Kalikas v. American Contractors Indemnity Co. CA4/1

CourtCalifornia Court of Appeal
DecidedJanuary 27, 2014
DocketD062567
StatusUnpublished

This text of Kalikas v. American Contractors Indemnity Co. CA4/1 (Kalikas v. American Contractors Indemnity Co. CA4/1) 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
Kalikas v. American Contractors Indemnity Co. CA4/1, (Cal. Ct. App. 2014).

Opinion

Filed 1/27/14 Kalikas v. American Contractors Indemnity Co. CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

COURT OF APPEAL, FOURTH APPELLATE DISTRICT

DIVISION ONE

STATE OF CALIFORNIA

ANTHONY KALIKAS, D062567

Plaintiff, Cross-defendant and Appellant, (Super. Ct. No. v. 37-2011-00088987-CU-FR-CTL)

AMERICAN CONTRACTORS INDEMNITY COMPANY,

Cross-defendant and Appellant;

JOHN MASTRODIMOS,

Defendant and Respondent;

WILLIAM MASTRODIMOS et al.,

Defendants, Cross-complainants and Respondents.

APPEAL from a judgment of the Superior Court of San Diego County, Ronald L.

Styn and Frederick L. Link, Judges. Affirmed.

Anthony E. Kalikas, in pro. per., for Plaintiff, Cross-defendant and Appellant. Law Office of Anthony E. Kalikas and Anthony E. Kalikas for Cross-defendant

and Appellant.

The Stone Law Group, Kenneth H. Stone and Rebecca Reed for Defendant and

Respondent; and for Defendants, Cross-complainants and Respondents.

Anthony E. Kalikas and American Contractors Indemnity Co. (together Cross-

defendants) appeal a judgment entered against them on the cross-complaint for wrongful

attachment filed by defendants William (Bill) Mastrodimos and Margaret O'Byrne, as

cotrustees of the Mastrodimos/O'Byrne Family Trust (Family Trust) and William

Mastrodimos, as trustee of the Country Comfort Trust (CC Trust) (together Defendants).

On appeal, Cross-defendants contend the trial court erred (1) in interpreting Civil Code

section 3439.071 as not independently authorizing the provisional attachment of

Defendants' property pending Kalikas's fraudulent transfer action against them, and (2)

finding Kalikas wrongfully levied on Defendants' property. Based on our reasoning

below, we conclude the trial court correctly interpreted section 3439.07 and found

Kalikas wrongfully attached Defendants' property.

1 All further statutory references are to the Civil Code unless otherwise specified.

2 FACTUAL AND PROCEDURAL BACKGROUND

In July 2010, John Mastrodimos (John) transferred his 50 percent interest in

certain real property to the Family Trust.2 In or about August 2010, John transferred 940

shares of stock in Country Comfort Restaurant, Inc., to the CC Trust.

On or about November 1, 2010, John retained Kalikas to represent him in a

lawsuit filed against him and other defendants. In March 2011, John apparently had an

unpaid balance of attorney fees owed to Kalikas and refused to sign a substitution of

attorney form allowing Kalikas to withdraw as his attorney. In April, Kalikas filed the

instant action against John, William and Defendants, alleging causes of action for

fraudulent conveyance, concealment, and interference with contractual relations. The

fraudulent conveyance cause of action alleged that John transferred his assets, including

the real property interest and shares of stock described above, to the named defendants to

defraud creditors, including Kalikas.

In conjunction with his lawsuit, Kalikas filed an ex parte application for a right to

attach order and order for issuance of a writ of attachment. His application sought a writ

of attachment against Defendants' interests in the real property and shares of stock

described above. In support of his application, Kalikas submitted his declaration stating

that "[u]nder . . . § 3439.07, a creditor who establishes the probable validity of his claim

for fraudulent transfer is entitled to petition the trial court for issuance of an order

2 To avoid confusion, we refer to John Mastrodimos and William (Bill) Mastrodimos by their first names.

3 granting a writ of attachment against the asset fraudulently transferred, or other

provisional remedy, including but not limited to an injunction against further disposition

by the debtor or a transferee of the asset fraudulently transferred or its proceeds." The

trial court (San Diego County Superior Court Judge Ronald L. Styn) issued the ex parte

right to attach order and order for issuance of writ of attachment, as Kalikas requested.

On April 19, 2011, the court's clerk issued an ex parte writ of attachment against

Defendants' interests in the real property and shares of stock described above.

In June 2011, Defendants filed an application to set aside the right to attach order,

quash the writ of attachment, and release the attached property. They argued that because

Kalikas's claims against them were not alleged to be based on a contract, there was no

basis under Code of Civil Procedure section 483.010 for a writ of attachment to be issued

against their property. Kalikas opposed Defendants' application, conceding there never

was any contract with Defendants on which to base a writ of attachment under Code of

Civil Procedure section 481.010 et seq. However, Kalikas argued a writ of attachment

was authorized under section 3439.07, which provides for attachment of property in

connection with fraudulent transfer actions. He cited the following language in that

statute: "(a) In an action for relief against a transfer or obligation under this chapter, a

creditor . . . may obtain: [¶] . . . [¶] (2) [a]n attachment or other provisional remedy

against the asset transferred or its proceeds in accordance with the procedures described

in Title 6.5 (commencing with Section 481.010) of Part 2 of the Code of Civil

Procedure." (§ 3439.07, italics added.) He argued that language is a substantive

4 provision authorizing attachment of property subject only to the procedural, and not

substantive, provisions of Code of Civil Procedure section 481.010 et seq. In reply,

Defendants argued section 3439.07, subdivision (a)(2), does not provide an independent

substantive basis for attachment of property and Kalikas was required to satisfy the

substantive requirements of Code of Civil Procedure section 483.010 to obtain the writ of

attachment against their property.

The trial court granted Defendants' application and issued an order (Order) setting

aside the right to attach order, quashing the writ of attachment, and releasing the property

levied on pursuant to the writ of attachment. The court disagreed with Kalikas's proposed

interpretation of section 3439.07. It considered the language of Code of Civil Procedure

section 483.010 and section 3439.07. It quoted section 3439.07, subdivision (b), which

provides: "If a creditor has commenced an action on a claim against the debtor, the

creditor may attach the asset transferred or its proceeds if the remedy of attachment is

available in the action under applicable law and the property is subject to attachment in

the hands of the transferee under applicable law." Noting section 3439.07, subdivision

(a)(2), sets forth the provisional remedy of attachment available to a creditor, the court

concluded section 3439.07, subdivision (b), "specifically limits the remedy of attachment

available to a creditor on a claim against a debtor (as in this case), to instances where 'the

remedy of attachment is available in the action under applicable law.' The 'applicable

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