Walker v. Appellate Div. of the Superior Court of L. A. Cnty.

222 Cal. Rptr. 3d 524, 14 Cal. App. 5th 651, 2017 WL 3599762, 2017 Cal. App. LEXIS 720
CourtCalifornia Court of Appeal, 5th District
DecidedAugust 22, 2017
DocketNo. B280100
StatusPublished
Cited by10 cases

This text of 222 Cal. Rptr. 3d 524 (Walker v. Appellate Div. of the Superior Court of L. A. Cnty.) 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
Walker v. Appellate Div. of the Superior Court of L. A. Cnty., 222 Cal. Rptr. 3d 524, 14 Cal. App. 5th 651, 2017 WL 3599762, 2017 Cal. App. LEXIS 720 (Cal. Ct. App. 2017).

Opinions

KRIEGLER, Acting P.J.

*653Petitioner Michael Kerr Walker entered a plea of no contest to a misdemeanor count of contracting without a license. ( Bus. & Prof. Code, § 7028, subd. (a).)1 As a condition of probation, the trial court ordered Walker to pay restitution for the actual economic loss suffered by the victim, but denied the People's request to require Walker to make full restitution of all payments he received for his construction services and attorney fees incurred by the victim. On appeal by the People, the Appellate Division of the Superior Court of Los Angeles County reversed in a published opinion, holding that the victim was entitled to restitution for the full amount she paid to Walker, plus interest, as well as her attorney fees. In his petition for writ of mandate, Walker contends the Appellate Division erred in requiring criminal restitution in a manner intended to apply to civil actions, and by ordering restitution of attorney fees in an amount not proven by substantial evidence. We conclude that the civil disgorgement statute relied on by the Appellate Division does not control the *527amount of restitution in a criminal action. We further conclude that the Appellate Division did not err in ordering restitution of Curto's attorney fees. We therefore grant the mandate petition in part and deny in part. *654FACTUAL AND PROCEDURAL HISTORY

In August 2013, Sharon Curto entered into a written construction contract with Walker, an unlicensed contractor, to paint her home and to install 10 new windows. The original contract price was for $49,860. As the work progressed, additional work was added to the project and additional invoices were issued by Walker. On November 30, 2013, Walker sent Curto a demand letter stating she owed him $9,851. At that point, Curto had paid Walker a total of $61,428. Curto subsequently paid Walker $2,000 against the $9,851 balance. Walker initiated a lawsuit against Curto for nonpayment of the full amount due. Curto hired an attorney to defend her in the lawsuit.2 Curto filed a complaint against Walker with the California Department of Consumer Affairs Contractors State License Board (Board). During the investigation, the Board discovered Walker was not a licensed contractor and referred the matter to the Santa Monica City Attorney for criminal prosecution.

On November 4, 2015, Walker entered his plea of no contest to a violation of section 7028, subdivision (a). The court suspended imposition of sentence, and placed Walker on summary probation for two years. The court set a hearing to determine the amount of restitution Walker would be ordered to pay Curto as a condition of his probation.

The trial court conducted an extensive restitution hearing over the course of four days, which included briefing by both parties. The People's brief requested the court order Walker to pay Curto the entire amount she had paid him for his work, plus interest, and attorney fees incurred in the civil action. Later, the People increased the restitution request to include the cost for Curto to install one and a half windows that were not installed by Walker, and to repair and repaint her house.

The trial court denied the People's request for a full refund of Curto's payments to Walker. The court further denied Curto attorney fees incurred in the civil action. However, the court allowed the People to establish the actual economic loss suffered by Curto. Curto testified that Walker's work was substandard because the paint was fading, chipping, bubbling, and peeling. In December 2015, Curto obtained an estimate of $15,800 to repair and repaint her house. Curto further testified that Walker did not complete the window installation, as he only replaced eight and a half out of the ten windows. Curto obtained an estimate from the Board suggesting that it will cost at least $625 to complete the window installation. Sylvester Egan, a licensed contractor and expert witness for the defense, testified that constant maintenance is required on all paint jobs due to a house's natural weathering.

*655The trial court ordered Walker to pay restitution in the amount of $1,299. This figure consisted of $1,250 for the installation of the one and a half windows, covering the cost of labor and materials. The court accepted as reasonable Curto's $15,800 repair and repainting estimate, but found a substantial portion was necessitated by normal weathering rather than Walker's substandard performance. Therefore, the court discounted this amount by one-half ($7,900). The court then subtracted *528$9,150 ($7,900 for the paint repair plus $1,250 for the windows) from the amount that was unpaid to Walker ($9,150 minus $7,851), which left a balance of $1,299 in economic loss.

The People filed a Notice of Appeal from the trial court's restitution order. On November 16, 2016, the Appellate Division reversed the restitution order in a published decision. ( People v. Walker (2016) 6 Cal.App.5th Supp. 38, 211 Cal.Rptr.3d 829.) The Appellate Division held the trial court abused its discretion in not ordering full restitution for all compensation Curto paid to Walker, plus interest, as well as not ordering attorney fees incurred in the civil action. ( Id. at pp. 43-46, 211 Cal.Rptr.3d 829.) In reaching its decision, the Appellate Division relied on section 7031, which provides that an unlicensed contractor cannot not sue for payment of his unlicensed work, and the homeowner has the right to bring a civil action to recover all sums paid to him. ( Id. at p. 43, 211 Cal.Rptr.3d 829.) The Appellate Division recognized that section 7031 is not directly applicable in a criminal case, however, "the impact of the statute means, in practical terms, that the homeowner parted with her money in a situation where she did not have to do so. Thus, even if the work performed by [Walker] bestowed a benefit to the homeowner, she nonetheless incurred an economic loss for purposes of her constitutional and statutory right to restitution (see Cal. Const. art. I, § 28, subd. (a), Pen. Code, § 1202.4, subd. (a)(1)) in the amount of all monies paid to him for his unlicensed work. In addition, [Curto] was entitled to restitution of attorney fees incurred in defending against [Walker's] civil action for unpaid compensation and in prosecuting her counterclaim to recover the money she paid [Walker] under the contract. (See Pen. Code, § 1202.4, subd. (f)(3)(H).)" ( Id. at p. 40, 6 Cal.App.5th Supp. 38.) On December 5, 2016, Walker's petition for rehearing was denied.

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Bluebook (online)
222 Cal. Rptr. 3d 524, 14 Cal. App. 5th 651, 2017 WL 3599762, 2017 Cal. App. LEXIS 720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walker-v-appellate-div-of-the-superior-court-of-l-a-cnty-calctapp5d-2017.