Wymont Services Limited v. Handal & Associates CA4/3

CourtCalifornia Court of Appeal
DecidedAugust 31, 2021
DocketG059353
StatusUnpublished

This text of Wymont Services Limited v. Handal & Associates CA4/3 (Wymont Services Limited v. Handal & Associates CA4/3) 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
Wymont Services Limited v. Handal & Associates CA4/3, (Cal. Ct. App. 2021).

Opinion

Filed 8/31/21 Wymont Services Limited v. Handal & Associates CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FOURTH APPELLATE DISTRICT

DIVISION THREE

WYMONT SERVICES LIMITED et al.,

Plaintiffs and Appellants, G059353

v. (Super. Ct. No. 30-2017-00920613)

HANDAL & ASSOCIATES, INC., et al., OPINION

Defendants and Respondents.

Appeal from an order of the Superior Court of Orange County, Theodore R. Howard, Judge. Affirmed. Bremer Whyte Brown & O’Meara, Nicole Whyte and Benjamin J. Price; Newmeyer & Dillion, Gregory L. Dillion, J. Nathan Owens and Jason Moberly Caruso for Plaintiffs and Appellants. Murchson & Cumming, Anton N. Handal; Freeman Mathis & Gary, Frances M. O’Meara and Diana Leon for Defendants and Respondents.

* * * Based on events that occurred during an underlying matter, appellants Wymont Services Limited, et al. (the Wymont entities) sued respondents Handal & Associates, Inc., and attorney Anton Handal (collectively H&A), for legal malpractice. H&A cross-complained, seeking $5 million in attorney fees under contractual theories of relief. In due course, H&A amended their cross-complaint to include a cause of action for false promise. The Wymont entities demurred successfully, and H&A amended their complaint again, adding additional facts. The Wymont entities then filed a special motion to strike under Code of Civil Procedure section 425.161 (the anti-SLAPP statute) more than three months after H&A had amended their cross-complaint to add a cause of action for false promise. Pursuant to section 425.16, subdivision (f), anti-SLAPP motions must be filed within 60 days of service of a challenged pleading. Under relevant case law, the trial court found appellants’ motion untimely, and we agree. We therefore affirm the court’s order denying the motion. H&A also requests attorney fees, which are appropriate if a defendant (or cross-defendant) files a frivolous appeal solely for the purpose of causing delay. While we squarely reject the Wymont entities’ argument that such fees are never available on appeal, we find the appeal, while lacking merit, does not qualify as frivolous, and therefore deny H&A’s request.

I FACTS Background The underlying case has visited this court twice. (See Lindsey v. Conteh (2017) 9 Cal.App.5th 1296 (Lindsey I) and Lindsey et al. v. Conteh et al. (Jan. 18, 2019, G054219) [nonpub. opn.] (Lindsey II).) This court has also decided an anti-SLAPP

1 Subsequent statutory references are to the Code of Civil Procedure unless otherwise indicated.

2 appeal in a related case (Conteh et al. v. Wymont Services Limited et al. (Nov. 14, 2019, G057161) [nonpub. opn.] (Conteh)). For brevity’s sake, we provide only the facts critical to the particular issues in this appeal. A more complete background can be found in the prior opinions, particularly Lindsey I. Very briefly, Alieu B. M. Conteh formed African Wireless, Inc. (AWI), in 1990 as a Delaware corporation. In 1997, he formed Congolese Wireless Network SPRL (Congolese Wireless) under the laws of the Democratic Republic of the Congo. AWI was principally a holding company for a 60 percent interest in Congolese Wireless. (Lindsey I, supra, 9 Cal.App.5th at p. 1299.) As of 2018, the Wymont entities, which was composed of Wymont Services Ltd., James R. Lindsey (as trustee of the Lindsey Family Trust), William Buck Johns, and Marc Van Antro, were minority shareholders, represented by Jonathan B. Sandler. (Conteh, supra, G057161.) In 2017, the Wymont entities and other parties filed the Lindsey action as a shareholder derivative suit on behalf of AWI as well as on their own behalf, alleging a long history of malfeasance on Conteh’s part. (Lindsey II, supra, G054219.) H&A represented the Wymont entities. To make a very long story short, the case resulted in terminating sanctions against Conteh and related defendants, resulting in a default judgment of approximately $93 million and the creation of a constructive trust on behalf of AWI. Conteh and related defendants were ordered to turn over certain shares and companies. Conteh and the related defendants appealed, and we ultimately affirmed the judgment. (Lindsey II, supra, G054219.) Collection efforts, unfortunately, led to more disputes. (Conteh, supra, G057161.)

The Alleged Malpractice According to the Wymont entities’ amended complaint in the instant matter, H&A committed malpractice by filing complaints in the Lindsey action that did

3 not specify the amount of damages, but sought damages in an amount to be proved at trial. After the default judgment was entered in Lindsey, the court warned the plaintiffs in the matter “that the relief on default could not exceed the amount demanded in the complaint.” According to the Wymont entities, H&A did not seek their consent to proceed without amending the complaint, nor did H&A explain the risks and consequences of failing to state a specific amount of damages. The default prove-up proceeded with the complaint that alleged damages according to proof at trial. Thus, according to the Wymont entities, their judgment against Conteh and the related parties constituted a constructive trust instead of damages of at least $530 million, plus costs and attorney fees.

Relevant Procedural History of the Instant Case On May 16, 2017, while the underlying litigation was still pending, the Wymont entities filed the instant malpractice case. On August 3, 2017, the trial court ordered the malpractice action stayed pending this court’s decision in the Lindsey case. Despite the stay, H&A filed an answer and a cross-complaint on August 9, 2017. As relevant here, the cross-complaint alleged that based on the parties’ retainer agreement, under either a breach of contract or anticipatory breach theory, the Wymont entities owed H&A $5 million. This court decided Lindsey II in January 2019. (Lindsey II, supra, G054219.) The trial court lifted the stay on May 31. In September 2019, the Wymont entities filed a first amended complaint, alleging causes of action for negligence and breach of contract, both on their own behalf and derivatively of AWI. The first amended complaint demanded “[d]amages according to proof of not less than $599 million” on the negligence claim and “[d]amages of not less than $521,000” on the breach of contract claim, representing “fees and costs paid to [H&A] which were higher than the value of the legal services” received.

4 H&A filed a first amended cross-complaint was filed on December 4, 2019. The first amended cross-complaint alleged six causes of action, including a cause of action for false promise. As pertinent here, the false promise claim (which incorporated facts from elsewhere in the first amended cross-complaint) alleged that as of 2014, H&A agreed to represent the Wymont entities for a reduced monthly fee plus a percentage of any recovery, which the first amended cross-complaint referred to as the “Handal Fee.” According to H&A, it produced numerous drafts of a written fee agreement, which the Wymont entities did not sign. They nonetheless paid the reduced fee in the amounts they had agreed to. Eventually, the Wymont entities produced their own proposed retainer agreement, which incorporated a second document called the common interest agreement. H&A executed the agreement. H&A alleged that it vigorously represented the Wymont entities in the Lindsey action, including obtaining sanctions for discovery abuse, and secured an enforceable judgment for approximately $93 million.

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