Judge: Douglas W. Stern, Case: 23STCV00203, Date: 2023-10-25 Tentative Ruling

Case Number: 23STCV00203    Hearing Date: January 2, 2024    Dept: 68

Shalana Beard vs. SBS Trust Deed Network, 23STCV00203

Motion for Terminating Sanctions

Background

This is an action initiated by Plaintiff Beard (now Gray) against Defendant SBS Trust Deed Network wherein Plaintiff claims that she is entitled to the excess proceeds from a foreclosure sale of real property owned by Lonnie Flowers.  Plaintiff alleges that she obtained a judgment against Flowers and filed a judgment lien against the property.  Thus, she claims that she is entitled to the excess proceeds from the foreclosure.

Defendant SBS Trust Deed Network answered and filed a Cross-Complaint in interpleader claiming that there are conflicting claims to the excess proceeds ($355,000) from the foreclosure.  It alleged that it would pay the excess funds into the Court.  It has not done so.  Both Plaintiff and Stefanie Butler have answered the interpleader action claiming entitlement to the excessive funds.

Plaintiff Brittany Gray, as successor in interest to Plaintiff Shalana Beard, (Plaintiff) has filed this motion for terminating sanctions pursuant to CCP § 2023.030(d).  After Defendant SBS Trust Deed Network failed to respond to Plaintiff’s discovery, Plaintiff filed motions to compel responses and a motion to deem requests for admissions admitted.  The Court granted Plaintiff’s motions on October 25, 2023, and ordered sanctions in the amount of $1,837.50 against Defendant.  Despite Plaintiff granting Defendant an extension to respond to the discovery, Defendant failed to respond to the discovery and has not paid the sanctions.

Due to Defendant’s failure to respond or pay the sanctions, Plaintiff filed her motion for terminating sanctions on December 4, 2023.  As part of Plaintiff’s motion, Plaintiff is requesting that Defendant’s answer be stricken, Defendant’s cross-complaint be dismissed, and default be entered against Defendant.  In the alternative, Plaintiff asks that the Court set an order to show cause hearing for why Defendant’s pleadings should not be stricken.

Defendant/Cross-Complainant SBS Trust Deed Network has chosen to ignore the motion and has filed no Opposition.  Nor has the other claimant, Butler, chosen to participate in this motion.

Analysis

CCP § 2023.030(d) states that “The court may impose a terminating sanction by…[a]n order striking out the pleadings or parts of the pleadings of any party engaging in the misuse of the discovery process…[or] [a]n order dismissing the action, or any part of the action, of that party…[or] [a]n order rendering a judgment by default against that party.”

“A decision to order terminating sanctions should not be made lightly.  But where a violation is willful, preceded by a history of abuse, and the evidence shows that less severe sanctions would not produce compliance with the discovery rules, the trial court is justified in imposing the ultimate sanction.”  (Doppes v. Bentley Motors, Inc. (2009) 174 Cal.App.4th 967, 992.)  Striking a defendant’s answer is an appropriate response to repeated discovery abuse. (Collisson & Kaplan v. Hartunian (1994) 21 Cal.App.4th 1611, 1618.)

In the present case, lighter sanctions have not produced compliance with Plaintiff’s discovery requests.  Despite the Court ordering Defendant to provide responses to Plaintiff’s requests and imposing monetary sanctions on Defendant, Defendant has still failed to comply. Because the lighter sanctions have not produced compliance, terminating sanctions are appropriate.  Defendant’s answer should be stricken, Defendant’s cross-complaint should be dismissed, and default of SBS Trust Deed Network should be entered.

The Court grants Plaintiff’s motion for terminating sanctions.

Order

1.      Plaintiff’s motion for terminating sanctions is GRANTED.

2.      Defendant SBS Trust Deed Network’s Answer is ordered stricken.  Default is entered against Defendant SBS Trust Deed Network.

3.      Defendant SBS Trust Deed Network’s cross-complaint is ordered dismissed.