Pacifica Modesto v. Superior Court CA5

CourtCalifornia Court of Appeal
DecidedOctober 4, 2021
DocketF082869
StatusUnpublished

This text of Pacifica Modesto v. Superior Court CA5 (Pacifica Modesto v. Superior Court CA5) 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
Pacifica Modesto v. Superior Court CA5, (Cal. Ct. App. 2021).

Opinion

Filed 10/4/21 Pacifica Modesto v. Superior Court CA5

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FIFTH APPELLATE DISTRICT

PACIFICA MODESTO LLC et al.,

Petitioners, F082869

v. (Super. Ct. No. 2022881)

THE SUPERIOR COURT OF STANISLAUS COUNTY, OPINION Respondent;

SUNCREST VILLAS MODESTO MAINTENANCE ASSOCIATION,

Real Party in Interest.

THE COURT* ORIGINAL PROCEEDINGS; petition for writ of mandate. Sonny S. Sandhu, Judge. Lee Landrum Marking Ingle, Lee, Landrum & Ingle, David S. Lee, Heather N. Ingle-Gernhardt, and Brian P. McGinley for Petitioners. No appearance for Respondent. Williams & Gumbiner, Scott Williams and Beth C. Tenney for Real Party in Interest. -ooOoo-

* Before Poochigian, Acting P.J., Franson, J. and Peña, J. INTRODUCTION Real party in interest, Suncrest Villas Modesto Maintenance Association (Suncrest), brought an action against Pacifica Modesto LLC, PAC Modesto Inc., Pacifica Companies LLC, ASD Enterprises, Inc., Pacifica Companies, and individuals associated with the entities, including Deepak Israni, Rajib Sengupta, Neil Chaudhuri, Tracy Dalton and Shauna Carson (collectively, petitioners) as well as petitioners’ counsel Ira Gary Wasserman, Deborah Kornheiser and Wasserman Kornheiser (attorney defendants), alleging claims of negligence in the creation of a condominium development and claims of misrepresentation and fraudulent conspiracy in causing Suncrest to release its claims against petitioners. By the time Suncrest filed its second amended complaint against petitioners in September 2018, it had procured and attached exhibits supporting its claims that petitioners, with the assistance of attorney defendants, perpetuated similar fraudulent schemes against at least three other condominium maintenance associations in California. Despite propounding discovery on petitioners on December 1, 2017, they did not provide responses for over three years, forcing Suncrest to file a motion to compel in January 2021. The superior court granted the motion to compel on April 8, 2021, ordered petitioners to provide compliant responses, without objection, on or before May 7, 2021, and sanctioned petitioners and their present counsel a total of $13,680 for their conduct. On June 7, 2021, one month after the discovery responses were due, petitioners filed a petition for writ of mandate with this court challenging the superior court’s discovery order and requesting production of discovery be stayed. By way of its own motion, this court questioned whether petitioners should be sanctioned for filing a frivolous petition or filing a petition solely to cause delay and provided the opportunity for briefing. Reviewing the record, including petitioners’ responsive briefing and oral argument presented on September 28, 2021, we summarily deny the petition for writ of mandate and find sanctions are warranted.

2 STATEMENT OF FACTS Allegations Set Forth in Suncrest’s Third Amended Complaint In the mid-2000’s, petitioners purchased a 48-unit apartment development in Modesto, obtained approval to subdivide the apartments, converted the apartments into individual condominium units, and began marketing the units to the public. Petitioners were required by law to create a homeowner association to govern the development and formed Suncrest on September 11, 2006. Three individuals associated with petitioners were appointed to the initial board of directors of Suncrest, and they, in turn, hired the attorney defendants to represent Suncrest. Suncrest alleges petitioners and attorney defendants entered into the following fraudulent scheme: petitioners appointed their own individuals to be representatives to the board of directors of Suncrest, who in turn hired attorney defendants to represent Suncrest. The developer board members also allowed an unsuspecting homeowner inexperienced in construction disputes to be appointed to the board of Suncrest to present the appearance of legitimacy while maintaining control of the majority of the board. Suncrest alleges the developer board members, along with attorney defendants, fabricated a sham construction dispute for the purpose of entering into a settlement with petitioners, and to cause it to waive is right to assert claims relating to latent construction defects arising from the development in the future. The Suncrest board members associated with petitioners persuaded the unsuspecting homeowner board member to execute the settlement agreement waiving Suncrest’s future claims against petitioners in exchange for $36,000. The developer board members then resigned from the board within months of the settlement agreement being executed. Suncrest hired its current attorneys in 2016 and filed the instant construction defect action against petitioners. Only after the action was filed was

3 Suncrest made aware of the earlier settlement agreement in which it had waived future claims against petitioners. To provide context and support for the allegations petitioners were engaged in a fraudulent scheme, Suncrest procured and attached to its complaint detailed records indicating petitioners, with the assistance of attorney defendants, engaged in the same or similar fraudulent scheme. Specifically, the records indicated petitioners entered into at least three other settlement agreements in 2009 with newly formed condominium maintenance associations throughout California while they controlled the majority of the boards of those associations. Facts Relating to Relevant Discovery Suncrest filed its original complaint on December 8, 2016, alleging claims related to construction defects with the development. On December 1, 2017, Suncrest propounded special interrogatories and requests for production of documents on petitioners and attorney defendants to identify and produce settlement agreements that petitioners, with the assistance of attorney defendants, entered into with other homeowner associations and the names of those other homeowner associations. For the sake of efficiency, Suncrest and petitioners agreed to wait to dispute petitioners’ failure to respond to discovery while the same discovery issues were being disputed between Suncrest and attorney defendants. The parties believed the court’s resolution in that matter would resolve the dispute between Suncrest and petitioners as well. The superior court issued its ruling on the discovery disputes between Suncrest and attorney defendants on July 24, 2019. It provided the following explanation why the requested discovery was relevant and should be produced:

“The evidence sought is circumstantial evidence of other similar settlement release agreements that may show a modus operandi allegedly employed by the developer defendants and the attorney defendants. The

4 circumstantial evidence to support Plaintiff’s allegations includes the settlement and release agreement in this case to show aspects of a modus operandi when compared to the other three agreements that have been uncovered so far. The discovery sought by the Plaintiff may lead to additional admissible evidence of other instances where the defendant developers had members on HOA boards who were in a position to manipulate settlement release agreements under circumstances similar to those alleged in this case.

“Circumstantial evidence is good evidence; and it is almost invariably the only evidence available to show fraudulent intent.…

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Pacifica Modesto v. Superior Court CA5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacifica-modesto-v-superior-court-ca5-calctapp-2021.