Orion Communications v. Super. Ct.

California Court of Appeal·Decided May 14, 2014·No. D064979·Published

Opinion

Filed 5/14/14 CERTIFIED FOR PUBLICATION

COURT OF APPEAL, FOURTH APPELLATE DISTRICT DIVISION ONE

STATE OF CALIFORNIA

ORION COMMUNICATIONS, INC., et D064979 al., (San Diego County Super. Ct.

Petitioners, No. 37-2009-00087082-CU-BT-CTL)

v.

THE SUPERIOR COURT OF SAN DIEGO COUNTY,

Respondent;

SAMEIS HOLDINGS, LLC, Real Party in Interest.

PETITION for writ of mandamus challenging order of the Superior Court of San Diego County, Timothy B. Taylor, Judge. Petition granted.

Chapin Fitzgerald, Kenneth M. Fitzgerald and Jennifer Arnold for Petitioner Orion Communications, Inc.

Moscone Emblidge Sater & Otis, G. Scott Emblidge and Matthew K. Yan for Petitioners City of San Diego and TEGSCO, LLC.

No appearance for Respondent.

Broker & Associates and Jeffrey W. Broker for Real Party in Interest.

Orion Communications, Inc., TEGSCO, LLC, doing business as San Francisco AutoReturn, and City of San Diego (together Orion) filed a petition for writ of mandamus challenging an order granting a Code of Civil Procedure1 section 170.6 peremptory challenge filed by Sameis Holdings, LLC (Sameis) after Orion filed a motion to add Sameis as a judgment debtor along with the original judgment debtor, Dispatch & Tracking Solutions, LLC (DTS). Orion contends the trial court erred by granting the section 170.6 peremptory challenge because Sameis is not a party to the action within the meaning of section 170.6. Orion alternatively contends that because DTS previously filed a section 170.6 peremptory challenge and there is insufficient evidence to support a finding that the interests of DTS and Sameis are substantially adverse, the one challenge per side rule applies to bar a subsequent section 170.6 peremptory challenge by Sameis. Because we agree with Orion's second contention, we grant the petition.

FACTUAL AND PROCEDURAL BACKGROUND2 In 2009, Authorized City Towing and other plaintiffs (together ACT) filed a first amended complaint against the City of San Diego (City), TEGSCO, LLC, doing business

1 All statutory references are to the Code of Civil Procedure unless otherwise specified.

2 Because the factual and procedural background of the main civil action is not material to our disposition of the instant petition, we provide only a brief summary of the facts and procedural events in the action.

as AutoReturn (AutoReturn), DTS and other defendants, apparently arising out of City's 2008 decision to terminate its contract with ACT for a computer-based system for managing the towing of vehicles, and instead award the contract to AutoReturn.

In 2011, DTS filed a first amended cross-complaint against Orion, and other cross-

defendants alleging causes of action for misappropriation of trade secrets. In January 2012, DTS filed a section 170.6 peremptory challenge to San Diego County Superior Court Judge Gonzalo Curiel. The challenge was granted and the case was reassigned to San Diego County Superior Court Judge Timothy Taylor. Thereafter, the trial court (Judge Taylor) granted Orion's motions for summary judgment on DTS's cross- complaint. The court also awarded Orion Communications, Inc., attorney fees of $120,000 and City and AutoReturn attorney fees of $450,000 pursuant to Civil Code section 3426.4. On February 28, 2013, the trial court entered an amended judgment reflecting its summary judgment and awards of attorney fees against DTS.

Apparently after unsuccessful efforts to enforce the judgment against DTS, Orion filed a motion to amend the judgment to add Sameis as a judgment debtor. Orion argued Sameis was the alter ego of DTS and was liable as the successor to DTS's business. Sameis filed its opposition to the motion.

On or about November 1, 2013, Sameis filed a section 170.6 peremptory challenge to Judge Taylor, asserting it was a proposed party in the action under the motion to amend and stating its belief a fair and impartial trial or hearing could not be had before him. Orion filed its opposition to the peremptory challenge, asserting Sameis was not a party to the action and therefore could not make a challenge under section 170.6. Orion

alternatively asserted that even were Sameis a party to the action, Sameis was on the same side as DTS and, because DTS had already exercised its side's only section 170.6 peremptory challenge, there was no remaining peremptory challenge available.

On November 6, 2013, the trial court issued the instant order (Order) granting Sameis's section 170.6 peremptory challenge. The court stated: "There is much to recommend the position taken by Orion in this matter. . . . [S]ection 170.6 challenges appear to be limited to parties to the action." However, citing our failure to immediately deny a writ petition in another case involving a similar peremptory challenge (Geraci v. Superior Court (D064812)), the trial court apparently concluded Sameis may be considered a party under section 170.6 and granted the peremptory challenge. In so doing, the court did not expressly address Orion's alternative assertion that Sameis was on the same side as DTS and therefore there was no peremptory challenge left for its side to make.

Orion filed the instant petition for writ of mandamus, challenging the Order. It also filed a motion requesting that we take judicial notice of (1) our summary denial of the Geraci writ petition in Case No. D064812 on November 7, 2013, and (2) papers filed in a pending action between Sameis and Orion in the Texas courts.3 Sameis filed a

3 We grant Orion's request that we take judicial notice of the Geraci order and deny its request to take judicial notice of papers filed in the Texas proceeding. (Evid. Code, §§ 451, subd. (a), 452, subd. (c), 459, subd. (a).) Except for the Geraci order, we have restricted our review of the exhibits submitted by both parties to those exhibits presented to and considered by the trial court in deciding Sameis's peremptory challenge. In so doing, we have disregarded all other exhibits in deciding the merits of this case and therefore decline to take the additional action of striking certain exhibits from the record.

preliminary opposition to the petition. We issued an order to show cause why the relief requested in the petition should not be granted. Because Sameis did not timely file an objection, we consider its preliminary opposition to be its return to the order to show cause.

DISCUSSION

I

Section 170.6 Peremptory Challenges Generally "[S]ection 170.6 permits a party to an action or proceeding to disqualify a judge for prejudice based on a sworn statement, without having to establish prejudice as a fact to the satisfaction of a judicial body. [Citation.] If a peremptory challenge motion in proper form is timely filed under section 170.6, the court must accept it without further inquiry." (Stephens v. Superior Court (2002) 96 Cal.App.4th 54, 59.)

"The right to exercise a so-called peremptory challenge against a judge is a creation of statute--it did not exist in the common law predating enactment of section 170.6." (The Home Ins. Co. v. Superior Court (2005) 34 Cal.4th 1025, 1031 (Home Ins.).) Section 170.6 provides:

"(a)(1) A judge, court commissioner, or referee of a superior court of the State of California shall not try a civil or criminal action or special proceeding of any kind or character nor hear any matter therein that involves a contested issue of law or fact when it is established as provided in this section that the judge or court commissioner is prejudiced against a party or attorney or the interest of a party or attorney appearing in the action or proceeding.

(People v. Superior Court (Lavi) (1993) 4 Cal.4th 1164, 1173-1174, fn. 5; People v. Zamora (1980) 28 Cal.3d 88, 96.)

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