Palumbo v. Westley CA2/2

CourtCalifornia Court of Appeal
DecidedFebruary 1, 2023
DocketB317641
StatusUnpublished

This text of Palumbo v. Westley CA2/2 (Palumbo v. Westley CA2/2) 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
Palumbo v. Westley CA2/2, (Cal. Ct. App. 2023).

Opinion

Filed 2/1/23 Palumbo v. Westley CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SECOND APPELLATE DISTRICT

DIVISION TWO

VICTOR PALUMBO et al., B317641

Plaintiffs and (Los Angeles County Respondents, Super. Ct. No. LC104523)

v.

DAVID WESTLEY et al.,

Defendants and Appellants.

HAN REALTY CORPORATION et al.,

Cross-complainants and Appellants,

VICTOR PALUMBO et al.,

Cross-defendants and Respondents. APPEAL from orders of the Superior Court of Los Angeles County, Huey P. Cotton, Jr., Judge. Affirmed. Nick A. Alden for Defendants, Cross-complainants and Appellants. GreenblattLoveridge, Fredric J. Greenblatt and Lisa L. Loveridge for Plaintiffs, Cross-defendants and Respondents Victor Palumbo and Nicole Palumbo. Clyde & Co US, Douglas J. Collodel; Carlson Law Group and Jose A. Mendoza for Cross-defendants and Respondents First American Team, Inc., Steve Sothear Vong and Adrian Karasek.

******

David Westley, Victoria Westley, and Han Realty Corporation (collectively Westley) purport to appeal from denials of Westley’s motions for summary adjudication against plaintiffs, cross-defendants and respondents Nicole Palumbo and Victor Palumbo (collectively the Palumbos), and cross-defendants and respondents Adrian Karasek, Steve Sothear Vong and First American Team, Inc. (FATI) (collectively cross-defendants), in this litigation involving a real property sale. The denials of Westley’s motions for summary adjudication are not appealable orders and we therefore decline to discuss them. (Federal Deposit Ins. Corp. v. Dintino (2008) 167 Cal.App.4th 333, 343.) Westley’s notice of appeal cites only Code of Civil Procedure section 904.1, subdivision (a)(3)-(13), which provides no authority for an appeal of denials of motions for summary adjudication. Another issue raised in this appeal is the propriety of the trial court’s order granting a motion for good faith settlement, which resulted in the dismissal of cross-defendants from the

2 proceedings. The remedy to challenge a trial court’s grant of a motion for good faith settlement is via a writ petition. (Code Civ. Proc., § 877.6, subd. (e);1 Main Fiber Products, Inc. v. Morgan & Franz Ins. Agency (1999) 73 Cal.App.4th 1130, 1135.) On December 27, 2021, Westley filed a petition for writ of mandate in this court challenging the trial court’s order granting the motion for good faith settlement. This court denied the writ on December 30, 2021. (Westley v. Superior Court (B317220).) There is a split of authority as to whether a determination of good faith settlement may be reviewed in an appeal following the denial of a writ. (See Pacific Fertility Cases (2022) 78 Cal.App.5th 568, 579, 580-581, review granted, Aug. 17, 2022, S275134 (Pacific Fertility) [filing of a petition for writ of mandate is the exclusive means for obtaining appellate review of a trial court’s good faith settlement determination]; Maryland Casualty Co. v. Andreini & Co. (2000) 81 Cal.App.4th 1413, 1423 (Maryland Casualty) [holding that § 877.6, subd. (e) does not foreclose postjudgment review of determination of good faith settlement]; Main Fiber Products, Inc. v. Morgan & Franz Ins. Agency, supra, 73 Cal.App.4th at p. 1135 [holding that pretrial petition for writ of mandate is the exclusive means of review of determination of good faith settlement].) We choose to follow Maryland Casualty in this matter and address the good faith determination settlement. We find Westley has forfeited substantive review of the settlement, and no due process violation occurred in the trial court’s determination of good faith settlement.

1 All further undesignated statutory references are to the Code of Civil Procedure.

3 Finally, Westley’s appeal addresses one order that is directly appealable prior to final judgment: the trial court’s order granting cross-defendants’ motion to disqualify Westley’s counsel, Nick Alden, as trial counsel.2 We find that the trial court did not abuse its discretion in disqualifying Alden because he has a financial interest in the property that is the subject of this litigation and because he is a key percipient witness in the litigation. As set forth below, the order disqualifying Alden from acting as Westley’s counsel in the litigation is affirmed.

BACKGROUND3 This ongoing litigation involves disputed obligations with respect to a residential real estate transaction. The following is a brief explanation of the relevant facts. In 2011, Westley defaulted on mortgage payments on the home located at 4950 Woodley Ave., Encino, California (the

2 In spite of his disqualification, Alden subsequently filed a notice of appeal on behalf of Westley and submitted all appellate briefs on behalf of Westley in this appeal. We sought supplemental briefing from the parties on the question of whether the notice of appeal was valid and whether Alden could properly appear before this court on behalf of appellants. The parties directed us to URS Corp. v. Atkinson/Walsh Joint Venture (2017) 15 Cal.App.5th 872, 887, which created a “bright line rule” that “appeal of an order disqualifying an attorney automatically stays enforcement of the order.” We therefore permit the appeal to proceed with Alden as counsel. We disregard arguments made in the supplemental briefing that went beyond the scope of the inquiry. 3 Trial has not yet occurred in this matter, therefore all factual statements are unproven allegations.

4 property). On approximately December 7, 2011, Bank of America initiated nonjudicial foreclosure on the property by recording a notice of default. In January 2012, Westley hired Alden. Shortly after he was hired, Alden introduced Westley to Karasek. Karasek was introduced as a real estate agent specializing in short sales. Subsequently, Westley, Karasek and Alden had a few meetings to discuss the possibility of short selling the property. Litigation ensued among Westley, Bank of America and the Woodley Trust (the purported buyer in the foreclosure sale) regarding the foreclosure proceedings. In August 2013, Westley hired Karasek to list the property for sale. Karasek listed FATI as the broker, operating under the license of Vong. The parties dispute whether Karasek was aware of the encumbrances on the property. Alden has produced testimony in this litigation that he informed Karasek of the liens on the property and “repeatedly emphasis [sic] to Karasek the need to inform potential buyers and agents that the property is in litigation.” On March 17, 2014, Karasek produced a residential purchase agreement from the Palumbos. Counteroffers were exchanged, and on March 21, 2014, escrow was opened. Subsequently, the Palumbos refused to sign the escrow instructions until the liens on the property were removed. On March 27, 2014, the Palumbos obtained a preliminary title report showing that the property was in litigation and encumbered by about $3.8 million in liens. The Palumbos claim that they were not informed of the litigation in the sellers’ disclosures provided to the Palumbos and their real estate brokers. They were told that Westley was taking action to clear the issues disclosed on

5 the preliminary title report. The Palumbos decided to wait and see if Westley could clear title through a quiet title action so that the escrow could be concluded. The parties executed at least two extension of time addendums to the close of escrow.

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