Vena v. Moore, Schulman & Moore, APC

CourtDistrict Court, S.D. California
DecidedAugust 31, 2022
Docket3:22-cv-00437
StatusUnknown

This text of Vena v. Moore, Schulman & Moore, APC (Vena v. Moore, Schulman & Moore, APC) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vena v. Moore, Schulman & Moore, APC, (S.D. Cal. 2022).

Opinion

1 2 3 4 5 6 7 8 9 10 UNITED STATES DISTRICT COURT 11 SOUTHERN DISTRICT OF CALIFORNIA 12 13 NICHOLAS A VENA, Case No.: 3:22-cv-0437-W-BLM

14 Plaintiff, ORDER DENYING DEFENDANTS’ 15 v. MOTION TO DISMISS AND STRIKE [DOC.7] 16 MOORE, SCHULMAN & MOORE, APC, et al. 17 Defendants. 18 19 20 Defendants Moore, Schulman & Moore, APC and Julie Westerman move to 21 dismiss the federal cause of action under Federal Rule of Civil Procedure 12(b)(6) and 22 move to strike the state-based causes of action under California’s Anti-SLAPP Statute, 23 Code Civ. Pro., § 425.16. Plaintiff Nicholas A. Vena opposes. 24 The Court decides the matters on the papers submitted and without oral argument. 25 Civ. L.R. 7.1(d.1). For the reasons that follow, the Court DENIES Defendants’ motion 26 [Doc. 7]. 27 28 1 I. BACKGROUND 2 This lawsuit arises out of an underlying state court marital-dissolution proceeding 3 between Plaintiff Nicholas A. Vena and Christine Vena. In this case, Nicholas is suing 4 Christine’s former attorneys for, among other things, allegedly violating his due-process 5 right to a fair and unbiased tribunal. 6 7 A. The Underlying Marital Dissolution Proceeding. 8 On November 18, 2019, Christine filed a petition for legal separation against 9 Nicholas in the San Diego Superior Court, North County Family Division. (Compl. 10 [Doc. 1] ¶ 10.) Christine is represented by Defendant Julie Westerman, a partner of 11 Defendant Moore, Schulman & Moore, APC (“MSM”). (Id.) “In addition to legal 12 separation, the case involved substantial contested issues, including child custody and 13 visitation; child support; spousal support; property characterization; valuation, and 14 division; and attorney’s fees and costs.” (Id.) 15 On November 5, 2020, the petition was amended, converting it to a marital- 16 dissolution action. (Compl. ¶ 11.) On July 15, 2021, the case was bifurcated and a 17 status-only judgment filed. (Id.) Nicholas’s and Christine’s marriage has now been 18 dissolved, but other substantial issues remain pending. (Id. ¶¶ 11, 17.) 19 On March 13, 2020, Nicholas invoked his right to an evidentiary hearing on child 20 custody. (Compl. ¶ 17.) Judge William Wood entered temporary orders and set a trial 21 for October. (Id.) Unfortunately, because of the COVID-19 pandemic, the trial date was 22 vacated, which resulted in Nicholas being deprived of time with his children. (Id. ¶¶ 17, 23 18.) To expedite the action, Nicholas agreed to appoint a privately compensated 24 temporary judge to preside over the case. (Id. ¶ 18.) 25 26 B. The Parties Retain Commissioner Jeannie Lowe. 27 Defendant Westerman suggested two candidates, one of which was retired family 28 court commissioner, the Hon. Jeannie Lowe. (Compl. ¶ 18.) Nicholas agreed and 1 entered an agreement with the alternate dispute resolution organization JAMS to hire 2 Commissioner Lowe to adjudicate their marriage dissolution, preside over the child 3 custody trial and financial trial, and resolve certain discovery motions and hearings. (Id. 4 ¶ 19.) Commissioner Lowe’s fees were $4,000 per day, $2,200 per half day, and 5 additional time was $500 per hour, plus other fees and expenses. (Id. ¶ 19.) Each party 6 was responsible for half the fees. (Id. ¶ 20.) Nicholas’s portion amounted to over 7 $63,000. (Id.) 8 On September 17, 2020, Commissioner Lowe signed her oath of office, which 9 included a promise to comply with Canon 6 of the Code of Judicial Ethics. (Compl. ¶ 10 21.) The next day, Commissioner Lowe signed a disclosure checklist, disclosing her past 11 service as a “neutral” for MSM (Christine’s law firm), but no new or impending 12 engagements with the firm. (Id. ¶ 22.) The court signed her appointment on October 6, 13 2020. (Id. ¶ 21.) 14 15 C. Defendants Retain Commissioner Lowe in Eight New or Expanded 16 Matters Without Disclosing to Nicholas. 17 Unbeknownst to Nicholas and his counsel, on September 22, just days after 18 Commissioner Lowe signed her disclosure checklist, MSM began sending a large volume 19 of lucrative business to Commissioner Lowe via JAMS. (Compl. ¶ 26.) The first matter 20 was an expansion of a previously disclosed case, which had been closed but was 21 reopened. (Id.) Over the course of several months, MSM retained Commissioner Lowe 22 in multiple new matters, most of which were ongoing during Nicholas’s and Christine’s 23 child-custody trial. (Id. ¶ 27.) In total, MSM offered Commissioner Lowe employment 24 in eight new or expanded matters. (Id.) 25 Commissioner Lowe never disclosed any of the expanded or new matters. (Compl. 26 ¶ 29.) Nicholas alleges “MSM and Westerman intended that [he] and his counsel remain 27 unaware of the new business and the money going to Commissioner Lowe” because if the 28 business dealings were disclosed, “MSM and Westerman knew that Commissioner Lowe 1 would likely be deemed disqualified as of the date she began engaging in undisclosed 2 business dealings with them.” (Id. ¶ 31.) Further, Nicholas alleges that once their 3 dealings began to come to light, MSM and Westerman resisted requests to fully disclose 4 their dealings with Commissioner Lowe. (Id.) 5 As a result of MSM’s retention of Commissioner Lowe on the undisclosed matters, 6 Nicholas alleges that she was biased and openly favored Christine’s counsel. (Compl. ¶ 7 39.) According to the Complaint, Commissioner Lowe exhibited an unusual and 8 inappropriate degree of familiarity towards Christine’s attorneys, including Westerman, 9 while behaving coldly to Nicholas’s attorney. (Id.) And during the litigation, Westerman 10 relied on MSM’s favored status to make baseless arguments, misrepresent the record, and 11 violate procedural rules. (Id. ¶ 40.) Ultimately, Commissioner Lowe tentatively awarded 12 Christine more than half-time physical custody and final decision-making authority over 13 all the children, including an older child who lived full-time with Nicholas. (Id. ¶ 41.) 14 When Commissioner Lowe’s acceptance of the undisclosed business came to light, 15 Nicholas’s counsel moved to disqualify her. (Compl. ¶ 43.) Ultimately, Commissioner 16 Lowe recused herself and the case was reassigned to Superior Court Judge Victor Torres. 17 (Id. ¶ 47.) On February 17, 2022, Judge Torres issued an order voiding all of 18 Commissioner Lowe’s orders “for failure to disclose….” (Id.) Nicholas contends that by 19 then, he had incurred over $1 million in costs and legal fees for the voided legal 20 proceedings. (Id. ¶ 49.) 21 On April 1, 2022, Nicholas filed this lawsuit against MSM and Westerman. (See 22 Compl.) The Complaint asserts four causes of action for: (1) violation of federal civil 23 rights, under 42 U.S.C. § 1983; (2) negligence; (3) willful misconduct; and (4) intentional 24 interference with contractual relations. (Id.) On May 10, 2022, Defendants filed this 25 motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) and motion to strike 26 under California’s Anti-SLAPP Statute. Nicholas opposes the motion. 27 28 1 II. MOTION TO DISMISS 2 A. Standard 3 The Court must dismiss a cause of action for failure to state a claim upon which 4 relief can be granted. Fed. R. Civ. P. 12(b)(6). A motion to dismiss under Rule 12(b)(6) 5 tests the legal sufficiency of the complaint. See Parks Sch. of Bus., Inc. v. Symington, 51 6 F.3d 1480, 1484 (9th Cir. 1995). A complaint may be dismissed as a matter of law either 7 for lack of a cognizable legal theory or for insufficient facts under a cognizable theory. 8 Balisteri v.

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