Nebel v. Sulak

73 Cal. App. 4th 1363, 87 Cal. Rptr. 2d 385, 99 Daily Journal DAR 8006, 99 Cal. Daily Op. Serv. 6285, 1999 Cal. App. LEXIS 728
CourtCalifornia Court of Appeal
DecidedAugust 4, 1999
DocketNo. E023264
StatusPublished
Cited by15 cases

This text of 73 Cal. App. 4th 1363 (Nebel v. Sulak) 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
Nebel v. Sulak, 73 Cal. App. 4th 1363, 87 Cal. Rptr. 2d 385, 99 Daily Journal DAR 8006, 99 Cal. Daily Op. Serv. 6285, 1999 Cal. App. LEXIS 728 (Cal. Ct. App. 1999).

Opinion

Opinion

GAUT, J

1. Introduction

This appeal raises several questions of significance. First, to what extent may a disinterested third party observe a judgment debtor examination, and, [1366]*1366as a collateral issue, may a nonlawyer conduct a judgment debtor examination to enforce a small claims judgment?

We hold that a judgment debtor examination is a judicial proceeding open to the public. (Code Civ. Proc., §§ 124 and 708.110, subd. (a).)1 Additionally, the examination must be conducted by a judicial officer or a member of the State Bar of California. (§ 708.140, subd. (b).) In the present case, the court erred by granting an injunction, the effect of which was entirely to prohibit defendant Joseph Sulak, Sr. (Sulak) from attending the subject judgment debtor examinations. The examinations, all of which took place in the courthouse, were not private. Sulak was entitled to observe the examinations in a way that did not unduly interfere with them. Therefore, the injunction issued against Sulak was overly broad. Furthermore, Sulak is correct that plaintiff Pat Nebel (Nebel) should not be conducting judgment debtor examinations unless she is a member of the Bar. We reverse the judgment.

2. Factual and Procedural Background

The record reflects that Nebel, who is apparently not a licensed attorney, routinely conducts judgment debtor examinations at the Three Lakes Judicial District courthouse on behalf of judgment creditors in small claims cases. Beginning in the latter part of 1997, Sulak, who is a licensed process server, has observed Nebel performing the examinations. Nebel claims his presence disturbs the debtors and interferes with the examinations. The record more particularly shows the following sequence of events.

On February 18, 1998, Nebel conducted a judgment debtor examination of Martha Ann Orta and Anthony Navarro Orta on behalf of a judgment creditor, the Farm Property Owners Association. The record does not show that Sulak observed this examination.

On March 4 and 25, 1998, Nebel conducted a judgment debtor examination of Mike Oliva on behalf of the Farm Property Owners Association. On March 25, Sulak watched from the back of a courtroom as Nebel completed the examination of Mike Oliva.

On May 13, 1998, an attorney, Skip Southwick, conducted a judgment debtor examination of Mario J. Ybarra and Deborah G. Ybarra on behalf of Horsethief Canyon Ranch Maintenance Corporation. Nebel was present to record the debtor’s responses. The examination took place in the hallway outside the courtroom. From a distance of 10 feet, Sulak observed the [1367]*1367examination and refused to depart. Afterwards Sulak approached Nebel and said that he would continue to observe any examinations conducted by Nebel.

On May 27, 1998, Nebel arrived at the courthouse for a judgment debtor examination. Sulak was present. Nebel asked for and was granted permission to use a vacant room to conduct the examination without interference from Sulak.

On June 3 and 11, 1998, in superior court, Nebel filed a combined petition for injunction prohibiting harassment and application for a temporary restraining order directed at Sulak. On June 29, 1998, the court granted an order to show cause and a temporary restraining order. The order provided that Sulak stay 25 yards away from Nebel’s person, residence, and workplace. Additionally, and somewhat inconsistently, the order provided that Sulak was prohibited from any area, 10 yards in radius, at the Three Lakes courthouse where Nebel conducted debtor’s examinations.

On July 20, 1998, Sulak filed a response and a cross-complaint for declaratory relief and injunction.

On July 22, 1998, the court conducted a brief hearing in which it questioned both the parties. On July 24, 1998, it then issued its ruling, granting a restraining order and ordering that Sulak stay 25 feet away from Nebel. The duration of the order was for six months. On July 29, 1998, the court also issued a ruling that stated “Petition for Cross-Complaint re: Declaratory Relief/Injunction Denied.”

This appeal followed.

3. Discussion

At the outset, we consider whether the appeal is moot. We hold it is not for two reasons. First, although the injunction expired on January 24, 1999, the issues are of general interest and are likely to recur.

“ ‘As a general rule, when an event has occurred pending appeal from a lower court judgment which renders it impossible for the appellate court to grant an appellant any effectual relief whatever, the appeal will be dismissed as moot. [Citation.] There is a significant exception to this rule, [1368]*1368however, where the appeal raises an important issue that is likely to recur, yet evade review. [Citations.] If an action involves a matter of continuing public interest and the issue is likely to recur, a court may exercise an inherent discretion to resolve that issue, even though an event occurring during its pendency would normally render the matter moot.’ ” (Hebert v. Los Angeles Raiders, Ltd. (1991) 23 Cal.App.4th 414, 421 [29 Cal.Rptr.2d 540], citing Schraer v. Berkeley Property Owners’ Assn. (1989) 207 Cal.App.3d 719, 728 [255 Cal.Rptr. 453].)

The instant appeal presents significant issues involving the correct procedures for a judgment debtor examination. Those issues are implicated in Sulak’s cross-complaint, in which he seeks in part affirmative relief for Nebel’s alleged unfair business practices. On appeal, Nebel focuses entirely upon the propriety of the injunction and ignores the issue of whether she, a nonlawyer, can properly conduct a debtor’s examination. But this question bears on the relief sought by defendant in his cross-complaint and, therefore, should not be disregarded. Applying a strict standard of mootness, such as respondent would have us do, would effectively exempt these important questions from judicial review. Accordingly, we decline to dismiss the appeal as moot and instead proceed to a consideration of the merits.

Two statutory schemes are involved: (1) the statutes governing procedures in small claims court and (2) the enforcement of judgments law. The small claims law provides, with certain exceptions not pertinent here, that no party to a small claims action can be represented by an attorney. (§ 116.530.) Any party not a natural person may be represented only through a regular employee, or a duly appointed or elected officer or director, who is employed, appointed, or elected for purposes other than solely representing the party in small claims court. (§ 116.540, subds. (b) and (c).) A partnership may be represented by a partner. (§ 116.540, subd. (c).) The small claims law further provides that a judgment debtor shall complete a judgment debtor’s statement of assets. (§ 116.830; Cal. Rules of Court, rule 982.7(a).) A small claims judgment may also be enforced as provided by the enforcement of judgments law. (§ 116.820, subd. (a).)

Under the enforcement of judgments law, a judgment debtor may be compelled to appear before the court or an appointed referee for examination regarding his or her assets. (§ 708.110.) Only a member of the State Bar of California is eligible for appointment as a referee. (§ 708.140, subd. (b).)

Additionally, a judgment debtor examination is a public proceeding.

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73 Cal. App. 4th 1363, 87 Cal. Rptr. 2d 385, 99 Daily Journal DAR 8006, 99 Cal. Daily Op. Serv. 6285, 1999 Cal. App. LEXIS 728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nebel-v-sulak-calctapp-1999.