(PS) DeMartini v. DeMartini

District Court, E.D. California·Decided June 23, 2025·No. 2:14-cv-02722·Unknown

Opinion

TIMOTHY P. DEMARTINI, et al., No. 2:14-cv-02722-DJC-CKD

Plaintiffs, v. MICHAEL J. DEMARTINI, et al., Defendants.

Before the Court is Defendants’ Motion to Dismiss Plaintiffs’ partition claim,

wherein Defendants argue that claim is barred as a matter of law because it was

required to be brought in the Parties prior state court action. Plaintiffs, in turn, argue

the Court should deny dismissal and also impose sanctions on Defendants as they

have moved for dismissal of the partition claim on that same basis numerous times

before, and their m otion has been denied each time. Before the Court is also Plaintiffs’ Motion for Reconsideration of the Court’s prior denial of Plaintiffs’ Motion for Attorneys’ Fees in 2019. Therein, Plaintiffs argue that the controlling law has changed and new evidence has come to light necessitating reconsideration of the denial. Finally, Defendants have moved to quash or stay enforcement of the Writ of Execution issued in this matter on May 14, 2025, for $113,838.94, arguing the doctrine of equitable setoff extinguishes Plaintiffs’ claim against them as Plaintiffs

owes them the significantly larger sum of $134,673.60, and Defendants have

appealed the Court’s judgment forming the basis for the Writ of Execution, weighing

in favor of a stay.

Having considered the Parties’ briefings and arguments, the Court will deny

Defendants’ Motion to Dismiss and Plaintiffs’ Motions for Sanctions. However, the

Court will grant Plaintiffs’ Motion for Reconsideration. The Court will also grant

Defendants’ Ex Parte Emergency Motion and stay enforcement of the Writ of

Execution until Defendants’ appeal has been resolved.

The Parties and Court are well acquainted with the factual background of this

matter as laid out in the Court’s prior orders. (See ECF No. 483 at 2–4; ECF No. 529 at

1–6.) As is relevant here, Plaintiffs Timothy DeMartini and Margie DeMartini brought

this partition action on September 15, 2014, seeking partition of real property located

at 12757, 12759, and 12761 Loma Rica Drive, Grass Valley, California (the “Property”)

and asserting related claims. (ECF Nos. 1, 225.) The Court held a bench trial on

Plaintiffs’ partition claim in April 2018, and issued an Interlocutory Judgment of

Partition on May 30, 2018, ordering the Property be partitioned in kind. (ECF No.

361.)

On May 10, 2019, Plaintiffs filed a Motion for Attorneys’ Fees, seeking allocation

of statutory partition costs incurred from the inception of the case through February

2019. (ECF No. 414.) The Court denied the motion in finding that the Interlocutory

Judgment of Partition was a final order, and that Plaintiffs’ motion came too late after

entry of final judgment under Local Rule 293(a). (ECF No. 428.) Plaintiffs appealed

the denial of their Motion for Attorneys’ Fees as well as the Court’s determination that the Interlocutory Judgment of Partition was a final order. (ECF No. 438.) The Ninth Circuit dismissed the appeal for lack of jurisdiction, finding that the Interlocutory Judgment of Partition was not a final judgment. (ECF No. 473.) The Court also held a jury trial on Plaintiffs’ related breach of contract claim in

April 2018. The jury rendered a verdict for Plaintiffs, and the Court entered judgment

on May 4, 2018, with costs taxed September 18, 2018. (ECF Nos. 335, 347, 387.)

Defendants paid Plaintiffs $134,673.60 in satisfaction of that judgment on or around

March 22, 2019, and Plaintiffs filed a Satisfaction of Judgment on April 4, 2019. (ECF

413.) Defendants Michael DeMartini and Renate DeMartini appealed, and the Ninth

Circuit vacated the Court’s judgment on Plaintiffs’ breach of contract claim, reasoning

that the Court had improperly granted summary judgment on Defendants’

counterclaims for breach of partnership and defamation and excluded partnership

and mitigation evidence during the trial which likely tainted the jury’s verdict. (ECF

No. 455.) The Ninth Circuit remanded for a new trial of Plaintiffs’ breach of contract

claim and Defendants’ counterclaims. (Id.)

On December 3, 2021, Defendants moved to set aside the Court’s Interlocutory

Judgment on Partition, arguing that the Ninth Circuit’s mandate that the Court retry

Plaintiffs’ breach of contract and Defendants’ counterclaims extended to Plaintiffs’

partition claim as well. (ECF No. 458.) On March 13, 2024, the Court denied

Defendants’ Motion to Set Aside, and subsequently denied reconsideration of that

denial on June 5, 2024, holding that nothing in the Ninth Circuit’s decision required

retrial of the partition claim as the reasoning in the Ninth Circuit’s order was limited to

the breach of contract and counterclaims. (ECF Nos. 483, 497.)

On October 2, 2024, Defendants filed a Motion to Dismiss Plaintiffs’ Claim for

Partition of Real Property. (ECF No. 515.) Plaintiffs, in response, opposed dismissal,

and also filed two Motions for Sanctions, arguing Defendants’ Motion to Dismiss was

brought in bad faith. (ECF No. 518; ECF No. 530.) These Motions were taken under

submission by the Court pursuant to Local Rule 230(g). (ECF No. 536.) On December 3, 2024, Plaintiffs filed a Motion for Allocation of Statutory Partition Costs, seeking allocation of attorneys’ fees and law firm costs incurred by Plaintiffs from March 2019 through September 2024. (ECF No. 538.) On April 2, 2025, the Court granted Plaintiffs’ Motion, allocating $225,652.05 in partition fees and

costs among the Parties according to their respective 50% interests in the Property.

(ECF No. 548.) Defendants appealed that Order on April 30, 2025. (ECF No. 553.)

On May 13, 2025, Plaintiffs filed an Application for Writ of Execution in the amount of

$113,838.94, seeking Defendants half of the partition costs plus interest. (ECF No.

558.) On May 14, 2025, the Clerk of Court issued the Writ of Execution. (ECF No.

559.) The next day, Defendants filed an Ex Parte Emergency Motion to Quash Writ of

Execution, for Stay of Enforcement, and for Relief from Judgment, seeking to quash or

stay enforcement of the Writ, arguing they had effectively already paid Plaintiffs the

$113,838.94 due and that their pending appeal warranted a stay. (ECF No. 560.)

On April 18, 2025, Plaintiffs also filed a Motion for Reconsideration of the

Court’s prior denial of their May 10, 2019, Motion for Attorneys’ Fees, arguing that

Ninth Circuit’s determination that the Interlocutory Judgment of Partition was not a

final order rendered the Court’s denial on that basis improper. (ECF No. 552.) The

Court held a hearing on June 12, 2025, with Christian Kemos appearing for Plaintiffs,

and Defendants representing themselves, during which the Court heard argument on

Plaintiffs’ Motion for Reconsideration. The Motion was taken under submission.

I. Defendants’ Motion to Dismiss and Plaintiffs’ Motions for Sanctions Will be

Denied

Defendants move to dismiss Plaintiffs’ partition claim, arguing Plaintiffs were

required to assert this claim as a counterclaim in a previously filed state court action

involving the same Parties, but failed to do so, barring the Plaintiffs from asserting that

claim here. (ECF No. 515.) Plaintiffs argue dismissal is improper because Defendants

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