KPMC v. Chaudhari CA2/3

CourtCalifornia Court of Appeal
DecidedNovember 6, 2024
DocketB326029
StatusUnpublished

This text of KPMC v. Chaudhari CA2/3 (KPMC v. Chaudhari CA2/3) 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
KPMC v. Chaudhari CA2/3, (Cal. Ct. App. 2024).

Opinion

Filed 11/6/24 KPMC v. Chaudhari CA2/3

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 THREE

KPMC, LLC, B326029

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. 21STCV31781) v.

VELJIBHAI CHAUDHARI et al.,

Defendants and Appellants.

APPEAL from an order of the Superior Court of Los Angeles County, William F. Fahey, Judge. Affirmed. Law Offices of Thomas J. Tedesco, Thomas J. Tedesco; Law Crafters Legal Services, Inc. and Alan M. Goldberg for Defendants and Appellants. Lagasse Branch Bell + Kinkead and Christopher C. Cianci for Plaintiff and Respondent.

‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗‗ Defendants Veljibhai Chaudhari and Sushilkumar Chaudhari (the Chaudharis) appeal from a judgment entered in favor of plaintiff KPMC, LLC. We affirm the judgment. FACTUAL AND PROCEDURAL BACKGROUND In 2016, the Chaudharis signed a five-year commercial lease with KPMC. The lease required the Chaudharis to pay monthly rent to KPMC. It allowed the prevailing party in any action based on the lease to recover attorney fees and costs. The Chaudharis assigned their rights under the lease to nonparty Midtown Mart, Inc. KPMC was aware of and signed the assignment. The assignment required that the Chaudharis “remain primarily (and not secondarily) obligated to [KPMC] for the full performance of all covenants, conditions, obligations and duties required to be performed by [the Chaudharis] under the Lease, and shall not be relieved of any such performance thereunder as a result of this Assignment or as a result of any extension, renewal, modification, or amendment of the Lease or any further assignment, subletting or other tenancy under the Lease or to any holdover term following the term granted under the Lease or any extension or renewal thereof, regardless of whether [the Chaudharis] consent[] thereto or receive[] notice thereof.” Midtown Mart stopped paying rent in early 2020. The lease naturally expired in March 2021. In April 2021, KPMC filed an unlawful detainer action against Midtown Mart seeking possession of the property and restitution for unpaid rent and holdover damages. Midtown Mart did not appear at trial. In June, the court entered default judgment for KPMC and awarded it possession of the property. The court also entered a $192,420.78 monetary judgment for KPMC against Midtown

2 Mart, consisting of $165,254.38 for past rent due, $25,216.40 in holdover damages, $1,500 in attorney fees, and $450 in costs. In August 2021, KPMC sued the Chaudharis for breach of contract, seeking damages not less than the amount awarded in the unlawful detainer judgment. KPMC moved for summary judgment in June 2022. It submitted the lease as evidence of a contract. KPMC declared that it had performed its obligations under the lease. It argued that the lease was materially breached through nonpayment of rent and that the Chaudharis were liable for that breach pursuant to the lease and the assignment. KPMC requested judicial notice of the unlawful detainer judgment. It declared that the judgment accurately reflected its damages of $165,254.38 for past rent due, $25,216.40 in holdover damages, $1,500 in attorney fees, and $450 in costs. The Chaudharis did not oppose the request for judicial notice. In their opposition to KPMC’s summary judgment motion, the Chaudharis argued that they were necessary parties to the unlawful detainer action, that KPMC failed to mitigate damages, that res judicata barred KPMC from filing a second action for unpaid rent, and that KPMC waived its rights against the Chaudharis. The Chaudharis declared that they were unaware that Midtown Mart stopped paying rent and unaware of the unlawful detainer action until they received KPMC’s complaint against them. KPMC’s reply argued that the Chaudharis were not indispensable parties to the unlawful detainer action, that the lawsuit was not barred by res judicata, and that KPMC did not waive its rights to sue the Chaudharis. It also contended that KPMC had not failed to mitigate damages because it promptly filed the unlawful detainer action shortly after the lease expired.

3 After KPMC’s motion was fully briefed, the court held a hearing, but the parties did not appear in court and did not respond remotely when the case was called.1 The court granted summary judgment orally and later entered an order articulating its reasoning. The court found that the opposition “does not contest the essential facts” and “essentially concedes that there are no material facts in dispute.” It concluded that the Chaudharis were not indispensable parties to the unlawful detainer case, that KPMC’s lawsuit was not barred by res judicata, and that KPMC did not waive its rights against the Chaudharis. The court also rejected the Chaudharis’ argument that KPMC had not submitted sufficient evidence of damages. It noted that the Chaudharis failed to object to KPMC’s request for judicial notice of the unlawful detainer judgment, and concluded that the unlawful detainer judgment “reflect[s] a judicial determination that KPMC has been damaged in the amount of

1 On appeal, the Chaudharis argue they were denied the opportunity to be heard because their counsel appeared telephonically at the hearing but “the line went dead.” However, this assertion is based on a legal filing, not a sworn affidavit or declaration. The record does not include any reporter’s transcript of the hearing nor any agreed or settled statement of what occurred. (Cal. Rules of Court, rules 8.130(h), 8.137.) “ ‘It is the burden of appellant to provide an accurate record on appeal to demonstrate error. Failure to do so precludes an adequate review . . . .’ ” (In re Marriage of Obrecht (2016) 245 Cal.App.4th 1, 9.) “ ‘We must therefore presume that what occurred at that hearing supports the judgment.’ ” (Ibid.)

4 $192,420.78.” The trial court entered judgment in favor of KPMC against the Chaudharis.2 The Chaudharis timely appealed. DISCUSSION I. Applicable Legal Principles and Standard of Review Summary judgment is appropriate if there are no triable issues of material fact and the moving party is entitled to judgment as a matter of law. (Code Civ. Proc.,3 § 437c, subd. (c); Regents of University of California v. Superior Court (2018) 4 Cal.5th 607, 618.) A plaintiff moving for summary judgment must “prove[] each element of the cause of action entitling the party to judgment on the cause of action.” (§ 437c, subd. (p)(1); Aguilar v. Atlantic Richfield Co. (2001) 25 Cal.4th 826, 853 (Aguilar).) The plaintiff need not “disprove any defense asserted by the defendant.” (Aguilar, at p. 853.) If the plaintiff satisfies this initial burden, the burden shifts to the defendant to present evidence demonstrating there is a triable issue of material fact “as to the cause of action or a defense thereto” based on specific facts. (§ 437c, subd. (p)(1); Aguilar, supra, 25 Cal.4th at p. 850.) To support the existence of

2 KPMC’s lawsuit also named as defendants Mi Young Chung and Yeon Min Chung, the owners of Midtown Mart. The Chaudharis filed cross-claims against Midtown Mart and the Chungs. KPMC also moved for summary judgment against the Chungs, and judgment was entered jointly and severally against the Chaudharis and the Chungs. The Chungs are not parties to this appeal, and the Chaudharis’ cross-claims are not at issue in this appeal.

3 All undesignated statutory references are to the Code of Civil Procedure.

5 a disputed fact, the defendant “must state . . .

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Leonard v. Rose
65 Cal. 2d 589 (California Supreme Court, 1967)
Saberi v. Bakhtiari
169 Cal. App. 3d 509 (California Court of Appeal, 1985)
Balassy v. Superior Court
181 Cal. App. 3d 1148 (California Court of Appeal, 1986)
Archdale v. American International Specialty Lines Insurance
64 Cal. Rptr. 3d 632 (California Court of Appeal, 2007)
Liebovich v. Shahrokhkhany
56 Cal. App. 4th 511 (California Court of Appeal, 1997)
Millikan v. American Spectrum Real Estate Services California, Inc.
12 Cal. Rptr. 3d 459 (California Court of Appeal, 2004)
California School of Culinary Arts v. Lujan
4 Cal. Rptr. 3d 785 (California Court of Appeal, 2003)
Hepner v. Franchise Tax Board
52 Cal. App. 4th 1475 (California Court of Appeal, 1997)
Vallely Investments, L.P. v. BancAmerica Commercial Corp.
106 Cal. Rptr. 2d 689 (California Court of Appeal, 2001)
Glendale Federal Bank v. Hadden
87 Cal. Rptr. 2d 102 (California Court of Appeal, 1999)
Aguilar v. Atlantic Richfield Co.
24 P.3d 493 (California Supreme Court, 2001)
Richman v. Hartley
224 Cal. App. 4th 1182 (California Court of Appeal, 2014)
DKN Holdings LLC v. Faerber
352 P.3d 378 (California Supreme Court, 2015)
Hampton v. County of San Diego
362 P.3d 417 (California Supreme Court, 2015)
Obrecht v. Obrecht
245 Cal. App. 4th 1 (California Court of Appeal, 2016)
Tisdale v. Bryant
177 P. 510 (California Court of Appeal, 1918)
Sample v. Fresno Flume & Irrigation Co.
61 P. 1085 (California Supreme Court, 1900)
Pringle v. Wilson
104 P. 316 (California Supreme Court, 1909)
The Regents of the University of California v. Superior Court
413 P.3d 656 (California Supreme Court, 2018)
Jameson v. Desta
420 P.3d 746 (California Supreme Court, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
KPMC v. Chaudhari CA2/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kpmc-v-chaudhari-ca23-calctapp-2024.