Innerspin Marketing v. Consequent Capital Management CA2/5

CourtCalifornia Court of Appeal
DecidedMay 20, 2025
DocketB336816
StatusUnpublished

This text of Innerspin Marketing v. Consequent Capital Management CA2/5 (Innerspin Marketing v. Consequent Capital Management 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
Innerspin Marketing v. Consequent Capital Management CA2/5, (Cal. Ct. App. 2025).

Opinion

Filed 5/20/25 Innerspin Marketing v. Consequent Capital Management CA2/5 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

INNERSPIN MARKETING, LLC, B336816

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. v. 21SMCV01850)

CONSEQUENT CAPITAL MANAGEMENT, LLC,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Los Angeles County, Michael E. Whitaker, Judge. Affirmed. Ken Simon Law and Kenneth O. Simon; Troygould, Christopher A. Lilly and Chinelo N. Ikem for Defendant and Appellant. Law Offices of Thomas Carter and Thomas P. Carter for Plaintiff and Respondent. Defendant and appellant Consequent Capital Management, LLC (Consequent) appeals from a judgment entered after a jury verdict in favor of plaintiff and respondent Innerspin Marketing, LLC for $448,000 on its claims for account stated and open book account. Consequent contends instructional error requires the jury’s verdict to be reversed on appeal. Consequent argues that although an instruction on adoptive admissions was legally correct, it was not warranted based on the facts of the case and it misled the jury into finding that Consequent’s silence in response to Innerspin’s invoices amounted to a promise to pay the invoiced amounts. Based on our review of the briefs and the record, Consequent has not established that any instructional error was prejudicial. Therefore, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

A. Overview

Consequent is a fund management group that works with entities such as pension or retirement funds to manage the funds’ investments. Innerspin is a marketing agency that assists clients such as Consequent with marketing and other services, including assistance with preparing requests for proposal (RFP) responses. Consequent started working with Innerspin in 2017, and continued through March 2021. Over the course of the working relationship between the two companies, Consequent fully paid some of Innerspin’s invoices, partially paid others, and did not make any payment on others. In late March 2021, Innerspin demanded payment of outstanding invoices and stopped doing work for Consequent.

2 B. Parties’ Course of Conduct

Although not all the invoices appear in the appellate record, neither party disputes that Innerspin sent Consequent monthly invoices, or that the monthly invoiced amounts were $15,000 in 2017, $20,000 from August 2018 through December 2020, and $10,000 from January through March 2021. The appellate record does not provide much detail about how the nature of Innerspin’s work for Consequent varied from one month to the next. An August 2018 written contract, discussed in more detail below, identified Innerspin’s scope of work to include branding, marketing, website maintenance, RFP support, bookkeeping support, and information technology (IT) support services. During trial, Consequent presented evidence that it engaged separate vendors to work on its website, and to provide bookkeeping and IT support services. While there was conflicting evidence over the extent and nature of the RFP support services Innerspin provided to Consequent, it was undisputed that those RFP services were provided over the course of the parties’ relationship.

C. Written Contract

In August 2018, the two companies signed a proposal by Innerspin, identifying Consequent as the client, and describing its objective as: “Provide 1-month of support for Consequent Capital Management from August 1, 2018-September 1, 2018.” The description of the scope of work included branding,

3 marketing, website maintenance, RFP support, bookkeeping support, and IT support. Although Consequent asked for the contract to be for one month only, there is no evidence the parties expressly discussed the terms and conditions of any arrangement after the initial month, and the agreement itself contains potentially conflicting language. Under a section entitled “Monthly Fees,” the written contract states “Month fee: $20,000 for August 1, 2018- September 1, 2018.” Immediately following is a section entitled “Fee and Terms,” which states “Monthly fee is based on a flat fee of $20,000 per month. This proposal and ‘Agreement’ shall not renew unless . . . agreed upon by both parties in writing.” On the same page, under the heading “Additional Information,” the proposal states “Monthly fee will be billed at the beginning of each month. Any significant hours used beyond the Scope of Work will be billed at the end of each month.” In the “Standard Terms and Conditions” section, the proposal provides that “The term of this agreement shall continue until terminated upon thirty (30) days prior written notice by either party . . . .”

D. Innerspin’s Invoicing and Collection Efforts

In July 2020, Innerspin employee Alyna Choi (Alyna)1 sent an email to Scott Cha-Choe, Consequent’s Chief Financial Officer (CFO), attaching a statement of accounting of Consequent’s past

1 During the relevant time frame, Elcid Choi was an owner and president of Innerspin as well as a board member on Consequent’s Board of Directors. Alyna Choi and Elcid Choi are unrelated, and we refer to them by first name to avoid confusion.

4 due invoices, together with copies of the unpaid invoices. The accounting showed a $285,000 balance due for unpaid invoices spanning the time period from July 2017 through July 2020. The email text stated: “Please find a summary of open invoices attached. [¶] Can you kindly confirm payment status on invoices or plans for next payment.” Alyna sent similar statements of accounting, listing individual unpaid invoices and providing a total amount outstanding, to Consequent in October 2020, December 2020, and January, February, and March 2021. Each email indicated the attachments included the most recent invoice and a statement of open invoices and asked when Innerspin could expect payment. A later accounting showed that starting in August 2018, Consequent paid $20,000 to Innerspin for nine separate months: August, September, October and November of 2018, January, June, August, September and December of 2019. Consequent paid Innerspin $15,000 in December of 2018, and it made no payments for the months of February through May, July, and October 2019, and January through September 2020. From October 2020 through January 2021, Consequent paid varying amounts, either $3500 or $5000. Innerspin began invoicing Consequent for $10,000 monthly starting in January 2021, and Consequent paid the full $10,000 in February 2021. On March 10, 2021, Alyna sent an email to Consequent CFO Scott Cha-Choe and CEO John Robinson, attaching the March 2021 invoice of $10,000 and a statement of account showing an outstanding balance of $448,000. After Alyna answered some clarification questions, Robinson responded, “Based upon the reconciliation of invoices and payments, I reviewed and the amount owed to Innerspin Marketing is correct.

5 I will forward the information to our accounting firm to adjust Quickbooks.”

E. The Instant Action

In November 2021, Innerspin sued Consequent to recover the outstanding $448,000. Innerspin’s complaint alleged claims for breach of written contract, indebtedness, account stated, open book account, and goods/services sold and delivered.

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Innerspin Marketing v. Consequent Capital Management CA2/5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/innerspin-marketing-v-consequent-capital-management-ca25-calctapp-2025.