Jones v. Eaton CA2/5

CourtCalifornia Court of Appeal
DecidedMay 20, 2026
DocketB338670
StatusUnpublished

This text of Jones v. Eaton CA2/5 (Jones v. Eaton 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
Jones v. Eaton CA2/5, (Cal. Ct. App. 2026).

Opinion

Filed 5/20/26 Jones v. Eaton CA2/5 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

DEREK JONES, B338670

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC710289) v.

JOSEPH EATON,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Richard L. Fruin, Jr., Judge. Affirmed. Derek Jones, in pro. per., for Plaintiff and Appellant. Sinclair Braun Kargher, Kevin S. Sinclair, and Andrew H. Steinberg for Defendant and Respondent. This appeal concerns the dismissal of an action under the “five-year rule,” which requires a plaintiff to bring a case to trial within five years of filing it. The trial court granted defendant and respondent Joseph Eaton’s (Eaton’s) motion to dismiss the case filed by plaintiff and appellant Derek Jones (Jones) for violating the five-year rule. We consider whether this was error—either because Jones’s action against Eaton was automatically stayed by Jones’s appeal of a judgment against other defendants in the action or because Jones demonstrated bringing the matter to trial within the required timeframe was impossible, impracticable, or futile.

I. BACKGROUND A. Background Facts1 The facts of the dispute between Jones and Eaton are not pertinent to resolving this appeal. It suffices to say that Jones sued Eaton and a group of other defendants (Umbrella Capital Group, Inc. dba The Plaza Group Realty (The Plaza Group), IKON, LLC (IKON), Michael Alladawi (Alladawi), William Go (Go), and Umbrella Group, Inc. (collectively, the Umbrella Defendants)) and alleged they engaged in a fraudulent scheme. As alleged, Eaton and the Umbrella Defendants loaned money to Jones, secured the loan by using Jones’s residential property as collateral, and, through a series of predatory and deceptive acts, obtained the equity in the home by foreclosing on the loan and

1 Jones and Eaton both filed motions to augment the record with documents that were filed in the trial court, including two iterations of Jones’s complaint and status reports filed by both parties in July 2023. The motions are granted.

2 subsequently selling the property to Industrial Strength Investments M, LLC (Industrial Strength). Per the allegations in the complaint, Eaton was a principal or partner in The Plaza Group, the entity that brokered the loan, and a manager and member of Industrial Strength, which ultimately purchased the property. Industrial Strength later initiated a quiet title action, which resulted in a declaration that it held valid title to the property.

B. Procedural History 1. Early proceedings Jones filed the complaint in this action in June 2018.2 Insofar as the record—which is primarily comprised of the trial court’s register of actions—reveals, Jones did not serve the complaint on any defendants until a year later, in June 2019, when he served some but not all defendants and did not serve either Eaton or Industrial Strength. Despite the apparent lack of service, Industrial Strength appeared in the action in June 2019 and demurred. The trial court sustained the demurrer with leave to amend. Jones then filed a first amended complaint. Industrial Strength filed another demurrer, which the trial court sustained without leave to amend. Jones filed proofs of service by mail on Eaton in January 2020 and August 2021, but there is no indication Eaton ever

2 The complaint initially identified other plaintiffs, but by the third amended complaint, Jones was the only named plaintiff and is the only party appealing the trial court’s order.

3 returned a notice of acknowledgement and receipt. In the interim, the trial court issued numerous orders to show cause regarding the absence of filed proofs of service on various defendants.

2. The defendants demur In September 2021, Eaton filed a demurrer to the first amended complaint. The Umbrella Defendants filed their own demurrer a month later. In December 2021, the trial court held a joint hearing on the two demurrers. Both Eaton and the Umbrella Defendants argued the claims in the complaint were precluded by the quiet title judgment. Eaton also demurred separately to eight of the causes of action on other grounds. The trial court overruled the demurrers to the extent they argued preclusion and sustained Eaton’s demurrer to the individual causes of action with leave to amend. The order stated the deadline to amend the complaint was Monday, December 13, 2021. Jones obtained two extensions of that deadline. Jones filed his second amended complaint on January 11, 2022, alleging eleven causes of action. Six of them, the causes of action for fraudulent inducement, intentional misrepresentation, negligent misrepresentation, breach of fiduciary duty, violation of Business and Professions Code section 17200 et seq. (UCL), and cancellation of instruments, named Eaton as a defendant. All the causes of action alleged against Eaton were also alleged against some, if not all, of the Umbrella Defendants. Eaton demurred again, arguing that some of the claims against him were precluded by the prior quiet title action and that the causes of action individually failed to state claims. The

4 Umbrella Defendants also filed a demurrer, but it is not included in the appellate record. In June 2022, the trial court ruled on the demurrers filed by Eaton and the Umbrella Defendants. The court sustained the Umbrella Defendants’ demurrer without leave to amend. It sustained Eaton’s demurrer with leave to amend and gave Jones 20 days to amend the complaint.3 Jones subsequently filed a motion for reconsideration of both orders, which the trial court denied. In late July, Eaton filed an ex parte application to dismiss the action for failure to timely amend, which the trial court also denied. The following month, Jones twice sought an extension of his deadline to file an amended complaint, which the trial court denied too. On August 30, 2022, Jones filed a third amended complaint, but the complaint was not signed. In December 2022, Jones appealed the trial court’s judgment in favor of the Umbrella Defendants. In March 2023, the trial court held an order to show cause hearing regarding discovery and a trial setting conference. It continued the latter to July 2023.

3. The July conference Jones filed a status report in advance of the July 2023 trial setting conference that represented he had not served his third amended complaint because he intended to file a fourth amended complaint. The status report also advised Jones had filed a

3 Around this time, Eaton filed a motion for summary judgment. The trial court held a hearing on that motion in November 2022 and denied it. Eaton also filed a series of discovery motions.

5 notice of appeal in December 2022 regarding the court’s dismissal of certain defendants and that appeal was still pending. Jones asserted this meant the five-year rule “would appear to be stayed” pending the disposition of his appeal. Jones also asserted he was requesting leave to file his fourth amended complaint. Eaton filed a status report shortly thereafter that represented Jones told Eaton he wished to seek leave to file a fourth amended complaint and, as a result, Jones contended it would be premature to set a trial date. Eaton agreed setting a trial date would be premature. On July 26, 2023, the trial court issued a minute order reflecting it held a trial setting conference.4 In its minute order, the court stated Jones was currently incarcerated in federal prison.

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Jones v. Eaton CA2/5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-eaton-ca25-calctapp-2026.