Jones v. Halfacre CA2/7

CourtCalifornia Court of Appeal
DecidedJune 30, 2021
DocketB303380
StatusUnpublished

This text of Jones v. Halfacre CA2/7 (Jones v. Halfacre CA2/7) 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. Halfacre CA2/7, (Cal. Ct. App. 2021).

Opinion

Filed 6/30/21 Jones v. Halfacre CA2/7 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 SEVEN

KIMBERLY JONES, B303380

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. SC123365) v.

ERIC M. HALFACRE,

Defendant and Appellant.

APPEAL from a postjudgment order of the Superior Court of Los Angeles County, Marc D. Gross, Judge. Affirmed. Gardner + Associates, Jennifer B. Gardner, Booth, Hillary Arrow Booth and Allan P. Bareng for Defendant and Appellant. Nossaman, Jennifer L. Meeker and Maya G. Hamouie for Plaintiff and Respondent. __________________________ Erik M. Halfacre (erroneously sued as Eric M. Halfacre) appeals the order denying his motion to vacate the default judgment for more than $1 million entered in favor of Kimberly Jones. Halfacre contends the trial court erred in denying his motion as untimely, concluding the default judgment was not void on its face and declining to grant relief pursuant to its equitable powers. We affirm. FACTUAL AND PROCEDURAL BACKGROUND 1. The Complaint, Service by Publication and Entry of Default and Default Judgment On November 6, 2014 Jones sued Halfacre and MJH Sales, Inc. for conversion, fraud, breach of contract of bailment and 1 rescission. According to the allegations in her complaint, in July 2014 Jones contracted with Halfacre to sell some of her unwanted jewelry. Jones had a business relationship with Halfacre because she and her ex-husband had frequented Halfacre’s parents’ jewelry store, where Halfacre had worked. Based on Halfacre’s representations that he was fully insured, Jones consigned jewelry worth in excess of $3.5 million to Halfacre to sell on her behalf. Shortly after entering into the agreement Jones received $400,000 as a good faith advance from Halfacre for the anticipated sale of her jewelry. Without approval from Jones, Halfacre then purported to complete a sale of all but five pieces of jewelry to MJH Sales for $453,200. Jones alleged she objected to the sale, demanded the return of her jewelry and offered to

1 Jones asserted the recission cause of action only against MJH Sales. MJH Sales was dismissed from the case and is not a party to this appeal.

2 return the $400,000 advance. Halfacre informed Jones the sale was completed and could not be unwound. Halfacre returned some, but not all, of the unsold jewelry. Taking into account the $400,000 advance, Jones alleged, “the value of the subject jewelry exceeded the paid amount(s) by an amount exceeding $1,000,000 to be proven at trial.” In her prayer for relief Jones sought damages “including without limitation the difference between the fair market value of the jewelry and the advance payment she received, according to proof but in no [event] less than the jurisdictional minimum of this Court.” The civil case cover sheet identified a Marina del Rey address for Halfacre. On February 2, 2015 Jones filed an application for service by publication using the Los Angeles Superior Court’s approved form. Her attorney, Gary Kurtz, declared the summons and complaint could not be served by any other available methods, including by mail. Kurtz requested publication in the “Daily Journal” as the newspaper most likely to give notice and averred Halfacre was “actively avoiding service and reasonable diligence has been used to attempt service.” Jones’s investigator, Daniel Thibodeau, declared he “spent approximately two weeks working on the service of Mr. Halfacre.” Thibodeau had located “possible addresses in San Diego, Orange and Los Angeles counties, and went to each address.” At the San Diego address Thibodeau “found no evidence . . . [that] Mr. Halfacre was still residing at that address.” Likewise, the address in the San Fernando Valley “did not appear to be a valid lead.” At the initial Orange County address Thibodeau spoke with Halfacre’s ex-wife, who provided a current address for Halfacre elsewhere in Orange County (in Corona del Mar). Thibodeau went to the new address on December 22, 2014 and “was able to confirm that it was a valid

3 address for Mr. Halfacre.” He observed a vehicle registered to Halfacre’s wife at the house. Also, “[i]t appeared that Mr. Halfacre was present in the house, but he would not come to the door.” Thibodeau spent seven hours “in surveillance, but [Halfacre] would not come to the door.” Eight days later Thibodeau returned to the Orange County address, spending nearly nine hours in travel and surveillance. Again, Thibodeau observed the vehicle registered to Halfacre’s wife, and “[i]t appeared that Mr. Halfacre was in the residence but would not come out to be served.” Thibodeau opined that Halfacre was aware of the lawsuit and actively evading service. In his opinion, given “the extreme difficulty in serving a person who is actively attempting to evade service . . . service by publication is the only effective means of achieving service.” The trial court issued the requested order on February 2, 2015 and ordered publication in the Los Angeles Daily Journal. The court also ordered Jones to mail Halfacre a copy of the summons and complaint if she was able to ascertain his address during the publication period and to file “[a] declaration of this mailing, or of the fact that the address was not ascertained.” On April 7, 2015 a proof of service by publication was filed. On May 19, 2015 Jones filed a request for entry of default against Halfacre. She submitted a copy of the publication notice from the Los Angeles Daily Journal. Halfacre’s default was entered the same day.

4 On June 8, 2015 Jones filed a request for entry of default judgment. On the same day the trial court entered a default 2 judgment against Halfacre in the amount of $3,202,299.50. 2. Halfacre’s Motion To Set Aside the Default Judgment Nearly four years later, on April 4, 2019, Halfacre moved to set aside the default judgment seeking relief pursuant to Code of Civil Procedure sections 473, subdivision (d), 473.5 and 580, 3 subdivision (a). Halfacre asserted he first became aware of the default judgment when he was personally served with an order to appear for a debtor’s examination on January 23, 2019 and argued the judgment was void for lack of proper service, he lacked actual notice of the lawsuit, and the $3.2 million judgment impermissibly exceeded the damages alleged in the complaint. With respect to service by publication, Halfacre contended Jones had failed to exercise reasonable diligence in attempting to serve him by another acceptable method, including by mail. Halfacre submitted a declaration stating he had been living in Corona del Mar when Jones attempted to personally serve him in December 2014 with the summons and complaint and had not (and would not have) evaded service given he had meritorious defenses against Jones’s claims. Halfacre also stated his mail was forwarded from his former Marina del Rey address to his Corona del Mar address and, had he been mailed a copy of the summons and complaint, he would have received notice of the lawsuit and defended himself.

2 Judge Gerald Rosenberg issued the order for service by publication and entered the default judgment against Halfacre. 3 Statutory references are to this code.

5 Jones opposed Halfacre’s motion, arguing the motion was untimely; the application for service by publication was valid; and the judgment was not void for any reason, including by exceeding the amount of damages alleged in the complaint.

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Jones v. Halfacre CA2/7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-halfacre-ca27-calctapp-2021.