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Judgments

The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.

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After judgment was entered against defendant, was set aside by the district court, and then reinstated on appeal, defendant filed motion for relief from the judgment again based on fraud on the court (Rule 60(d)) and based on newly discovered evidence and fraud (Rule 60(b)(2), (3)).  Plaintiff's judgment was for lost profits on its antitrust claims, but the new evidence… Read More

This decision affirms all but $42 million of a $344 million judgment against Johnson under the UCL and FAL for misleading advertising and concealment of the serious risks entailed in using its pelvic mesh product to cure certain conditions in women.  The trial court applied the proper test in determining whether Johnson's instructions for use and other advertising would mislead… Read More

Corso obtained a default judgment against Rejuvi in a district court in South Australia.  Corso filed a proof of claim in Rejuvi's bankruptcy proceeding.  Rejuvi appealed from a bankruptcy court order allowing Corso's claim based on the South Australia default judgment.  Held, the claim was properly allowed.  Under California's Uniform Foreign-Country Money Judgment Recognition Act (CCP 1713 et seq.), Rejuvi… Read More

Following David S. Karton, A Law Corp. v. Dougherty (2014) 231 Cal.App.4th 600, this decision holds that when a defendant pays a default judgment entered against him before successfully moving to vacate the default judgment (and hence before filing an answer), Civ. Code 1717(b)(2) applies, making the defendant the prevailing party for purposes of a fee award if the plaintiff… Read More

Rice recovered judgment against Downs.  While Downs' appeal from the judgment was pending, Rice moved for a charging order against Downs' interest in Triton, an LLC of which he was the managing member.  That motion was denied due to the automatic stay on appeal.  Glaser, Downs' lawyer, then obtained a security interest in Downs' interest in Triton, which it perfected… Read More

A breach of contract is not "wrongful conduct" sufficient to support a claim for interference with prospective economic relationships.  Here, plaintiff narrowed its claim to interference based on the defendant's breach of a nondisclosure agreement.  Held, the trial court erred in submitting that claim to the jury since it was the court's responsibility to determine whether the alleged conduct was… Read More

Defendant's $200,000 998 offer was clear, not ambiguous, and was enforceable when plaintiff recovered less than $200,000--even though the offer did not refer to the workers’ compensation lien and state whether settlement proceeds could be used to recoup the lien.  Absence of a reference to the workers' comp. lien didn't render the offer uncertain or invalid.  A party making a… Read More

The res judicata/collateral estoppel effect of a post-foreclosure unlawful detainer judgment extends only to proper conduct of the trustee's sale, not to claims of earlier wrongs committed by the lender that purportedly led eventually to the foreclosure.  Thus, here, the unlawful detainer judgment against the borrowers did not preclude them from later suing on a claim that the lender had… Read More

The trial court properly denied defendant's motion to vacate the arbitration award on the ground of manifest disregard of the law.  The arbitrator properly reconsidered his initial award and reentered an award based on other grounds after defendant's criminal conviction for fraud was vacated for retrial.  The arbitrator properly drew negative inferences from defendant's invoking the Fifth Amendment in response… Read More

The trial court did not abuse its discretion in adding P as an additional judgment debtor.  The trial court's early granting of summary judgment to P when she was initially sued in the case didn't prevent her from later being added to the judgment, since the summary judgment absolved her of indiivdual liability for the wrongs committed, while adding her… Read More

11 USC 108(c) extends time limits (such as statutes of limitation) for actions against the debtor until 30  period after the automatic stay in bankruptcy is vacated.  This decision holds that 108(c) extends the 10-year period in which a judgment creditor may apply for renewal of the judgment under CCP 683.130.  The majority opinion also disagrees with In re Lobherr… Read More

BMW sent plaintiff a 998 offer, proposing to settle this personal injury case for $15,000 in exchange for a general release.  The 998 offer did not mention entry of judgment against BMW or specify that plaintiff would file a dismissal with prejudice instead.  Plaintiff accepted the offer.  Then the parties disagreed about terms of the release and entry of judgment. … Read More

A defendant may challenge an order denying his forum non conveniens motion on an appeal from a final judgment even though CCP 418.10 allows a petition for writ of mandate from the order, just as it permits such a petition from denial of a motion to quash the summons for lack of personal jurisdiction.  But unlike the personal jurisdiction objection… Read More

Plaintiff obtained a default judgment awarding it the $100,000 he had lent defendant, plus a $100,000 "earn-out" fee, plus 10% interest on both of those sums.  Defendant moved to set the judgment aside under CCP 473(d) and appealed from denial of his motion.  Held, the judgment was in excess of jurisdiction in the sense that it was beyond the trial… Read More

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