Kenne v. Stennis CA2/7

CourtCalifornia Court of Appeal
DecidedFebruary 26, 2013
DocketB221752
StatusUnpublished

This text of Kenne v. Stennis CA2/7 (Kenne v. Stennis 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
Kenne v. Stennis CA2/7, (Cal. Ct. App. 2013).

Opinion

Filed 2/26/13 Kenne v. Stennis CA2/7 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

KATHLEEN A. KENNE, B221752

Plaintiff, Cross-defendant and (Los Angeles County Appellant, Super. Ct. No. SC092747)

v.

ZELMA R. STENNIS,

Defendant, Cross-complainant and Appellant;

KEVIN P. STENNIS,

Defendant and Appellant.

APPEALS from a judgment of the Superior Court of Los Angeles County, Norman P. Tarle, Judge. Affirmed. Schomer Law, Scott Schomer; Law Office of Helaine Hatter and Helaine Hatter for Defendant, Cross-complainant and Appellant, and for Defendant and Appellant. Law Office of Kathleen A. Kenne and Kathleen A. Kenne for Plaintiff, Cross- defendant and Appellant. ______________________ INTRODUCTION

Defendant and cross-complainant Zelma R. Stennis (Zelma) appeals from the portion of a judgment entered after a jury trial in favor of plaintiff and cross-defendant Kathleen A. Kenne (Kenne). Kenne appeals from the portions of the judgment in favor of Zelma and awarding attorney‟s fees and costs in favor of defendant Kevin P. Stennis (Kevin). Kevin also appeals from the judgment as to the award of attorney‟s fees and costs. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

Kenne was an attorney and a personal friend of—and at one time romantically involved with—William Davis (Davis), a disbarred attorney. Davis was an old family friend of Zelma and her family, including her son, Kevin, who was a Deputy District Attorney for Los Angeles County. Kenne had been introduced to Kevin in 1997 when they were both law students. In 2003, Zelma sued Cecil McNabb (McNabb) for money he owed her arising from his purchase of her restaurant chain, Golden Bird, Inc., and from his lease of two restaurant locations which belonged to Zelma. She also sought to evict McNabb from her commercial real property known as 12801 and 12815 South Central Avenue in Los Angeles (the Central Avenue property). Zelma was initially represented pro bono by the law firm of McKenna, Long & Aldrich, LLP. After a jury trial resulting in eviction of McNabb from Zelma‟s commercial property, the law firm discontinued representation. At the firm‟s suggestion, she engaged another attorney, Dwayne L. Abbot (Abbot), to assist her with the remaining matters in the litigation. During Abbot‟s representation of Zelma, Davis suggested that Zelma let Abbot go and, instead, engage the services of Kenne. Davis made oral arrangements with Zelma to assist her, for a fee, in selling the Central Avenue property and to loan her money to enable her to pay Abbot. On May 4, 2004, Zelma engaged Kenne and signed two

2 retainer agreements with Kenne. The retainers were for Kenne‟s services in two lawsuits between Zelma and McNabb that were then pending. Zelma was 81 years old when she signed the retainers. The retainers specified that Zelma agreed to pay Kenne attorney‟s fees at the rate of $250 per hour and to reimburse her for out-of-pocket costs and expenses. Each retainer stated that Zelma “agrees to pay all fees and expenses due upon the sale of [Zelma‟s] real property known as 12801-12815 South Central Avenue, Los Angeles, California 90059 . . . . In the unlikely event that [Zelma] is unable . . . to pay attorney fees from the sale of the Central Avenue property, [Zelma] shall . . . pay [Kenne] from other sources.” One retainer was for litigation entitled Zelma R. Stennis v. Golden Bird, LLC, et al., Los Angeles County Superior Court Case No. 03Q01449, an unlawful detainer action to regain possession of the Central Avenue property. Judgment had already been entered in favor of Zelma against one of the two business entities in possession of the property, but postjudgment actions were needed to regain possession of the property. After five unsuccessful attempts to obtain a writ of possession against the second business entity, the entity not named in the unlawful detainer judgment, Kenne filed three unlawful detainer actions in an effort to regain possession of the Central Avenue property from the second business entity.1 In April 2005, after a five-day court trial, the court entered judgment in favor of Zelma and against the second business entity. By May 2005, Zelma had regained possession of the Central Avenue property. The other retainer was for a case entitled Credit Managers Association of California v. Golden Bird, LLC et al.,2 Los Angeles County Superior Court Case

1 The additional unlawful detainer actions were each entitled Zelma R. Stennis v. Golden Bird Franchise Company, LLC et al. and were filed in Los Angeles County Superior Court as Case Nos. 04Q00982, 04Q01308, and 04Q02040. 2 In the retainer agreement, the case was erroneously identified as Cecil McNab[b], et al. v. Zelma R. Stennis, et al., Los Angeles County Superior Court Case No. BC291647.

3 No. BC291647. Zelma and her then-bankrupt corporation, Golden Bird, Inc., were named as cross-defendants in the case. Kenne represented both Zelma and the corporation. The action and its cross actions were dismissed after the parties reached a settlement agreement in March 2006. Beginning in October 2006, Zelma stopped returning Kenne‟s telephone calls. Zelma had ceased working with Davis and had engaged a real estate brokerage firm to sell the Central Avenue property. Neither Zelma nor Kevin responded to Kenne‟s certified letter of October 20, 2006, requesting reasonable assurances of payment for outstanding legal fees and costs. They also did not respond to Kenne‟s certified demand letter of January 6, 2007, for payment of all outstanding fees and costs. In early February 2007, Kenne learned that Zelma had entered into escrow for sale of the Central Avenue property. On February 13, Kenne filed the instant action against Zelma and Kevin for breach of contract, i.e., the retainer agreements, with damages in the sum of $363,692.02; for fraud, alleging, inter alia, promise without intent to perform; and for common counts for services rendered in the sum of $363,692.02. The next day Kenne recorded a lis pendens against 12801 South Central Avenue and another against 12815 South Central Avenue. Kenne filed the operative first amended complaint on June 14, 2007. She alleged causes of action for breach of written contracts (first), breach of oral contracts (second), common counts (third), fraud (fourth), intentional interference with contractual relations (fifth) and intentional interference with prospective economic advantage (sixth). In September 2007, Kenne and Zelma entered into a conditional settlement and release agreement, with a related escrow instructions addendum for close of escrow in October. The buyer then requested an escrow extension to a December date. Zelma signed an addendum to escrow instructions providing for the December closing date but did not submit it to the escrow officer. Subsequently, the buyer for the Central Avenue property requested that close of escrow be extended for 75 days to a date in late December rather than for the October date provided in the settlement agreement. Zelma refused to agree to the proposed

4 extension to December. In October 2007, Kenne made an ex parte application and motion to enforce the conditional settlement agreement and to have judgment entered in her favor. The basis for these was that Zelma had breached the settlement agreement by not submitting her signed agreement to amend the closing date. Zelma opposed the application.

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Kenne v. Stennis CA2/7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenne-v-stennis-ca27-calctapp-2013.