Whitehill v. Valente CA1/1

CourtCalifornia Court of Appeal
DecidedJune 18, 2014
DocketA137613
StatusUnpublished

This text of Whitehill v. Valente CA1/1 (Whitehill v. Valente CA1/1) 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
Whitehill v. Valente CA1/1, (Cal. Ct. App. 2014).

Opinion

Filed 4/25/14 Whitehill v. Valente CA1/1 Opinion received for posting 6/18/14 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIRST APPELLATE DISTRICT

DIVISION ONE

MICHAEL WHITEHILL, Defendant and Cross-Appellant, A137613 v. SUZANNE VALENTE, (San Mateo County Super. Ct. No. CIV508978) Plaintiff and Appellant.

In this appeal, Suzanne Valente challenges the trial court’s sustaining of Michael Whitehill’s demurrer to her complaint without leave to amend. Valente argues that while the one-year statute of limitations set forth in Code of Civil Procedure section 340.61 is applicable to attorney malpractice actions, it does not apply to her claims because they are not based on legal malpractice. Whitehill cross-appeals from the court’s ruling denying his section 128.7 motion for sanctions. He claims the court erroneously ruled he had not satisfied that statute’s 21-day safe harbor provision. We affirm the ruling on the demurrer and reverse the ruling on the sanctions motion.

1 All further statutory references are to the Code of Civil Procedure except as otherwise specified. FACTUAL BACKGROUND AND PROCEDURAL HISTORY I. The Parties Whitehill is an attorney. Valente is a dentist who started her own practice in 1984. She eventually became disabled and filed a claim with her insurer, which was denied in 2001. She then hired Whitehill to represent her in the disability insurance matter. II. Allegations in the Complaint On October 12, 2011, Valente filed her complaint against Whitehill. We take the following facts from the allegations stated therein and from judicially noticed material. In January 2003, the parties entered into a written contingency fee agreement. Whitehill agreed to represent Valente in the case against her disability insurer, UnumProvident Corporation (UnumProvident). Whitehill represented her continuously from January 13, 2003 until February 11, 2008. The contingency fee agreement provided that if UnumProvident appealed, or if Whitehill determined an appeal was proper and Valente agreed, he would handle the appeal without additional charge. In November 2004, the case proceeded to trial and the jury found in favor of Valente on the theories of breach of contract and breach of the covenant of good faith. It awarded her damages in the sum of $1,143,793.33. (Valente v. UnumProvident Corp. (2006) 2006 WL 2512507.) The jury, however, found in favor of UnumProvident on the issue of punitive damages. UnumProvident paid the judgment and did not appeal the verdict. Whitehill did not believe an appeal was appropriate. Valente did desire to appeal, and consulted with other attorneys on the matter. They advised her that her trial counsel would be best able to proceed with an appeal. Whitehill told Valente he would handle an appeal for the sum of $65,000 to cover his services and costs, which would be reimbursed to her if she were to win at a retrial on the punitive damages issue. She agreed to these terms and a supplemental agreement was drafted confirming the parties’ understanding. The appeal was filed, and Division Five of this court reversed the judgment on the punitive damages issue. (Valente v. UnumProvident Corp., supra, 2006 WL 2512507.) The case was remanded to the trial court.

2 Whitehill began preparing for the new trial and a trial date was set for October 15, 2007. Before trial, UnumProvident made a settlement offer. Whitehill advised Valente to accept the offer, but she rejected it. Whitehill then informed her that she would have to advance him $60,000 in costs for the new trial. She paid the sum in October 2007. The trial was continued to February 11, 2008. In January 2008, Whitehill demanded another $30,000 to continue with the retrial. Valente advised Whitehill that she wished to discontinue her relationship with him and substitute new counsel. She hired a new attorney. Valente’s new counsel continued the trial to August 2008. Whitehill was uncooperative with the new attorney and refused to fee share. Because of his unwillingness to fee share, the new attorney was unable to settle the case. Though Whitehill had already billed her for expert witness fees, the expert refused to testify in the retrial. Whitehill failed to inform Valente that he had drafted a contract obligating the expert to participate in the case only if Whitehill was still the attorney for Valente. She was unable to retain a new expert in time for trial. The new trial ended in the same result as the first case, with the jury ruling in favor of UnumProvident with respect to Valente’s punitive damages claim. III. Causes of Action Valente’s complaint contains two causes of action for breach of contract, along with claims for unfair business practices, fraud, and breach of fiduciary obligations. IV. The Demurrer and Motion for Sanctions On December 23, 2011, Whitehill’s attorney sent a letter to Valente’s counsel explaining that the current action was time-barred. A telephone conversation concerning this issue and an additional letter from Whitehill’s attorney followed. On February 29, 2012, Whitehill filed a demurrer to the complaint alleging the action was time-barred under the applicable statutes of limitations (§§ 340.6, 338, subd. (d)). That same day, Whitehill’s attorney sent a letter to Valente’s counsel informing him that if he did not withdraw the complaint within 21 days, Whitehill would file a motion

3 for sanctions pursuant to section 128.7, subdivision (c)(1). The letter enclosed a copy of the proposed motion for sanctions. The motion states the hearing date as May 2, 2012. According to an e-mail message sent to Valente’s counsel by Whitehill’s counsel on March 23, 2012, the May hearing date had been available per the superior court’s Web site. Subsequently, the court clerk informed Whitehill’s counsel that the Web site was incorrect, and the first available date for the hearing was actually July 3, 2012. The e-mail goes on to state that the sanctions motion would shortly be filed. Whitehill’s attorney indicated his belief that the safe harbor requirement contained in section 128.7 would be unaffected, as the hearing date was set more than three months into the future. On March 23, 2012, Valente filed a request for dismissal as to the fraud cause of action only. On April 2, 2012, Whitehill filed and served his notice of motion for sanctions pursuant to section 128.7. The date of hearing stated on the filed motion is July 3, 2012. On June 20, 2012, Valente filed her opposition to the motion for sanctions. In support of her contention that her complaint was not frivolous, she relied heavily on an unpublished Court of Appeal decision from the Second District as “a sound basis for [Valente] to believe that her claims had merit.” She also asserted Whitehill’s motion was procedurally flawed because it contained an incorrect hearing date when it was initially served on her. After the hearing date was changed, Whitehill did not wait 21 days before filing the corrected motion with the court, arguably failing to comply with section 128.7’s notice requirements. V. The Trial Court’s Rulings On July 2, 2012, the trial court issued its tentative ruling sustaining the demurrer without leave to amend as to the entire complaint. The tentative ruling also indicates the court’s intent to grant Whitehill’s motion for sanctions in the sum of $8,012 on the ground that “it was not reasonable for [Valente] to rely on a single non-published decision in filing a verified complaint which demonstrates, on its face, that [Valente’s] claims are time-barred.”

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Whitehill v. Valente CA1/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitehill-v-valente-ca11-calctapp-2014.