Meyer v. Thuesen CA1.3

CourtCalifornia Court of Appeal
DecidedDecember 20, 2013
DocketA136848
StatusUnpublished

This text of Meyer v. Thuesen CA1.3 (Meyer v. Thuesen CA1.3) 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
Meyer v. Thuesen CA1.3, (Cal. Ct. App. 2013).

Opinion

Filed 12/20/13 Meyer v. Thuesen CA1.3 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION THREE

LUCKY MEYER, Defendant and Appellant, A136848 v. VICTOR C. THUESEN, (Napa County Super. Ct. No. 26-57184) Plaintiff and Respondent.

Lorene “Lucky” Meyer (appellant), in pro per, appeals from a judgment ordering her to pay $76,369.05 in attorney fees and costs to her former attorney, Victor C. Thuesen (respondent). She contends: (1) the fee agreement she and respondent entered into was unconscionable or voidable; (2) the trial court erred in denying her motion for a continuance of the trial; (3) the trial court made certain discovery errors; (4) respondent committed fraud upon the court. We reject the contentions and affirm the judgment. FACTUAL AND PROCEDURAL BACKGROUND In 2008, appellant, who had been demoted from her position with her employer, California Department of Mental Health (DMH), was reinstated after successfully challenging that demotion before the California State Personnel Board (the Board). DMH filed a petition for a writ of mandate seeking to set aside the Board’s decision, and in October 2009, appellant retained respondent as her attorney to defend against the petition. Appellant, represented by respondent, prevailed in the action, and DMH appealed. In early 2010, appellant entered into a second legal services agreement (the

1 Agreement) with respondent under which respondent agreed to represent appellant on the appeal. By the terms of the Agreement, respondent was to receive compensation for representing appellant by receiving a percentage of any recovery if the Court of Appeal affirmed the trial court’s judgment. The Agreement permitted respondent to withdraw as appellant’s attorney if, among other things, appellant’s “conduct renders it unreasonably difficult for the attorney to carry out the employment effectively.” The Agreement provided that in the event of such a withdrawal, “client will be obligated to pay Attorney out of the recovery a reasonable attorney’s fee for all services provided, and to reimburse Attorney out of the recovery for all costs advanced, before the withdrawal.” On June 25, 2010, respondent filed appellant’s opening brief with this court. On or about September 17, 2010, after the case was fully briefed, respondent filed a motion requesting to withdraw as appellant’s appellate attorney. Appellant opposed the motion, and we granted the request on September 28, 2010. After oral argument on the matter, we issued an opinion affirming the trial court’s judgment. Thereafter, in a letter dated March 30, 2011, DMH informed appellant that it owed her $161,712.88 for the salary difference between her original position and the position to which she was demoted, overtime of $79,974.72, and interest, which was $26,913.89 as of March 31, 2011. On September 22, 2011, respondent filed a complaint against appellant seeking attorney fees and costs from appellant. He alleged he performed the duties for which he was retained and had succeeded in defeating DMH’s writ petition and appeal. He alleged that the reasonable value of the services performed by him was $78,359.20 and that appellant had told him “she has no intention of paying for legal services to [respondent] from any compensation that she receives as a result of [his] efforts on her behalf.” On August 7, 2012, the matter went to trial, and both parties testified and offered various exhibits into evidence. Thereafter, the trial court issued a tentative ruling on September 17, 2012. It noted, as a “threshold matter,” that appellant, by prior court order, had been “deemed to have admitted . . . Requests for Admissions . . . that [respondent] propounded to [appellant] on April 23, 2012.” The court found that those

2 admissions addressed the ultimate issues in the case and supported a ruling in respondent’s favor. The court further found, “Even if the admissions are not considered, however, there was ample evidence at trial that [respondent] fully and competently performed all of the services that he was retained to perform.” The court noted that respondent withdrew as appellant’s attorney only after completing “virtually all of the legal work” that needed to be performed. It stated, “The only service he did not provide was appearing at oral argument before the Court of Appeal. The testimony was uncontradicted . . . There is no credible reason to believe that [appellant’s] appearance in pro per at oral argument changed the outcome in her favor. It is reasonable to conclude that [respondent’s] significant efforts resulted in the favorable decision.” The court stated it had reviewed respondent’s time log and believed the time he spent on the case and the rates were reasonable. The court further found that appellant’s defenses lacked merit and that she had “received exactly what she retained [respondent] to do: an order for reinstatement in her job and back pay.” The court noted that although appellant was “very vague and evasive” about how much DMH had paid her, she did state she had received “$100,000 and change” as of June 2012 and believed she was not going to receive “even $100,000 more,” or that she was going to receive “more than the $268,601.49 in payments reflected in the March 30, 2011, letter from [DMH].” The court found that appellant was going to receive at least $268,601.49 in payments, “more than enough to compensate [respondent] the reasonable value of his services.” Noting that respondent would have been entitled to $107,000—40 percent of appellant’s recovery under the Agreement—if he had not withdrawn, the court found, “Given that the only services left to be performed was an appearance at oral argument, $75,240 is well within the reasonable recovery contemplated by the Agreement.” The trial court found that appellant owed respondent a total of $76,369.05 in fees and costs, and entered judgment in favor of respondent and against appellant in that amount.

3 DISCUSSION Validity of Agreement Appellant contends the Agreement is “unconscionable,” is “voidable,” and “should be voided.” We reject the contention. Unconscionability has both a “procedural” and a “substantive” element, with the former focusing on “oppression” or “surprise” due to unequal bargaining power, and the latter on “overly harsh” or “one-sided” results. (Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, 114.) Procedural unconscionability “focuses on the manner in which the contract was negotiated and the circumstances of the parties,” while “[s]ubstantive unconscionability focuses on the actual terms of the agreement.” (American Software, Inc. v. Ali (1996) 46 Cal.App.4th 1386, 1390.) Procedural and substantive unconscionability must both be present in order for a court to exercise its discretion to refuse to enforce a contract or clause, although they need not be present in the same degree. (Armendariz v. Foundation Health Psychcare Services, Inc., supra, 24 Cal.4th at p. 114.) Courts use a “sliding scale” approach, such that “the more substantively oppressive the contract term, the less evidence of procedural unconscionability is required to come to the conclusion that the term is unenforceable, and vice versa.” (Ibid.) Appellant’s argument is not entirely clear, but it appears she is arguing that there was procedural unconscionability because respondent, an experienced employment attorney, had “a great deal more bargaining power and a tremendous advantage” over her.

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Bluebook (online)
Meyer v. Thuesen CA1.3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meyer-v-thuesen-ca13-calctapp-2013.