R & J Sheet Metal v. W.E. O'Neil Construction etc.

CourtCalifornia Court of Appeal
DecidedJune 4, 2025
DocketB336394
StatusPublished

This text of R & J Sheet Metal v. W.E. O'Neil Construction etc. (R & J Sheet Metal v. W.E. O'Neil Construction etc.) 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
R & J Sheet Metal v. W.E. O'Neil Construction etc., (Cal. Ct. App. 2025).

Opinion

Filed 6/4/25 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

R & J SHEET METAL, INC., B336394

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC596858) v.

W.E. O’NEIL CONSTRUCTION CO. OF CALIFORNIA et al.,

Defendants and Respondents.

APPEAL from an order of the Superior Court of Los Angeles County, Daniel M. Crowley, Judge. Affirmed. Law Offices of Alex P. Aghajanian, Alex P. Aghajanian, Gary P. Simonian; Benedon & Serlin, Melinda W. Ebelhar and Kelly R. Horwitz for Plaintiff and Appellant. Murchison & Cumming, Russell S. Wollman, Todd A. Chamberlain and Matthew E. Voss for Defendants and Respondents. ____________________________ R & J Sheet Metal, Inc. (R&J) appeals from an order directing it to pay contribution under Code of Civil Procedure1 sections 882 and 883 to W.E. O’Neil Construction Co. of California (WEO), Continental Casualty Company (Continental), and Western Surety Company (Western) (collectively, the WEO defendants). R&J and the WEO defendants are co-debtors on a joint and several judgment in favor of Joseph Karscig, Inc., doing business as Architectural Systems, Inc. (ASI). R&J appealed the judgment. The WEO defendants chose not to appeal, instead satisfying the judgment in full and filing a motion for contribution from R&J. Because R&J’s pending appeal stayed further proceedings in the case, the trial court took the motion off calendar. We affirmed the judgment, and the trial court lifted the stay. Seven months later, the WEO defendants filed a second contribution motion, this time including postjudgment interest. The trial court granted the motion and, deeming the WEO defendants a single entity for purposes of liability, ordered R&J to pay one-half the judgment. On appeal, R&J argues the contribution motion did not meet the 30-day deadline under section 883. R&J argues the first contribution motion was invalid because it was filed during the pendency of R&J’s appeal, at which time the trial court had no jurisdiction to accept the filing and place the motion off calendar, and the WEO defendants did not refile it within 30 days of the remittitur. Assuming the first motion was valid, R&J argues the second motion was an entirely new motion and therefore cannot

1Unspecified statutory citations are to the Code of Civil Procedure.

2 rely on that first motion to establish timeliness. R&J further argues to the extent the second motion could be construed as a revival of the first motion, the WEO defendants nonetheless had to file it within 30 days of remittitur, but failed to do so. R&J also argues the second motion should be barred by laches. R&J challenges the substance of the contribution order as well. It contends the trial court erred by allocating liability pro rata, rather than taking evidence as to the judgment debtors’ proportionate liability. R&J further contends the trial court should not have included Western in a single entity along with WEO and Continental, and therefore to the extent a pro rata allocation was proper, R&J should owe only a one-third share, not one-half. We reject these arguments. R&J’s appeal may have deprived the trial court of jurisdiction to rule on the contribution motion while the appeal was pending, but it did not prevent filing of the motion and the trial court’s taking it off calendar, neither of which actions threatened the status quo or risked affecting the appeal. The only material difference between the first and second contribution motions was the addition of postjudgment interest, which automatically accrued by statute. The trial court therefore did not err in treating the second motion as simply an updating of the original motion to include that accrued interest. Nothing in section 883 suggests a contribution motion taken off calendar pending appeal must be restored to calendar within any particular time. R&J’s laches argument is forfeited for failure to raise it below. As for R&J’s substantive arguments, case law holds that pro rata contribution is proper in the absence of a judgment or underlying instrument otherwise allocating liability. A party

3 that satisfies a judgment, moreover, is entitled to contribution free of any offsets for unadjudicated matters among the judgment debtors—those matters may be resolved in a separate proceeding, such as the pending trial on R&J’s complaint against WEO and others and WEO’s cross-complaint against R&J. The trial court’s contribution order is consistent with this case law. R&J’s argument regarding Western’s inclusion in a single entity with WEO and Continental is forfeited for failure to raise it below. Accordingly, we affirm.

BACKGROUND

1. Pleadings In 2013, the City of Long Beach (the City) selected WEO as the general contractor for a construction project at the Port of Long Beach. WEO selected R&J as the subcontractor for furnishing and installing sheet metal. R&J in turn purchased sheet metal and other materials from ASI. In 2014, some of the sheet metal panels purchased by R&J fell into the harbor. There is an ongoing dispute as to whether WEO, R&J, or the City is at fault for the panels falling into the harbor. R&J ordered replacement panels, which ASI provided. A dispute arose as to who should pay for the replacement panels. Ultimately, WEO issued a check for the replacement panels made payable jointly to ASI and R&J. R&J refused to endorse the check, and therefore ASI was never paid for the replacement panels.2

2 R&J’s vice president explained in a declaration that had R&J endorsed the check, “[T]the amount of the joint check would be characterized as payment against R&J’s contract price—

4 On October 5, 2015, R&J filed a complaint against WEO, the City, ASI, and Doe defendants including an unnamed bonding company. The first, second, fourth, and fifth causes of action were against WEO for breach of contract and common law claims arising from WEO’s alleged failure to pay R&J for labor and materials. R&J alleged, inter alia, WEO had represented it would pay to replace the panels lost in the harbor, but had not done so. The sixth cause of action claimed liability as to the Doe bonding company that provided a bond to WEO. The third cause of action alleged ASI had breached its contract with R&J by not providing all requested materials and required warranties. The seventh and eighth causes of action sought funds from the City pursuant to a stop notice, as well as a determination that R&J’s liens were superior to those of the other defendants. On December 22, 2015, ASI filed a cross-complaint seeking payment for the materials ASI provided for the construction project, naming as defendants R&J, WEO, the City Continental, and an unnamed bonding company. On May 6, 2016, ASI amended the cross-complaint to substitute Western for the unnamed bonding company. On May 16, 2016, the court dismissed the City from the cross-complaint at ASI’s request.3

meaning R&J would have been responsible for the loss and cost of replacing the panels that fell into the harbor.” 3 On appeal, R&J contends ASI dismissed the City from the cross-complaint because Western, by issuing a bond, had effectively stepped into the City’s shoes. As we conclude in part E of our Discussion, post, R&J has forfeited its arguments concerning Western’s relationship with the City for failure to raise them below. ASI’s reasons for dismissing the City from the

5 On April 20, 2017, ASI filed an amended cross-complaint. The amended cross-complaint named as defendants R&J and WEO, as well as Continental and Western as sureties that issued bonds for the construction project. The first through third causes of action alleged breach of contract and common law claims against R&J for failure to pay for materials.

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