Marriage of Pasulka CA4/1

California Court of Appeal·Decided May 5, 2014·No. D062039·Unpublished

Opinion

Filed 5/5/14 Marriage of Pasulka CA4/1 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

In re the Marriage of KATHLEEN and ROBERT PASULKA.

D062039

KATHLEEN PASULKA,

Respondent, (Super. Ct. No. D502885)

v.

ROBERT PASULKA, Appellant.

APPEAL from a judgment of the Superior Court of San Diego County, Lorna A.

Alksne, Judge. Affirmed.

Robert Pasulka, in pro. per., for Appellant.

Kathleen Pasulka, in pro. per.; Stephen Temko for Respondent.

Robert Pasulka appeals the judgment dividing community assets and liabilities in this marital dissolution proceeding. He contends that the trial court made more than a dozen errors on issues ranging from judicial bias, to selecting an alternate valuation date for the family business, to finding that he breached his fiduciary duty to his wife Kathleen

by helping his brother secretly encumber the marital residence with a judgment lien for a debt that had already been repaid. We conclude that Robert has forfeited many of the issues that he raises on appeal because he either failed to properly preserve them below or failed to comply with rules of appellate procedure. For those issues that we reach on the merits, we conclude that Robert has failed to show that the trial court erred. We therefore affirm the judgment.

I.

FACTUAL AND PROCEDURAL SUMMARY A. The Marriage Kathleen and Robert married on June 18, 1994 and separated on January 1, 2007.

They had no children together, but Kathleen had two sons from a prior marriage (Spencer and Jordan Rabin). Kathleen filed a petition for dissolution on April 18, 2007.

Kathleen and Robert were both lawyers when they married. Kathleen was an intellectual property lawyer at a prominent San Diego law firm. Robert's practice involved bankruptcy reorganization, partnership and corporate dissolutions, title work, and real estate litigation. Robert's license to practice law went to inactive status in 2006 or 2007.

At some point during the marriage, the parties agreed that Kathleen would continue practicing law and Robert would pursue other business ventures. One of those ventures was Pacific RO,1 a distributor of water purification products, which Robert

1 "RO" stands for reverse osmosis.

began in 1998. Pacific RO was a sole proprietorship run primarily by Robert, with occasional input from Kathleen. Robert was the company's only employee.

Several of Robert's relatives were involved in similar businesses. His brother, William, ran Midwest RO in Illinois; William's son-in-law ran American RO in Kentucky; and another brother, Joe, ran Atlantic RO in North Carolina. Robert even helped Kathleen's adult son, Spencer, run Western RO during the marriage, but that business later shut down. The family RO businesses transferred funds and inventory among each other, and all had the same trade dress and slogans. As of the date Kathleen and Robert separated, Robert had borrowed approximately $630,000 from William in the form of money and product. B. The Residence After Kathleen and Robert separated, they decided to repair and remodel their residence in anticipation of selling it. Robert, who still lived in the residence with one of Kathleen's sons, oversaw the renovation project. Kathleen contributed $28,000 toward the expenses associated with the residence during the renovation. Kathleen's son moved out in July 2007. The renovation was completed in October 2007 at a total cost of approximately $96,000.

For unspecified reasons, the parties did not sell the residence following completion of the renovation. Kathleen's counsel notified Robert that because he was living in the residence alone, Kathleen would no longer contribute toward the expenses for the residence. Because Robert was unable to afford the residence on his own, he moved out in January 2008 and Kathleen moved in a few months later. She paid all of the expenses

associated with the residence through 2009. Beginning in January 2010, however, Kathleen was no longer able to afford the mortgage on her own due to expenses that she was incurring in this and related litigation, which we discuss, post. She requested that Robert pay half of the mortgage, but he refused. Kathleen attempted to make half payments to her mortgage company, but it rejected the partial payments. C. William and Melanie Pasulka Sue Kathleen and Robert Robert encouraged Kathleen to acknowledge and accept personal liability for the debts owed to William.2 On March 27, 2008, Kathleen notified Robert that she would not consent to granting William a lien against the residence. On April 2, William and his wife, Melanie, filed a complaint for breach of contract against Robert and Kathleen in San Diego Superior Court (Pasulka I). Five days later, without Kathleen's knowledge, Robert stipulated to entry of judgment against himself in the amount of approximately $702,000. As a result of Robert's stipulation, William and Melanie obtained a judgment lien in the approximate amount of $704,000 against the residence. After the lien was recorded, but before Kathleen learned of the lawsuit or the lien, Robert suggested to Kathleen that they stipulate to sell the residence and pay off trust deeds and "other liens

2 At times, the encouragement bordered on extortion. Robert sent Kathleen several messages in which he threatened to disclose private information about her if she did not agree to his proposed terms of settlement. In one e-mail, Robert wrote, "If you don't agree within 24 hours" to "sign a note and deed of trust for my brother Bill in the amount of the $628,701 . . . , I will post a web page which describes your behavior both before and after you moved out. I will send a link to your family members, your friends, and others." When Kathleen did not respond, Robert sent a three-page e-mail to two of Kathleen's relatives in which Robert made derogatory statements regarding Kathleen's private health, medical, and financial information. A few weeks later, Robert forwarded the message to more of Kathleen's relatives. Robert also sent a similar, eight-page letter to several of Kathleen's law firm partners.

of record existing as of the date of th[e] Stipulation." Kathleen did not agree to this proposal.

Kathleen first learned of Pasulka I on June 2, 2008, when she received an e-mail from William and Melanie's counsel attempting to coordinate service of process. Just over a month later, Kathleen was finally served with documents relating to the lawsuit, including Robert's stipulated judgment. It was then that she first learned of the lien against the residence.

Kathleen unsuccessfully sought to stay Pasulka I on the basis that it created a jurisdictional conflict between the civil court and the family court. She also unsuccessfully pursued two writ petitions to this court seeking similar relief. A jury eventually returned a verdict in favor of William and Melanie in October 2009, and a judgment in the amount of $299,000 was entered against Kathleen in February 2010.

Kathleen successfully moved for judgment notwithstanding the verdict in July 2010. Judge John S. Meyer concluded that Robert had already repaid William for the debt on which William and Melanie had sued Kathleen and Robert. William and Melanie appealed, and ultimately settled with Kathleen in November 2011.

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