Rush v. White Corp.

221 Cal. Rptr. 3d 240, 13 Cal. App. 5th 1086, 2017 WL 3205964, 2017 Cal. App. LEXIS 659
CourtCalifornia Court of Appeal, 5th District
DecidedJuly 28, 2017
DocketA145758
StatusPublished
Cited by11 cases

This text of 221 Cal. Rptr. 3d 240 (Rush v. White Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rush v. White Corp., 221 Cal. Rptr. 3d 240, 13 Cal. App. 5th 1086, 2017 WL 3205964, 2017 Cal. App. LEXIS 659 (Cal. Ct. App. 2017).

Opinion

Richman, J.

*1088Spanish Peaks is a 3000-acre luxury resort in Big Sky Country, Montana, a development begun in 2002 by Spanish Peaks Holdings II, LLC (Holdings). The featured residences at Spanish Peaks were to be "high end settlement cabins," to be constructed close to a massive lodge, which was to be the centerpiece of the development, containing restaurants, stores, recreation facilities, and other amenities. Beginning in 2004 the five plaintiffs here acquired 13 properties in Spanish Peaks, eight undeveloped lots and five with cabins on them, one of which cost over $3,000,000. By July 2011 all but two of the 13 properties had been lost, usually by foreclosure.

In July 2012 a complaint was filed by one plaintiff, joined in September by the four others, whose first amended complaint named seven defendants, not including the developer Holdings, which was bankrupt. The essence of the case was fraud and negligence in construction and in soil remediation, the fundamental claim being that Spanish Peaks was a "landslide complex." Interestingly, though four of the five plaintiffs had taken title to the properties via LLCs, the lawsuit was brought in their individual names.

Four of the defendants moved for summary judgment, on several separate, and independent, bases, including lack of standing, no duty, no causation, and various defenses based on the purchase documents. The number of parties, the complexity of the various transactions, the relationships-more accurately, lack of relationships-between the five plaintiffs and the many defendants, and the financial details of the individual plaintiff's situation necessarily led to a lengthy statement of undisputed material facts-338 facts to be precise, in 49 pages.

Plaintiffs' separate statement in response was 155 pages, a statement that did not comply with the Rules of Court, improperly citing to numerous undisputed material facts for specific arguments in the opposition, which undisputed material facts were then supported by multiple paragraphs of multiple declarations, at times by every paragraph of nearly every declaration on file.

*1089Defendants' reply brief called plaintiffs on this and, following a hearing, the trial court agreed and entered an order to address the issue. Plaintiffs' response was still not proper, as a result of which the court issued an order entitled "order mandating compliance with California Rule of Court 3.1350." Plaintiffs' supplemental separate statement still did not comply, and following another hearing the trial court granted the motion for summary judgment based on plaintiffs' noncompliance-as the summary judgment statute expressly provides.

Plaintiffs appeal, presenting six questions for decision, most of which address the claimed lack of merit in defendants' motion, issues the trial court did not reach. We conclude the trial court did not abuse its discretion in granting the motion on the basis it did, and we affirm.

The Proceedings Below

The Complaint

The lawsuit started with a complaint on July 19, 2012 filed by one plaintiff, Dennis *242Rush, against one defendant, White Corporation. Two months later came a first amended complaint (FAC) in which four others joined, so that there were now five plaintiffs: Rush, David Flaherty, J. Christopher Fleming, Frank McGuyer, and Michael DeFelice.

The FAC also named six more defendants in addition to the originally named White Corporation: James Dolan, Voyager Group, Spanish Peaks Realty LLC, Rivers to Peaks Realty, American Land Development LLC, and Treadwell & Rollo.1 And concerning the defendants, the FAC alleged this:

"9. Defendant James Dolan ('Dolan') is an individual residing, on information and belief, in Pittsburgh, Pennsylvania. Dolan is a principal and controlling owner of Defendant Voyager Group ('Voyager'), a Pennsylvania limited partnership. Dolan and Voyager at all times were principals and controlling owners of Defendants Spanish Peaks Realty LLC, Rivers to Peaks Realty, and American Land Development LLC (collectively known herein as 'Dolan Defendants'), at all times acting on behalf of those entities, and other related entities. Dolan Defendants also owned and controlled ... 'Holdings' ....

"10. All the defendants are principals, agents, employees, employers, partners, joint venturers and/or co-conspirators acting jointly and in concert and within the scope of their authority.

*1090"11. At all times Dolan acted as representative and agent of Defendant Voyager; and Defendants Voyager and Dolan acted as representatives and agents of Spanish Peaks Realty LLC, Rivers to Peaks Realty and American Land Development LLC, and also of Holdings, the Spanish Peaks Homeowners Association, The Club at Spanish Peaks ('Club'), and The Lodge at Spanish Peaks ('Lodge'). Club and Lodge are presently in Chapter 11 Bankruptcy proceedings.

The FAC was titled for "Unfair Business Practice; Negligence; Fraud and Deceit; and Breach of Fiduciary Duty." In fact, the FAC alleged three other causes of action, styled "Negligence-Property Damage," "Breach of Warranty," and "Strict Products Liability." The Dolan defendants were named in the first, second, third and fourth causes of action. The sixth and seventh causes of action were against only American Land Development and Treadwell and Rollo.

The FAC was lengthy, 184 paragraphs, describing in great detail plaintiffs' version of what occurred. Distilled to its essence, the FAC alleged that Dolan and the other Dolan defendants all worked on behalf of, and in conspiracy with, each other (as well as two bankrupt entities, including Holdings); that the Dolan defendants failed to disclose to plaintiffs the development was riven with active landslides and bordered by earthquake faults, as a result of which plaintiffs suffered property damage; that the Dolan defendants failed to disclose the financing risks that put in jeopardy the construction of the highly touted lodge, some of which risks were caused by the cost of soil remediation; and that the Dolan defendants had inadequately remediated the soil.

Following some service issues, in July 2013 a joint answer was filed on behalf of six defendants: Dolan, White Corporation, Voyager, Spanish Peaks Realty LLC, Rivers to Peaks Realty, and American Land Development LLC.

*243The Motion for Summary Judgment

On June 20, 2014, four of the defendants, Dolan, Voyager, Spanish Peaks Realty LLC, and American Land Development LLC filed a motion for summary judgment or, in the alternative, summary adjudication, set for hearing on September 5. It was accompanied by a 23-age memorandum of points and authorities, a separate statement of undisputed material facts, and five declarations, of Dolan, Benjamin Schnayerson, William Genge, Cory Berkram, and Douglas Hein, representatives of the various defendants. The declarations described the defendants, descriptions that included the following:

Spanish Peaks Realty was the exclusive real estate agent for the properties that had been sold by Holdings before it went bankrupt.

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Cite This Page — Counsel Stack

Bluebook (online)
221 Cal. Rptr. 3d 240, 13 Cal. App. 5th 1086, 2017 WL 3205964, 2017 Cal. App. LEXIS 659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rush-v-white-corp-calctapp5d-2017.