Tilley v. Moreno CA5

CourtCalifornia Court of Appeal
DecidedMay 24, 2021
DocketF080040
StatusUnpublished

This text of Tilley v. Moreno CA5 (Tilley v. Moreno CA5) 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
Tilley v. Moreno CA5, (Cal. Ct. App. 2021).

Opinion

Filed 5/24/21 Tilley v. Moreno CA5

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIFTH APPELLATE DISTRICT

BONNIE TILLEY, as Trustee, etc., F080040 Plaintiff and Appellant, (Super. Ct. No. BPB-18-003127) v.

OMAR MORENO, Individually and as Trustee, OPINION etc., et al.,

Defendants and Appellants.

APPEAL from a judgment of the Superior Court of Kern County. Andrew B. Kendall, Commissioner. Botti & Morison Estate Planning Attorneys, Richard A. Marcus and Paul A. Morison for Plaintiff and Appellant. Darling & Wilson and Joshua G. Wilson for Defendants and Appellants. -ooOoo- INTRODUCTION Bonnie Tilley, the successor trustee of the Miller-Pitcher Family Trust, filed a petition pursuant to Probate Code section 850, subdivision (a)(3)(B) for an order transferring to the trust estate certain property interests held by Omar and Kristina Moreno. The Morenos electronically submitted a demurrer for filing in the probate court. That court subsequently struck the demurrer as untimely, deemed Tilley’s petition unopposed, and entered an order granting her petition. The Morenos filed a motion to stay enforcement of the probate court’s order, which was granted. They then moved for: (1) a new trial, and (2) for reconsideration or, in the alternative, for relief under Code of Civil Procedure section 473, subdivision (b).1 They asserted their demurrer had been submitted ahead of a court-imposed deadline and the court’s striking thereof was the result of the court’s “mistake, inadvertence, or neglect” or, alternatively, their attorney’s “mistake, inadvertence, surprise, or excusable neglect, or even inexcus[]able neglect.” Following a hearing, the probate court concluded discretionary relief was warranted on the grounds of “surprise of counsel.” On August 30, 2019, the court signed an order granting the Morenos’ motion for relief under section 473, subdivision (b), and vacating its prior order approving Tilley’s petition. Tilley appealed. On appeal, Tilley contends the probate court erroneously granted the Morenos’ motion for relief under section 473, subdivision (b) because the statute was inapplicable, and because the Morenos did not “articulate any facts demonstrating the surprise of counsel causing entry of the order” (underlining omitted) or otherwise cite “a proper basis for the grant of a discretionary [section] 473[, subdivision ](b) motion.”

1 Unless otherwise indicated, subsequent statutory citations refer to the Code of Civil Procedure.

2. The Morenos filed a cross-appeal stating that, if this court reverses the probate court’s grant of relief under section 473, subdivision (b), the original order granting Tilley’s petition will be reinstated. In that event, they request this court reverse the original order granting Tilley’s petition. We affirm the probate court’s August 30, 2019 order. BACKGROUND INFORMATION Thomas E. Miller and Joyce R. Pitcher created the Miller-Pitcher Family Trust on August 1, 2003. Under the terms of the trust, upon the death of the first settlor, the trust estate would divide into three subtrusts: a survivor’s trust, a bypass trust, and a qualified terminable interest property trust. The bypass trust and the qualified terminable interest property trust would be irrevocable and funded with the decedent’s assets, including his or her separate property. Pitcher died on November 17, 2004. At the time of her death, she had separate property worth approximately $5 million, including interests in the following real properties and entities: 414 Witmer, Los Angeles, California; 457 Witmer, Los Angeles, California; 461 Witmer, Los Angeles, California; 439 Bonnie Brae Apartments, L.P.; 427 Westlake Apartments, L.P.; and Spaulding Apartments, LLC. By court decree, these interests were distributed to Miller, the sole trustee. Via quitclaim deeds recorded on October 7, 2008, Miller conveyed to the Morenos an undivided 50 percent interest in 414 Witmer, Los Angeles, California; 457 Witmer, Los Angeles, California; and 461 Witmer, Los Angeles, California. Deeds of trust against these properties were recorded concurrently. In December 2011, Miller and the Morenos sold their interests in the properties. At some point, the Morenos acquired a 40 percent interest in 439 Bonnie Brae Apartments, L.P.; 427 Westlake Apartments, L.P.; and Spaulding Apartments, LLC. In April 2012, Miller and the Morenos acquired undivided 60 percent and 40 percent interests, respectively, in 427 Western, Glendale, California. In June 2012, Miller and the Morenos acquired undivided 60 percent and

3. 40 percent interests, respectively, in 2260-2262 ½ West Adams Boulevard, Los Angeles, California. Both properties were refinanced in 2015. Miller died on August 23, 2016, and Tilley became the successor trustee. In the petition filed on November 1, 2018, she alleged Miller failed to fund the bypass trust and qualified terminable interest property trust. Tilley asked for an order transferring to the trust estate the Morenos’ interests in 427 Western, Glendale, California; 2260-2262 ½ West Adams Boulevard, Los Angeles, California; 439 Bonnie Brae Apartments, L.P.; 427 Westlake Apartments, L.P.; and Spaulding Apartments, LLC; directing the Morenos to pay $1,700,000 “for losses suffered by [their and Miller’s] misdealings”; removing Omar Moreno as property manager of 427 Western, Glendale, California and 2260- 2262 ½ West Adams Boulevard, Los Angeles, California; and awarding damages “twice the value of the property recovered as well as reasonable attorney’s fees and costs” pursuant to Probate Code section 859. PROCEDURAL FACTS At an April 26, 2019 hearing, the probate court continued the cause to May 17, 2019, and instructed the Morenos to file their demurrer by May 10, 2019. The court warned them that it would waive objections pursuant to rule 7.801 of the California Rules of Court in the event of an untimely filing. At the May 17, 2019 hearing, Tilley’s attorney Paul Morison informed the court that the docket showed the Morenos’ demurrer was filed on May 15, 2019. The court examined the docket, which indicated the demurrer was rejected on May 14, 2019, and accepted the next day. Anton Labrentz, the Morenos’ attorney at this hearing, maintained the demurrer had been submitted ahead of the deadline through the court’s Odyssey online e-filing system and supporting evidence was available at his office. The court struck the demurrer as untimely.

4. An order granting Tilley’s unopposed petition was entered on June 3 and 5, 2019 (the June 2019 order). Prior to entry, the Morenos filed a motion for new trial and to stay enforcement of the order. At the June 13, 2019 hearing, the probate court stated:

“I asked for additional information about what may or may not have been filed on [May 9, 2019]. I understand the rejection slip, which actually shows on Odyssey, the rejection slip, which shows that whatever was filed was rejected May 14th. However, I was able to locate what was filed on May 9th, and I also have the data about what fees may or may not have been paid.” Documentation was distributed to the parties. The court continued:

“That’s the information that I reviewed. Maybe you would want to take a minute to take a look at it before we proceed any further. But what I did find is that there was a filing on May 9th.

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