Katzenstein v. Chabad of Poway

237 Cal. App. 4th 759, 188 Cal. Rptr. 3d 461, 2015 Cal. App. LEXIS 509
CourtCalifornia Court of Appeal
DecidedJune 15, 2015
DocketD066340
StatusPublished
Cited by30 cases

This text of 237 Cal. App. 4th 759 (Katzenstein v. Chabad of Poway) 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
Katzenstein v. Chabad of Poway, 237 Cal. App. 4th 759, 188 Cal. Rptr. 3d 461, 2015 Cal. App. LEXIS 509 (Cal. Ct. App. 2015).

Opinion

Opinion

IRION, J. —

Respondent Bonnie Katzenstein (Trustee), in her capacity as trustee of the Feinberg Family Trust Agreement dated October 30, 1984, as amended (Trust), filed a petition in probate court (Petition) following the death of Robert Feinberg (Decedent). Decedent was the cosettlor and former cotrustee of the Trust and the named insured in two life insurance policies. In the Petition, Trustee sought (1) a determination that the Trust is the beneficiary of, and therefore entitled to the proceeds from, one of the insurance policies and (2) damages against Chabad of Poway (Chabad) for interfering with the payment of that policy’s benefits to the Trust. Chabad responded to *762 the Petition by filing a document entitled “Claimant’s Objection and Counter Claim [sic] to Petition filed by Trustee to Determine Ownership of Life Insurance Policy Proceeds” (Objection and Counterclaim).

In an unsigned minute order following summary judgment proceedings initiated by Trustee, the court sua sponte struck Chabad’s Objection and Counterclaim on the basis that the Code of Civil Procedure precludes a party from seeking affirmative relief in an answer. Chabad appeals. However, because this unsigned minute order is not an appealable order under either the Code of Civil Procedure or the Probate Code, we lack jurisdiction and will dismiss Chabad’s appeal.

I.

BACKGROUND FACTS AND PROCEDURE 1

According to the Petition, in 1984 Decedent and his wife executed the documents that established the Trust, and they amended it in 1999 and 2004. Decedent, whose wife had predeceased him, died in August 2012. Upon the death of Decedent, according to the terms of the Trust, Trustee became the sole successor trustee and has remained the sole successor trustee ever since. Trustee alleged that in 1984 Decedent purchased Genworth Life Insurance Company policy No. 00084978 (Genworth policy) and that at all times the Trust was the named beneficiary of the Genworth policy. Trustee sought both a declaration that the Genworth policy benefits belong to the Trust and an award of damages against Chabad for interfering with the payment of the Genworth policy benefits to the Trust as the named insured. (Prob. Code, §§ 850, subd. (a)(3)(A), 17200, 859.) 2

In the Objection and Counterclaim, Chabad alleged it is a nonprofit organization that includes inter alia a Jewish synagogue and a senior center. 3 *763 Chabad contended that Decedent gave it “an irrevocable pledge” of the death benefits in two life insurance policies — the Genworth policy and Sun Life Financial Life Insurance policy No. 0004097490 (together the Policies) — in exchange for renaming the senior center the “ ‘Robert Feinberg Sunshine Club’ to be operated [by Chabad] after [Decedent’s] death by use of the [Policies’ death benefits.” 4 To this end, according to the Objection and Counterclaim, Chabad renamed the senior center and publicized Decedent’s name in connection with receiving the pledge. 5 In addition to alleging facts which Chabad contends required the court to deny the relief Trustee seeks in the Petition, Chabad’s Objection and Counterclaim also contained affirmative claims for relief against Trustee based on unjust enrichment and breach of contract.

In a response to Chabad’s Objection and Counterclaim, Trustee denied the material allegations and affirmatively asserted that any document signed by Decedent purporting to gift the Genworth policy benefits to Chabad was unenforceable because “the signature was obtained by fraud, duress, undue influence or when [Decedent] lacked the capacity to sign such documents.”

Following discovery, Trustee brought a motion for summary judgment or in the alternative “for summary adjudication of the issue of whether the [Genworth policy’s] life insurance proceeds are the property of the [Trust].” Chabad opposed the motion, and Trustee filed a reply.

The court issued a lengthy (five-page, single-spaced) tentative ruling (1) denying summary judgment on the basis that the motion did not mention Trustee’s claim for damages under Probate Code section 859; (2) granting summary adjudication on the basis that, because the Genworth policy designated the Trust as the sole beneficiary, there were no triable issues of material fact as to Trustee’s claim that the Genworth policy benefits were the property of the Trust; and (3) sua sponte striking the Objection and Counterclaim on the basis that, in responding to the Petition, Chabad was statutorily precluded from seeking affirmative relief (i.e., the claims against Trustee based on unjust enrichment and breach of contract). In this latter regard (striking the Objection and Counterclaim — the only ruling at issue in this appeal), the court relied on Code of Civil Procedure 6 sections 436, subdivision (b), and *764 431.30, subdivision (c), and applied them to the underlying proceeding according to Probate Code section 1000. 7

The court entertained oral argument, during which most of the exchange concerned the tentative striking of Chabad’s Objection and Counterclaim. 8 In part, the court described to Chabad’s counsel (who stated that he was representing Chabad on a pro bono basis) some of the differences between the procedures in the Code of Civil Procedure and the Probate Code, explaining that claims in probate “need[] to be presented properly.” At the conclusion of the hearing, the court confirmed its tentative ruling, explained in detail the bases of its rulings and filed an unsigned minute order (the Order) consistent with the tentative ruling, namely, (1) denying Trustee’s motion for summary judgment, because the motion did not deal with Trustee’s pending claim for damages; (2) granting Trustee’s motion for summary adjudication, because the beneficiary statement in the Genworth policy named the Trust; and (3) sua sponte striking Chabad’s Objection and Counterclaim, because it improperly asserted claims for affirmative relief in the response to the Petition.

Trustee gave written notice of entry of the Order, and Chabad timely appealed from the Order.

Prior to briefing, Trustee filed a motion to dismiss the appeal on the basis that an order granting summary adjudication is a nonappealable order. More specifically, Trustee argued that, because the Order did not dispose of the entire matter — e.g., Trustee still had pending a claim for damages against Chabad in the Petition — the Order was interlocutory, and we lacked jurisdiction to hear the appeal. Chabad opposed the motion on two grounds: (1) because the Order “effectively disposed of the entire case,” it was “final and appealable” under section 904.1, subdivision (a)(1), and (2) because the Order adjudicated and denied payment of Chabad’s claim, it was appealable under Probate Code section 1300 and, thus, Code of Civil Procedure section 904.1, subdivision (a) (10).

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Cite This Page — Counsel Stack

Bluebook (online)
237 Cal. App. 4th 759, 188 Cal. Rptr. 3d 461, 2015 Cal. App. LEXIS 509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/katzenstein-v-chabad-of-poway-calctapp-2015.