Post Apple LLC v. Acrew Management CA1/2

CourtCalifornia Court of Appeal
DecidedOctober 29, 2015
DocketA142859
StatusUnpublished

This text of Post Apple LLC v. Acrew Management CA1/2 (Post Apple LLC v. Acrew Management CA1/2) 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
Post Apple LLC v. Acrew Management CA1/2, (Cal. Ct. App. 2015).

Opinion

Filed 10/29/15 Post Apple LLC v. Acrew Management CA1/2 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIRST APPELLATE DISTRICT

DIVISION TWO

POST APPLE LLC et al., Plaintiffs, Cross-defendants and Appellants, A142859 & A143832 v. (Alameda County ACREW MANAGEMENT LLC et al., Super. Ct. No. RG12621598) Defendants, Cross-complainants and Appellants.

These are two consolidated appeals following a court trial of a slander of title action, the one cause of action remaining after a court-supervised settlement conference resolved all other issues between and among the interested parties. The winner in the slander of title action was Acrew Management, LLC (Acrew). The losers were Post Apple, LLC (Post Apple) and Abraham Farag (Farag). Post Apple and Farag (sometimes when referred to collectively, plaintiffs) appeal from the judgment finding them liable for slander of title. Farag, a sophisticated real estate investor, was a significant player here: a 49 percent owner of Post Apple; a principal in two other involved entities; and the person who caused to be recorded, and then testified falsely about, several documents that caused the slander of title—documents, it turned out, that had been post dated. Following five days of trial, the court found for Acrew and against Post Apple and Farag, in a detailed, comprehensive statement of decision, a statement that, among other

1 things, recited Farag’s various misdeeds. Despite all that, plaintiffs filed an opening brief whose “Factual Summary” is all of one page, a bland recitation that ignores all of Farag’s machinations—and his perjury. That brief makes three arguments: (1) slander of title was not proper; (2) Farag was not personally liable; and (3) the $92,054 damages awarded were not supported. We reject the arguments and affirm. Following the judgment in its favor, Acrew moved for attorney fees, based on an attorney fee provision in a document to which neither Acrew nor its adversaries was a party. The trial court denied Acrew fees, and it appeals from the order on that denial. We affirm that order as well. BACKGROUND The Property, the Pleadings, and the Settlement This appeal involves property located at 2390 Sacramento Street, Berkeley (the property), and arises out of a complaint and cross-complaint filed in 2012, in Alameda County Superior Court, Action No. RG 12621598 (the action). The action was not the first action involving the property or the parties, however, which was an unlawful detainer action filed in 2011, which action will be discussed in detail below. Suffice to say here that it was not a run-of-the-mill unlawful detainer case. Rather, it involved issues of title, numerous pleadings, extensive discovery and discovery-related motions, several court appearances and conferences, all culminated by a defense motion for summary judgment/adjudication supported by a declaration from Farag, whose testimony in that declaration caused the landlord to dismiss the case—a declaration, it would develop, that was false. The unlawful detainer dismissed, the action followed. On March 16, 2012 Post Apple filed the action. It alleged one count, for partition, and named two defendants: Acrew, alleged to own 75.8622 percent of the property; and A and R Laundries, LLC (A and R), alleged to be the sole tenant of the property. Acrew answered and also filed a verified cross-complaint naming five cross- defendants: Post Apple; A and R; Develop R2 LLC; Kenneth Mariani; and Farag. The cross-complaint alleged 10 causes of action, styled as follows: (1) declaratory

2 relief; (2) breach of fiduciary duty; (3) partition; (4) ouster; (5) ejectment; (6) quiet title; (7) accounting; (8) slander of title; (9) cancellation of instruments; and (10) violation of California Business and Professions Code section 17200. Post Apple and Farag filed separate verified answers to the cross-complaint.1 The verification to Post Apple’s answer was by Farag, “a manager of Post Apple.” The action was assigned for all purposes to the Honorable Ioana Petrou. The action generated a seven-page register of actions, the particulars of which are not in the record before us. What we do know is that in June 2013 the parties attended a court-supervised settlement conference, the upshot of which was a “settlement on the record,” memorialized in a two-page settlement statement. There, the parties agreed to settle all claims between and among them except Acrew’s slander of title claim against Post Apple and Farag, as to which the settlement statement provided as follows: “The issue of Abraham Farag’s and Plaintiff Post Apple LLC’s liability for any damages for slander of title, including without limitation, attorneys’ fees and punitive damages, shall be submitted to Judge Petrou for a court trial. Each party waives his/her/its right to a jury trial on this issue.” Farag signed the signature page on the settlement statement in three separate places, on behalf of three separate entities: (1) “Post Apple LLC, A California limited liability corporation,” signed as Managing Member; (2) “A and R Laundries LLC, A California limited liability corporation,” signed as Authorized Agent; and (3) “Develop R2 LLC, A California limited liability corporation,” signed as Managing Member. The Trial The slander of title claim proceeded to a five-day court trial before Judge Petrou, beginning on September 30, 2013, and concluding on October 7. There was no court reporter. The parties filed proposed statements of decision, to which the other side filed objections. The matter was submitted on November 7. On December 20 Judge Petrou

1 The record does not reveal the pleadings, if any, filed on behalf of A and R, Develop R2 LLC, or Mariani. However, as indicated below, they remained involved, at least as interested parties.

3 filed her intended tentative ruling and proposed statement of decision, to which Post Apple and Farag objected yet again. On January 28, 2014, Judge Petrou filed her statement of decision finding for Acrew and against Post Apple and Farag. Judge Petrou’s statement began with the preliminary observation that she “did not find Mr. Farag to be credible,” and from there went on with a comprehensive six-page analysis of “facts” and “findings,” followed by a “Judgment” and an indication of damages to be later ascertained. Since there is no reporter’s transcript, we quote extensively from Judge Petrou’s well-written Statement to set forth the pertinent facts: “A. GENERAL BACKGROUND “This case presents an issue regarding the real property located at 2930 Sacramento Street in Berkeley, California (hereinafter ‘the Property’). “In 2007, the Property was owned by Daniel Dumas and Annabelle Constantin, who operated a Laundromat on the premises (Sparkle Clean Wash and Dry). In 2007, Dumas executed a $725,000 note in favor of Geneva Real Estate Investments, Inc. The note was funded by a group of investors, including Ken Marinai, who had a 24.1378% interest in the note. In 2009, Abraham Farag and an associate founded A and R Laundries LLC to purchase the Laundromat business operating on the Property. They did so, and leased the property from Mr. Dumas as of January 1, 2010. Dumas began to default, failing to pay property taxes and the payments to Geneva. The note was taken over by Medallion Servicing, LLC in late 2010 or early 2011. Mr. Farag on behalf of Post Apple made several unsuccessful attempts to purchase the note. “A foreclosure sale was scheduled for April 14, 2011, and then continued to April 21, 2011.

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Post Apple LLC v. Acrew Management CA1/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/post-apple-llc-v-acrew-management-ca12-calctapp-2015.