Vera v. Lucas Auto Center CA2/7

CourtCalifornia Court of Appeal
DecidedDecember 6, 2023
DocketB323619
StatusUnpublished

This text of Vera v. Lucas Auto Center CA2/7 (Vera v. Lucas Auto Center CA2/7) 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
Vera v. Lucas Auto Center CA2/7, (Cal. Ct. App. 2023).

Opinion

Filed 12/6/23 Vera v. Lucas Auto Center CA2/7 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

SECOND APPELLATE DISTRICT

DIVISION SEVEN

FABIOLA VERA, B323619

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. 21STCV06832) v.

LUCAS AUTO CENTER, INC.,

Defendant and Appellant.

APPEAL from an order of the Superior Court of Los Angeles County, Yolanda Orozco, Judge. Affirmed. Primary Law Group, Joshua Kroot and Ahmed Jinnah for Defendant and Appellant. Auto Fraud Legal Center, Christopher P. Barry and Michelle A. Cook for Plaintiff and Respondent.

________________________ INTRODUCTION

Fabiola Vera purchased a used car from Lucas Auto Center, Inc. (Lucas Auto). After multiple mechanical problems, a repair, and a dispute over warranty coverage, Lucas Auto repossessed the car to recoup additional costs it said Vera owed. Vera filed suit against Lucas Auto in February 2021, alleging fraud and breach of warranty claims, as well as violation of several consumer protection laws. Although its agent for service of process was served, Lucas Auto filed no responsive pleadings, the clerk entered a default, and the court entered a default judgment in favor of Vera in October 2021. In May 2022 Lucas Auto moved to set aside the default and default judgment under Code of Civil Procedure section 473.5.1 Lucas Auto argued it never received actual notice of Vera’s lawsuit due to invalid substitute service on its registered agent for service of process. The trial court denied Lucas Auto’s motion because it determined the motion was untimely and Lucas Auto did not demonstrate it lacked actual notice of the action. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

A. Vera’s Lawsuit Against Lucas Auto Vera purchased a used BMW 750i from Lucas Auto in August 2020 with a warranty of 30 days or 1,000 miles covering the engine and transmission. After the car developed problems with the transmission within 30 days of the purchase, Lucas Auto

1 Statutory references are to the Code of Civil Procedure.

2 repaired the car and charged Vera $2,000 for half the cost of the repairs, citing the terms of its warranty. Vera could not afford to pay, so Lucas Auto repossessed the car. Vera, in turn, decided to sue Lucas Auto. Vera mailed a notice and demand letter via certified mail with a copy of the complaint to Lucas Auto at its business address, and to its registered agent for service of process on February 19, 2021. Vera then filed suit against Lucas Auto on February 22, alleging fraud, negligent misrepresentation, and violations of the Consumer Legal Remedies Act, the Song-Beverly Consumer Warranty Act, the Rosenthal Fair Debt Collection Practices Act, and the Unfair Competition Law.

B. Service of the Summons and Complaint on Lucas Auto Vera’s summons for Lucas Auto was issued on February 22, 2021. The summons issued notice of the lawsuit to “Lucas Auto Center, Inc.”2 The part of the summons labeled “Notice to the Person Served” provided checkboxes to indicate the served person’s relationship to the defendant, including a checkbox to indicate the person was served on behalf of a corporation. On the summons Vera later filed with the court, this checkbox was not checked. On March 8 Vera served Lucas Auto. Through a registered process server, Vera delivered the summons and complaint to the office of Monica Paladines, Lucas Auto’s registered agent for service of process, at her business address. The process server left the summons and complaint with Angie Ortiz, an employee of Paladines. The proof of service indicated Paladines was served

2 Vera also sued Hudson Insurance Company, but it was later dismissed from the suit.

3 through substitute service on Ortiz, a “person at least 18 years of age apparently in charge at the office.” The process server also indicated he informed Ortiz of “the general nature of the papers.” Subsequently, another process server sent a copy of the summons and complaint by first-class mail to:

LUCAS AUTO CENTER, INC ATTENTION: MONICA PALADINES – PERSON AUTHORIZED TO ACCEPT 16130 VENTURA BLVD., STE 210 ENCINO, CA 91436

On April 5 Vera amended her complaint. On April 15 a process server served the first amended complaint at Paladines’s office. Again, the server delivered the amended complaint to Ortiz and indicated she was the person “apparently in charge.” The next day, as before, a copy of the first amended complaint was mailed to Paladines’s office.

C. Entry of Default and Default Judgment Against Lucas Auto Lucas Auto filed no response to Vera’s complaint or amended complaint. On June 22, 2021 Vera filed a request for entry of default, which the clerk granted that same day. Vera served this document by mail on Paladines at her business address. Vera applied for a default judgment against Lucas Auto on September 10 requesting damages and attorney fees totaling $30,805.32, and served her application on Paladines. The court entered the default judgment on October 13, 2021 and awarded Vera the full amount requested. On December 1, Vera’s counsel

4 contacted Lucas Auto to ask which banks counsel should use to enforce the judgment, and he was informed by a Lucas Auto manager where it had bank accounts, including those with the largest available balances. A writ of execution of the judgment followed on May 23, 2022.

D. Lucas Auto’s Motion To Set Aside the Default and Default Judgment Under Section 473.5 The same day, Lucas Auto moved to set aside the default and default judgment under section 473.5.3 Lucas Auto argued service was improperly made on Paladines’s employee Ortiz because Ortiz had no relationship to Lucas Auto, was not in charge of Paladines’s office, and was instructed to refuse service of process. Because of improper service, Lucas Auto contended it never received actual notice of the action against it. In support of its motion, Lucas Auto submitted one-page declarations from Paladines and from Everardo Arreygue, general manager of Lucas Auto. Neither explained when Lucas Auto became aware of Vera’s lawsuit, or why it waited seven

3 In relevant part, section 473.5 provides: “(a) When service of a summons has not resulted in actual notice to a party in time to defend the action and a default or default judgment has been entered against him or her in the action, he or she may serve and file a notice of motion to set aside the default or default judgment and for leave to defend the action. The notice of motion shall be served and filed within a reasonable time, but in no event exceeding the earlier of: (i) two years after entry of a default judgment against him or her; or (ii) 180 days after service on him or her of a written notice that the default or default judgment has been entered.”

5 months after entry of the default judgment before it filed the motion. Arreygue’s declaration instead attested that Lucas Auto had no relationship with Ortiz. Arreygue’s declaration did not state that Lucas Auto lacked actual notice of the lawsuit. Paladines’s declaration also did not state that she or Lucas Auto lacked actual notice of the lawsuit, and instead stated as follows:

1. I am the registered agent for service of process for defendant Lucas Auto Center, Inc. (“Lucas Auto”). . . . 2. I am informed that plaintiff Fabiola Vera (“Vera”) alleges that the Summons and Complaint in this action was served on me by serving Angie Ortiz (“Ortiz”) at my office. 3. That assertion is incorrect for multiple reasons. 4. First, Ms.

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Bluebook (online)
Vera v. Lucas Auto Center CA2/7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vera-v-lucas-auto-center-ca27-calctapp-2023.