Latest 5 Cases: Kelly v. House (Agriculture Law), Weimer v. Nationstar Mortgage, LLC (Banking), Early v. Becerra (Civil Procedure)

COVID-19 Lays Bare the Cruelty of Neoliberalism

JOSEPH MARGULIES

Cornell law professor Joseph Margulies observes how the COVID-19 pandemic is exposing the cruel folly of neoliberal governance. Margulies points out that neoliberalism—the idea that social problems are better solved by the private sector than by government—has brought millions of Americans to the edge of financial and physical ruin, and COVID-19 will push them over. He argues that now more than ever, we must be communitarians rather than individualists.

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Kelly v. House

Docket: A153735(First Appellate District)

Opinion Date: April 2, 2020

Judge: Sanchez

Areas of Law: Agriculture Law, Contracts, Legal Ethics, Real Estate & Property Law

House owns an organic farm, adjacent to the Property, formerly owned by Moller. In 2002, House entered into a six-year lease with Moller for 35 farmable acres, containing a renewal option and a right of first refusal. House converted the Property to certified organic status. In 2007, Moller, with no notice to House, agreed to sell the Property to Foss. Foss, a licensed real estate agent, prepared the agreement, which did not contain a fixed closing date. House became aware of the agreement, notified Foss about the right of first refusal, and sued Moller. While the lease remained in effect, Foss entered the Property and sprayed nonorganic herbicides, cut down trees, and altered the fencing. House sued Foss. Moller filed for bankruptcy. The Property was foreclosed on and sold to a third party in 2015. The trial court found Foss liable for inducing a breach of contract, intentionally interfering with House’s prospective economic advantage, conversion, trespass, and negligence and awarded compensatory damages of $1,669,705 and $1,000 in punitive damages. House sought attorney fees and costs. The court denied the motion. The court of appeal remanded for a determination of reasonable attorney fees under Code of Civil Procedure 1021.9, which refers to “any action to recover damages to personal or real property resulting from trespassing on lands either under cultivation or intended or used for the raising of livestock.” The damages award is supported by substantial evidence.

Weimer v. Nationstar Mortgage, LLC

Docket: C080550(Third Appellate District)

Opinion Date: April 2, 2020

Judge: William J. Murray, Jr.

Areas of Law: Banking, Civil Procedure, Real Estate & Property Law

Plaintiff Robert Weimer, Jr., purchased real property in Carnelian Bay in 1993. He refinanced the mortgage in 2006 with a loan from defendant Bank of America, N.A. (BANA). After defaulting, plaintiff entered into a loan modification process with BANA. Subsequently, loan servicing was transferred, successively, to defendants Specialized Loan Servicing, LLC (SLS) and Nationstar Mortgage, LLC (Nationstar). According to plaintiff, BANA, SLS, and Nationstar successively each engaged in deliberate and negligent misconduct in the loan modification process. In 2014, BANA transferred beneficial interest in the loan to defendant U.S. Bank, N. A. (U.S. Bank), as trustee for the Certificateholders of Banc of America Funding Corporation Mortgage Pass Through Certificates Series 2007-7. Eventually, Nationstar, acting as U.S. Bank’s agent, recorded a notice of trustee’s sale and had an agent enter onto the property and change the locks. After plaintiff commenced this action, BANA, U.S. Bank, and Nationstar demurred to a first amended complaint. The trial court sustained the demurrer without leave to amend as to BANA, concluding that the action against it was time-barred. As to the other defendants, the court sustained the demurrer with leave to amend. Plaintiff filed a second amended complaint, asserting intentional and negligent misrepresentation, negligence, trespass to land, seeking declaratory relief, and asserting violations of the unfair competition law. U.S. Bank and Nationstar demurred, SLS separately demurred, and the trial court sustained the demurrers without leave to amend. On appeal, plaintiff contended the trial court erred in concluding that the action against BANA was time-barred because BANA’s actions were part of a civil conspiracy with the other defendants, and the timeliness of plaintiff’s action against BANA must be measured from the last overt act. Plaintiff further asserted the trial court erred in sustaining the demurrers to the second amended complaint because he sufficiently stated each cause of action. Furthermore, plaintiff asserted the trial court should have granted him leave to amend, however, he largely contended his complaint required no amendment. In the unpublished portion of its opinion, the Court of Appeal concluded that the action as asserted against BANA was indeed time-barred. The Court further concluded plaintiff sufficiently stated causes of action sounding in intentional and negligent misrepresentation and violations of the unfair competition law against the remaining defendants. In the published portion of its opinion, the Court concluded the remaining defendants had a duty of care and that plaintiff sufficiently stated a cause of action for negligence against them. Therefore, the Court reversed the judgments of dismissal as to U.S. Bank, SLS, and Nationstar and reversed the orders sustaining the demurrers as to the causes of action in the second amended complaint for intentional misrepresentation, negligent misrepresentation, negligence, and violations of the unfair competition law. In all other respects, the judgments were affirmed.

Early v. Becerra

Docket: C087947(Third Appellate District)

Opinion Date: April 2, 2020

Judge: Vance W. Raye

Areas of Law: Civil Procedure, Election Law, Legal Ethics

Appellants Eric Early and his election committee, Eric Early for Attorney General 2018 (collectively, Early), appealed the denial of their petition for writ of mandate to preclude respondent Xavier Becerra from running for Attorney General in 2018. Early contended that Becerra, appointed Attorney General by former Governor Brown in 2016, was not eligible for the office under Government Code section 12503. Becerra was an “inactive” member of the California State Bar from 1991 to the end of 2016. Government Code section 12503 provided: “No person shall be eligible to the office of Attorney General unless he shall have been admitted to practice before the Supreme Court of the state for a period of at least five years immediately preceding his election or appointment to such office.” Early argues that an “inactive” attorney may not practice law in California and therefore is not “admitted to practice” under Government Code section 12503. The Court of Appeal disagreed, finding both active and inactive attorneys were members of the State Bar. The phrase “admitted to practice” referred to the event of admission to the bar and the status of being admitted, and did not require engagement in the “actual” or “active” practice of law. Becerra did not cease to be “admitted to practice” in California when he voluntarily changed his status to “inactive.”

Coalition for an Equitable Westlake/MacArthur Park v. City of Los Angeles

Docket: B293327(Second Appellate District)

Opinion Date: April 2, 2020

Judge: Moor

Areas of Law: Environmental Law, Zoning, Planning & Land Use

Plaintiff and the Coalition filed a petition for writ of mandate, seeking a peremptory writ directing the City to set aside various land use approvals, as well as determinations and documents approved under the California Environmental Quality Act (CEQA). The trial court sustained the demurrers of real parties and the Coalition without leave to amend and dismissed the Coalition's petition. The Court of Appeal affirmed, holding that the Coalition's CEQA claims are time-barred because they were filed more than 30 days after the City filed a facially valid Notice of Determination. To the extent the Coalition argues on appeal that the agency lacked authority to make any determinations under CEQA or lacked authority to approve the project, while such claims could have been considered as part of a timely action, the court held that they are also time-barred.

In re A.M.

Docket: E073805(Fourth Appellate District)

Opinion Date: April 2, 2020

Judge: Carol D. Codrington

Areas of Law: Family Law, Native American Law

A.M. (Mother) appealed the juvenile court’s order terminating her parental rights as to her two children, 11-year-old A.M. and six-year-old J.T., Jr. In late 2017, DPSS received an immediate response referral with allegations of general neglect and sexual abuse. It was reported that Mother had allowed her two sons to go into a hotel room for hours with an 18-year-old male stranger who sexually abused them. After Mother discovered the sexual abuse, she failed to report the alleged crime to law enforcement. Instead, the suspect disclosed what he had done to his mother, who then drove the suspect to the police station to turn himself in. On appeal, Mother argued: (1) the order terminating her parental rights should have been reversed because the Riverside County Department of Public Social Services (DPSS) failed to comply with the inquiry and notice requirements of the Indian Child Welfare Act (ICWA) and with Welfare and Institutions Code section 224 et seq; and (2) all orders had to be reversed because the juvenile court failed to comply with the Uniform Child Custody Jurisdiction and Enforcement Act (UCCJEA) because California did not have subject matter jurisdiction. The Court of Appeal rejected Mother’s contentions and affirmed the judgment.