Reiter v. C.Martin Co. CA1/2

CourtCalifornia Court of Appeal
DecidedApril 7, 2015
DocketA141477
StatusUnpublished

This text of Reiter v. C.Martin Co. CA1/2 (Reiter v. C.Martin Co. 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
Reiter v. C.Martin Co. CA1/2, (Cal. Ct. App. 2015).

Opinion

Filed 4/7/15 Reiter v. C.Martin Co. CA1/2 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

JOSEPH REITER, Plaintiff and Appellant, A141477 v. C. MARTIN COMPANY, (Mendocino County Super. Ct. No. SCUK CVG 13-62126) Defendants and Respondents.

Plaintiff and appellant Joseph Reiter (Reiter) appeals from an order granting C. Martin Corporation relief from default. We affirm. BACKGROUND On May 3, 2013, represented by attorney Mark Clausen, Reiter filed a complaint in the Mendocino County Superior Court naming three defendants: “Gilbert Duran, individually and dba Duran Construction; Becky Duran; and C. Martin Corporation.” Under “General Allegations,” the complaint alleged in pertinent part as follows: “7. On or about February 7, 2013, plaintiff and DURAN entered into a written contract, a true copy of which is attached as exhibit 1. The core terms of the contract called for DURAN to install a 450 feet sewer line and 2 manholes on a 4 lot minor subdivision in Covelo, California. DURAN was to obtain the necessary permits and approvals for the required excavation of the property and installation of the sewer line and manholes. DURAN was to be paid a total of $49,500—$24,750 up front, with 2 additional payments of $12,375 upon completion of specified work due under the contract.

1 “8. DURAN knew the subdivision is located adjacent to Indian tribal land and that the sewer line called for by the contract requires entry on and excavation of Indian tribal land, such that both tribal and Mendocino County permits and approval are needed to complete the work called for by the contract. DURAN also knew that Indian officials are particularly sensitive to construction work on or near tribal land, . . . . “9. DURAN represented that they had the necessary skill, education, expertise and equipment to complete the work in a timely and competent manner in accordance with industry standards, and had already secured or would timely secure the necessary permits and approval from Indian officials and the County of Mendocino. DURAN also represented that they are employed by or bonded through defendant C. Martin Corporation, and C. Martin Corporation would compensate plaintiff in the event that DURAN failed to timely perform in accordance with the terms of the contract. . . . Gilbert Duran said, for example, that he was employed and bonded by a ‘multi-million dollar’ company in C. Martin Corporation. Gilbert Duran often boasted on his employment with C. Martin Corporation. “10. In reliance on such representations, plaintiff paid DURAN $25,000 (twenty five thousand dollars) up front—$250 more than was due under the terms of the contract. DURAN accepted the money and assured plaintiff that the work would be performed in a timely and competent manner. . . . “11. DURAN failed to secure the necessary permits and approval for the work. DURAN did not even apply for permits from, or otherwise seek approval of, Indian tribe officials or the County of Mendocino, and did not meet with Indian tribal officials or representatives of the County of Mendocino. DURAN commenced work nonetheless. Not surprisingly, Indian tribal officials and representatives of the County of Mendocino were extremely upset when they learned that DURAN had commenced work. Individually and collectively, the Indian tribal officials and County representatives voiced their displeasure and objections to DURAN and plaintiff, such that the work due under the contract had to be stopped and could not be completed.

2 “12. DURAN did not thereafter secure the necessary permits or approval for completion of the work, nor did he attempt to do so, and he did not otherwise resolve the problems with plaintiff, Indian officials and the County of Mendocino. The work was never completed by DURAN. Nonetheless, DURAN retained all of the $25,000 and has refused to return any portion thereof, despite multiple demands from plaintiff. DURAN left several other contract jobs incomplete when he skipped town to do subcontract work elsewhere for C. Martin Corporation. While DURAN takes in significant income from C. Martin Corporation, the many jobs he contracted to do stand incomplete and idle.” The complaint purported to allege three causes of action: (1) breach of contract, (2) fraud, and (3) unlawful practice of law without a license, the last claim based on alleged conduct of Becky Duran. As pertinent here, the breach of contract claimed alleged this: “16. According to representations by DURAN, C. Martin Corporation has bonded DURAN’s work and agreed to compensate plaintiff for any and all damages suffered by him as a result of DURAN’s failure to perform under the contract. Plaintiff therefore alleges that C. Martin Corporation is liable along with Gilbert Duran and Duran Construction for breach of contract. . . . [¶] . . . [¶] “18. Demand is hereby made for C. Martin Corporation to perform under its bond and in accordance with its agreement with DURAN, and to timely make payment to plaintiff in the initial sum of $25,000 to reimburse plaintiff for the payment advanced to DURAN for work due under the contract, and thereafter pay plaintiff an additional sum sufficient to compensate plaintiff for all damages incurred as a result of the breach of contract. DURAN represented that C. Martin Corporation would make good if DURAN failed to perform as agreed. C. Martin Corporation must now do so.” And the fraud claim alleged this: “According to representations by DURAN, C. Martin Corporation has bonded DURAN’s work and agreed to compensate plaintiff for any and all damages suffered by him as a result of DURAN’s failure to perform under the contract, including DURAN’s fraudulent conduct. Plaintiff is informed and believes and thereon alleges that C. Martin Corporation knew that DURAN had made false

3 representations to plaintiff as herein described. C. Martin Corporation owed a duty to plaintiff to set the record straight and reveal the true facts. C. Martin Corporation did nothing to disavow or refute DURAN’s representations and did not otherwise inform plaintiff of the true facts. Plaintiff therefore alleges that C. Martin Corporation is liable for fraud along with DURAN.” The prayer of the complaint asked for “compensatory damages according to proof.” As indicated, this appeal involves a default against C. Martin Corporation (C. Martin). Because it does, and because a default has such a drastic effect, we digress from the chronology to briefly comment on Reiter’s complaint—and how it fails to even state a claim against C. Martin. To begin with, although the complaint alleged that a copy of the contract was attached to the complaint, it was not. But beyond that, it appears that insofar as the “breach of contract” action is against C. Martin, it is based on a claimed performance bond, which also was not attached to the complaint. To the extent that any claim against C. Martin was based on a representation by Duran, agency cannot be shown by representations of the agent. And any fraud claim against C. Martin would fail because no representations by it are alleged. In sum, Reiter’s complaint did not adequately allege any claim against C. Martin. Attorney Clausen, perhaps with the assistance of his client Reiter,1 set about attempting to effect service of the complaint, details of which are the subject of much discussion in the parties’ briefs.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Trujillo v. Trujillo
162 P.2d 640 (California Court of Appeal, 1945)
Weitz v. Yankosky
409 P.2d 700 (California Supreme Court, 1966)
MacLeod v. Tribune Publishing Co.
343 P.2d 36 (California Supreme Court, 1959)
Au-Yang v. Barton
987 P.2d 697 (California Supreme Court, 1999)
Smith v. Los Angeles Bookbinders Union No. 63
284 P.2d 194 (California Court of Appeal, 1955)
In Re Christina P.
175 Cal. App. 3d 115 (California Court of Appeal, 1985)
Bellm v. Bellia
150 Cal. App. 3d 1036 (California Court of Appeal, 1984)
Gt, Inc. v. Superior Court
151 Cal. App. 3d 748 (California Court of Appeal, 1984)
Liberty Loan Corp. of North Park v. Petersen
24 Cal. App. 3d 915 (California Court of Appeal, 1972)
Brown v. Presley of Southern California
213 Cal. App. 3d 612 (California Court of Appeal, 1989)
Barak v. the Quisenberry Law Firm
37 Cal. Rptr. 3d 688 (California Court of Appeal, 2006)
Fasuyi v. Permatex, Inc.
167 Cal. App. 4th 681 (California Court of Appeal, 2008)
Arambula v. Union Carbide Corp.
26 Cal. Rptr. 3d 854 (California Court of Appeal, 2005)
Carlton v. Quint
91 Cal. Rptr. 2d 844 (California Court of Appeal, 2000)
Frazee v. Seely
115 Cal. Rptr. 2d 780 (California Court of Appeal, 2002)
Ramos v. Homeward Residential, Inc.
223 Cal. App. 4th 1434 (California Court of Appeal, 2014)
Landwehr v. Gillette
163 P. 1018 (California Supreme Court, 1917)
Fox v. Townsend
87 P. 82 (California Supreme Court, 1906)

Cite This Page — Counsel Stack

Bluebook (online)
Reiter v. C.Martin Co. CA1/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reiter-v-cmartin-co-ca12-calctapp-2015.