settlement proceeds were placed in Smith’s client trust account.

1 All further undesignated statutory references are to the Code of Civil Procedure.

2 Hynes and Smith disputed the amount of fees to which Smith was entitled from the settlement. 2. The Fee Arbitration The fee dispute proceeded to voluntary arbitration with the Los Angeles County Bar Association. On March 1, 2018, the arbitration panel issued its nonbinding award as follows: “The Law Offices of Marilyn M. Smith is entitled to $42,031.96 out of the $330,000.00 held in the attorney-client trust account. The remainder of $287,968.04 should be promptly remitted to Joey H[y]nes.” Neither Smith nor Hynes requested a trial de novo. The award therefore became final after 30 days. (Bus. & Prof. Code, § 6203, subd. (b).) Smith did not, however, promptly remit the $287,968.04 to Hynes. 3. The Confirmation Action and Interpleader Instead of transmitting the money to Hynes, Smith brought two lawsuits that tied up the funds for approximately an additional year – depriving Hynes of reimbursement for substantial amounts she had expended in funding the litigation, and costing her additional expenses.2 These cases would later form the basis of Hynes’s malicious prosecution cause of action against Smith. A. The Confirmation Action On April 6, 2018, attorney Smith filed suit against Hynes to confirm the arbitration award (“Confirmation Action”). In her form complaint, she identified the amount in dispute as “$42,031” – i.e., the amount the arbitrators had said she was entitled to

2 Hynes said she had taken out a home equity line of credit in order to fund the wrongful death action. She was continuing to incur interest expenses of $1,000 per month.

3 retain. She did not reference the amount the arbitrators awarded to Hynes. In addition to seeking a judgment in her favor in that amount, Smith sought interest, costs, and attorney fees. Hynes answered the petition, agreeing that Smith be granted her $42,031.96 share of the arbitration award, but denying that Smith was entitled to any interest, costs or fees. B. The Interpleader On April 12, 2018, about a week after filing the Confirmation Action, Smith filed a complaint in Interpleader, depositing the entire $330,000 into the court (“Interpleader”). She asserted that she was entitled to her $42,031.96 out of the fund, but that Hynes “disputes that [Smith] is entitled to any portion” of the money. She also identified as defendants the three heirs of Hynes’s brother, asserting that since Hynes pursued the underlying action as administrator of his estate, the heirs had an interest in the funds. She alleged she could not distribute the funds to Hynes – the administrator – without an order from the Probate Court. Finally, she also alleged that Medicare claimed a lien on the settlement funds, although she did not name Medicare as a defendant in the Interpleader. Smith sought release of the $42,031.96, plus interest, costs and fees. As she did in the Confirmation Action, Hynes responded that Smith should receive the $42,031.96 ordered by the arbitrators, but without interest, costs or fees. C. Ultimate Resolution of the Confirmation Action and Interpleader The Confirmation Action and the Interpleader would not resolve for a year – overlapping with the current litigation. Ultimately, on December 14, 2018, Hynes obtained from the

4 Probate Court an order to release the interpleaded funds as follows: $42,031.96 to Smith and $287,968.04 to Hynes as administrator of the estate. Any interest accrued on the funds was to be divided proportionately. Once the funds were delivered to Hynes as administrator, she was to distribute $208,244.08 to herself as reimbursement for costs and fees she had advanced in the wrongful death action. She was to pay $15,000 to each of the three heirs, and could hold the remainder in her administrator’s account for the payment of future costs (e.g., Medicare) which may be incurred. Hynes received the funds. On April 23, 2019, more than a year after it was filed, the Confirmation Action was dismissed without prejudice at Smith’s request.3 On May 31, 2019, the Interpleader was also dismissed without prejudice. 4. Hynes’s Complaint in This Action On May 31, 2018 – shortly after Smith filed the Confirmation Action and Interpleader – Hynes, representing herself, brought the present lawsuit against Smith, alleging legal malpractice.4 Hynes’s complaint went through several iterations and was challenged multiple times. To reiterate, our concern is only her malicious prosecution claim.

3 Smith represents that this dismissal was the result of an agreement; Hynes disagrees. We need to not resolve the dispute.

4 Hynes alleged that she was 86 years old. Because of her age, this action is entitled to preference. (§ 36.)

5 5. Hynes’s First Amended Complaint Alleges Abuse of Process Pursuant to stipulation, on October 16, 2018, Hynes filed her first amended complaint. This complaint re-alleged her original cause of action for malpractice and added a claim for abuse of process. Hynes alleged that Smith’s filing of the Confirmation Action and the Interpleader constituted abuse of process. She alleged that, in both cases, Smith misrepresented the existence of a dispute regarding the allocation of the settlement funds, when no dispute existed.

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Bluebook (online)
Hynes v. Smith CA2/5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hynes-v-smith-ca25-calctapp-2021.