Molen v. Friedman

75 Cal. Rptr. 2d 651, 64 Cal. App. 4th 1149
CourtCalifornia Court of Appeal
DecidedJune 15, 1998
DocketC026761, C027026
StatusPublished

This text of 75 Cal. Rptr. 2d 651 (Molen v. Friedman) 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
Molen v. Friedman, 75 Cal. Rptr. 2d 651, 64 Cal. App. 4th 1149 (Cal. Ct. App. 1998).

Opinion

75 Cal.Rptr.2d 651 (1998)
64 Cal.App.4th 1149

Michael MOLEN et al., Plaintiffs and Appellants,
v.
Morton L. FRIEDMAN et al., Defendants and Respondents.
Morton L. FRIEDMAN et al., Plaintiffs and Respondents,
v.
Michael MOLEN et al., Defendants and Appellants.

Nos. C026761, C027026.

Court of Appeal, Third District.

June 15, 1998.
Rehearing Denied July 10, 1998.
Review Denied September 2, 1998.

Jim G. Price, Walnut Creek, for Plaintiffs and Appellants and for Defendants and Appellants.

Ordas, Timmons, Owen & Owen, Inc., Allan J. Owen, Sacramento, for Defendants and Respondents and for Plaintiffs and Respondents.

BLEASE, Acting Presiding Justice.

This case arises on consolidated appeals from a judgment in an action which collaterally attacks a default judgment [the collateral action] and from a new judgment in the action in which the default judgment was set aside [the default action].

The original default judgment awarded damages to respondents Morton and Marcy *652 Friedman (the Friedmans) for breach of a commercial lease. The collateral action attacked the default judgment on the ground, inter alia, the damages awarded exceed the relief demanded in the complaint. The matter was tried to the court on the pleadings in the collateral action. In the collateral action the trial court set aside the default judgment and directed that, after a new hearing on damages, a new default judgment be entered in the default action.

Appellants, Michael and Drucilla Molen (the Molens), contend the trial court erred in directing entry of the new default judgment because the complaint in the original default action, measured by the well pleaded complaint doctrine, does not plead a cause of action for breach of a lease or a guarantee nor does it contain allegations required to sustain an award of damages for loss of future rent.

We will affirm the judgments on the ground the well pleaded complaint doctrine does not apply in an action collaterally attacking a default judgment and the complaint provided sufficient notice of the damages sought.

FACTS AND PROCEDURAL BACKGROUND

On March 15, 1994, the Friedmans filed the complaint in the default action. The complaint contains the following pertinent provisions.

"SAC-O-WINGS, doing business as HOOTERS, as tenant, and ... MICHAEL MOLEN, and DRUCILLA MOLEN, as guarantors ... entered into a written lease under date of August 9, 1993, to occupy the premises for a term of ten (10) years, terminating December 31, 2004."
"Defendants have failed and refused to pay the rent and said above-itemized services and costs, in violation of said lease, and there is now due and owing under the terms of said lease the sum of $23,795.34."
"In addition ... there will be additional sums owing for rent, and for specified charges and services under said lease, to the termination thereof, in the sum of $9,000.00 per month for each month under the terms of said lease for rent, [plus] any percentage rent if applicable."

The complaint prays for relief, in pertinent part, as follows.

"For unpaid rent, taxes and other specified charges due and owing, in the sum of $23,795.34;
"2. For rents and other specified charges due after January 1, 1994, to the termination of the lease, in the sum of $9,000.00 per month rent and continuing for said lease term."

The Molens failed to respond to the complaint. The Friedmans took their default and, on September 28, 1994, obtained a judgment against them awarding damages of $1,103,794.34 in the aggregate. The judgment also declares that the lease is terminated. The Molens moved under Code of Civil Procedure section 473 to set aside the default, which was denied. In December 1994 they appealed from the judgment of default and from the motion to set aside the default. The judgment and order were affirmed by this court in March 1996.

On July 2, 1996, the Molens filed the complaint in the collateral action. The complaint alleges, inter alia, the foregoing facts about the default action and that the complaint did not plead contract damages beyond the termination of the lease. It also alleges: (1) the second paragraph of the prayer for relief in the default action "prayed for damages in the amount of $9,000.00 per month from January 1, 1994, to termination of the lease, which was upon entry of judgment, on September 28, 1994, for a total of $72,000.00" and (2) that the judgment in the default action awarded aggregate damages in the amount of $1,192,092.12, exceeding the monetary relief prayed for and that judgment is void.

The collateral action eventually came on for trial. The Molens adduced various items from the record of the default action. The parties argued the matter in a long colloquy with the trial court. The court decided that it would set aside the prior judgment and "have another prove up hearing as to what, if anything, should be granted in favor of the [respondents] in this—the underlying action and that will be the court order."

*653 The trial court then immediately conducted another prove up hearing in the default action and found the aggregate damages to be $925,673. It directed the Friedmans to prepare the judgment.

The Friedmans prepared a judgment in the default action providing for aggregate damages in the amount of $925,673 and a judgment in the collateral action which directed that the judgment in the default action be set aside and replaced by the specified new judgment in the default action, as follows.

"IT IS HEREBY ORDERED ADJUDGED AND DECREED that the judgment heretofore entered in [the default action] is set aside to be replaced by a new judgment entered nunc pro tunc to July 27, 1994, as set forth in the amended judgment entered in that action today in the total amount of $1,023,892.66...."

The Molens appeal from both judgments.

DISCUSSION

The Molens contend the trial court erred in rendering the judgments against them because the Friedmans' complaint in the default action does not plead a cause of action for breach of a lease or a guarantee nor does it contain essential allegations required to sustain an award of damages for loss of future rent.

They argue, in essence, that a default only admits the well pleaded allegations of the complaint and, where those allegations do not state a cause of action or contain all elements essential to support the demand for relief, the judgment is void as to such matters.

The argument fails. The well pleaded complaint doctrine does not apply to a collateral attack upon the complaint.[1]

The Molens' thesis is derived from the following passage in 6 Witkin, California Procedure:

"A defendant who fails to answer admits only facts that are well pleaded. (See 5 [Witkin] Cal. Proc. (4th), Pleading, § 981.) If the complaint fails to state a cause of action or the allegations do not support the demand for relief, the plaintiff is no more entitled to that relief by default judgment than if the defendant had expressly admitted all the allegations. Such a default judgment is erroneous, and will be reversed on appeal. (Williams v. Foss (1924) 69 C.A. 705, 707, 231 P. 766; Rose v. Lawton (1963) 215 C.A.2d 18, 20, 29 C.R. 844, quoting the text; Taliaferro v. Davis (1963) 216 C.A.2d 398, 409, 31 C.R. 164; Vasey v. California Dance Co. (1977) 70 C.A.3d 742, 749, 139 C.R.

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Bluebook (online)
75 Cal. Rptr. 2d 651, 64 Cal. App. 4th 1149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/molen-v-friedman-calctapp-1998.