Judge: James C. Chalfant, Case: 22STCV39344, Date: 2023-01-12 Tentative Ruling
Case Number: 22STCV39344 Hearing Date: January 12, 2023 Dept: 85
Shipflex Logistics LLC
v. Pilot Inc. and Calvin Wang, 22STCV39344
Tentative decision on applications for preliminary injunction enjoining self-help
eviction efforts: granted
Plaintiff
Shipflex Logistics LLC (“Shipflex”) applies for a preliminary injunction enjoining
Defendants Pilot Inc. (“Pilot”) and Calvin Wang (“Calvin”) from using self-help
to evict Shipflex from 13000 Temple Avenue, City of Industry, CA 91746
(“Property”).
The
court has read and considered the moving papers, opposition,[1] and
reply, and renders the following tentative decision.
A.
Statement of the Case
1.
Complaint
Plaintiff
Shipflex filed its Complaint on December 17, 2022, alleging (1) breach of lease,
(2) breach of the covenant of quiet enjoyment, (3) intentional interference
with prospective economic enjoyment, and (4) violation of Business and
Professions Code section 17200 (“Section 17200”). The Complaint alleges in pertinent part as
follows.
Shipflex
operates a warehouse on the Property. On
March 7, 2022, Shipflex entered into an Operating Services Agreement (“Agreement”)
to rent the Property from Pilot for 60 months.
Shipflex performed all obligations under the Agreement.
From
May 2022, Pilot has engaged in increasing harassment as a form of self-help to
induce Shipflex to leave the Property, which Shipflex believes has occurred because
Pilot received offers of higher rent payments.
Pilot has (1) blocked access to the Property with automobiles, trailers,
and pallets, (2) billed for utilities which Pilot is liable to pay under the Agreement
and threatened to stop cleaning restrooms if Shipflex does not pay, and (3)
assigned 30 truck parking spaces to unrelated third parties which are designated
for Shipflex.
On
November 5, 2022, Pilot locked Shipflex out of the Property. On December 5, 2022, Pilot cut off the
electricity. Pilot then demanded that Shipflex sign an “Operating Services Termination
Agreement” (“Termination Agreement”) before it would restore electricity. Pursuant to the proposed Termination Agreement,
if Shipflex did not leave the Property by February 28, 2023, Pilot could (1) shut
off the power; (2) liquidate all assets remaining on the Property; and (3)
charge a 200% holdover rate. Shipflex
refused to sign.
Shipflex
seeks (1) at least $200,000 in compensatory damages for Pilot’s breach of the Agreement,
(2) injunctive relief to prevent further constructive eviction, (3) punitive
damages, (4) a temporary restraining order (“TRO”), preliminary injunction, and
permanent injunction enjoining Pilot from interfering with Shipflex’s quiet
enjoyment of the Property, and (5) costs of suit.
2.
Course of Proceedings
On
December 22, 2022, Department 1 (Hon. Michelle Williams Court) granted Shipflex’s
ex parte application for a TRO and order to show cause re: preliminary
injunction (“OSC”) enjoining Defendants from any self-help eviction
efforts. The court set the OSC hearing
for January 12, 2023 and ordered proof of service to be filed by January 3,
2023.
That
same day, Shipflex served Defendants by email with the Complaint, Summons, and
notice and moving papers for the ex parte application for a TRO and OSC
re: preliminary injunction.
On
December 23, 2022, Shipflex served Calvin and Pilot with the Complaint,
Summons, and moving papers by substitute service, effective January 2, 2023.
On
December 29, 2022, Shipflex served Calvin the Complaint, Summons, and moving
papers by substitute service, effective January 8, 2023.
B.
Applicable Law
An
injunction is a writ or order requiring a person to refrain from a particular
act; it may be granted by the court in which the action is brought, or by a
judge thereof; and when granted by a judge, it may be enforced as an order of
the court. CCP §525. An injunction may be more completely defined
as a writ or order commanding a person either to perform or to refrain from
performing a particular act. See Comfort
v. Comfort, (1941) 17 Cal.2d 736, 741. McDowell v. Watson, (1997) 59
Cal.App.4th 1155, 1160.[2] It is an equitable remedy available generally
in the protection or to prevent the invasion of a legal right. Meridian, Ltd. v. City and County of San
Francisco, et al., (1939) 13 Cal.2d 424.
The
purpose of a preliminary injunction is to preserve the status quo
pending final resolution upon a trial. See
Scaringe v. J.C.C. Enterprises, Inc., (1988) 205 Cal.App.3d 1536. Grothe
v. Cortlandt Corp., (1992) 11 Cal.App.4th 1313, 1316; Major v. Miraverde
Homeowners Assn., (1992) 7 Cal.App.4th 618, 623. The status quo has been defined to
mean the last actual peaceable, uncontested status which preceded the pending
controversy. Voorhies v. Greene
(1983) 139 Cal.App.3d 989, 995, quoting United Railroads v. Superior Court,
(1916) 172 Cal. 80, 87. 14859 Moorpark Homeowner’s Assn. v. VRT Corp.,
(1998) 63 Cal.App.4th 1396. 1402.
A
preliminary injunction is issued after hearing on a noticed motion. The complaint normally must plead injunctive
relief. CCP §526(a)(1)-(2).[3] Preliminary injunctive relief requires the use
of competent evidence to create a sufficient factual showing on the grounds for
relief. See e.g. Ancora-Citronelle
Corp. v. Green, (1974) 41 Cal.App.3d 146, 150. Injunctive relief may be granted based on a
verified complaint only if it contains sufficient evidentiary, not ultimate,
facts. See CCP §527(a). For this reason, a pleading alone rarely
suffices. Weil & Brown, California
Procedure Before Trial, 9:579, 9(ll)-21 (The Rutter Group 2007). The burden of proof is on the plaintiff as
moving party. O’Connell v. Superior
Court, (2006) 141 Cal.App.4th 1452, 1481.
A
plaintiff seeking injunctive relief must show the absence of an adequate
damages remedy at law. CCP §526(4); Thayer
Plymouth Center, Inc. v. Chrysler Motors, (1967) 255 Cal.App.2d 300, 307; Department
of Fish & Game v. Anderson-Cottonwood Irrigation Dist., (1992) 8
Cal.App.4th 1554, 1565. The concept of
“inadequacy of the legal remedy” or “inadequacy of damages” dates from the time
of the early courts of chancery, the idea being that an injunction is an
unusual or extraordinary equitable remedy which will not be granted if the
remedy at law (usually damages) will adequately compensate the injured
plaintiff. Department of Fish &
Game v. Anderson-Cottonwood Irrigation Dist., (1992) 8 Cal.App.4th 1554,
1565.
In
determining whether to issue a preliminary injunction, the trial court
considers two factors: (1) the reasonable probability that the plaintiff will
prevail on the merits at trial (CCP §526(a)(1)), and (2) a balancing of the
“irreparable harm” that the plaintiff is likely to sustain if the injunction is
denied as compared to the harm that the defendant is likely to suffer if the
court grants a preliminary injunction.
CCP §526(a)(2); 14859 Moorpark Homeowner’s Assn. v. VRT Corp., (1998)
63 Cal.App.4th 1396. 1402; Pillsbury, Madison & Sutro v. Schectman,
(1997) 55 Cal.App.4th 1279, 1283; Davenport v. Blue Cross of California,
(1997) 52 Cal.App.4th 435, 446; Abrams v. St. Johns Hospital, (1994) 25
Cal.App.4th 628, 636. Thus, a preliminary
injunction may not issue without some showing of potential entitlement to such
relief. Doe v. Wilson, (1997) 57
Cal.App.4th 296, 304. The decision to
grant a preliminary injunction generally lies within the sound discretion of
the trial court and will not be disturbed on appeal absent an abuse of
discretion. Thornton v. Carlson,
(1992) 4 Cal.App.4th 1249, 1255.
A
preliminary injunction ordinarily cannot take effect unless and until the
plaintiff provides an undertaking for damages which the enjoined defendant may
sustain by reason of the injunction if the court finally decides that the
plaintiff was not entitled to the injunction.
See CCP §529(a); City of South San Francisco v. Cypress Lawn
Cemetery Assn., (1992) 11 Cal.App.4th 916, 920.
C.
Statement of Facts
1. Shipflex’s Evidence
On March 7, 2022,
Shipflex and Pilot entered into the 60-month Agreement for the 100,000
square-foot Property. Wang Decl., ¶7; App.
Ex. A. The Agreement explains that
Shipflex will perform third-party logistics services on the Property consisting
of warehousing and distribution. Ex. A,
Schedule 1.1. Shipflex is accorded a
specific area in the warehouse in which it will warehouse furniture, office
supplies, pet, consumer electronics, and home décor. Ex. A, Schedules 1.2, 1.4. Shipflex shall pay rent for this space is $1.40
per square foot beginning May 1, 2022, with Pilot to cover all taxes and
utilities during the lease. Ex. A,
Schedule 2.1. Shipflex must also to pay
a security deposit equal to triple the monthly rent. Ex. A, Schedule 2.1.
Shipflex
performed all obligations under the Agreement. Wang Decl., ¶8. Shipflex believes that Pilot has received
offers of higher rent payments for Shipflex’s space. Wang Decl., ¶9.
Beginning
in May 2022, Pilot has engaged in increasing harassment as a form of self-help
to induce Shipflex to end the Agreement.
Wang Decl., ¶9. Pilot has (1)
blocked access to the Property with automobiles, trailers, and pallets, (2)
billed for utilities Pilot is liable for under the Agreement and threatened to
stop cleaning restrooms and lock doors if Shipflex does not pay, and (3)
assigned 30 truck parking spaces to unrelated third parties that are designated
for Shipflex. Wang Decl., ¶10.
Pilot did not follow the mandatory notices and procedures in
use for unlawful detainer litigation per CCP section 1171. Wang Decl., ¶9. On November 18, 2022, Pilot locked Shipflex
out of the Property. Wang Decl.,
¶10. On December 5, 2022 and thereafter Pilot
cut the electricity. Wang Decl., ¶10.
Pilot
demanded that Shipflex sign the Termination Agreement before it would restore
electricity. Wang Decl., ¶11, Ex.
B. Pursuant to that document, Shipflex must
(1) leave the Property by February 28, 2023, (2) pay the rent for December 2022
and January 2023, (3) surrender the deposit to pay for damages Shipflex caused,
with the remaining balance to be refunded after, and (4) waive all right to sue
Pilot. Ex. B. If Shipflex did not vacate the Property on
time, Pilot could (1) shut off the power, (2) liquidate all remaining assets on
the Property, and (3) charge a 200% holdover rate. Ex. B.
Pilot
did not negotiate the Termination Agreement with Shipflex before it presented
the document for Shipflex to sign. Wang Decl.,
¶11. Pilot texted that one of its
employees would email the contract. Wang
Decl., ¶12, Ex. C. If all was well, Shipflex
could sign it to get the electricity immediately restored. Wang Decl., ¶12, Ex. C. Shipflex has not signed the Termination
Agreement. Wang Decl., ¶14, Ex. B. The electricity and heat are still cut off,
and the business relations have suffered as a result. Wang Decl., ¶15. Shipflex has not received any notice of unlawful
detainer. Wang Decl., ¶14.
2. Pilot’s Evidence
On January 24, 2022, Shipflex
negotiated the Agreement with Pilot’s Chief Financial Officer (“CFO”). Opp. Ex. A.
Shipflex’s Chief Executive Officer (“CEO”) informed Pilot’s CFO that its
attorney would draft the Agreement and send it to Pilot for review. Opp. Ex. A.
The draft became the Agreement.
Opp. Ex. B.
a. Insurance
Section 7.2 of the
Agreement requires Shipflex to secure general liability and workers’
compensation insurance. Opp. Ex. B.
On June 15, 2022, Pilot
Office Manager Martha Gonzalez (“Gonzalez”) asked Shipflex to provide the
certificate of general liability insurance, but it never responded. Gonzalez Decl., ¶2; Opp. Ex. C. On June 29, 2022, Gonzalez repeated the
request and asked for the certificate of workers’ compensation insurance. Gonzalez Decl., ¶3; Opp. Ex. C. Felix Wu (“Wu”) of Shipflex emailed a copy of
a certificate of insurance for general liability insurance and promised to send
the certificate of workers’ compensation insurance soon. Gonzalez Decl., ¶4; Opp. Ex. C.
Gonzalez noted that
the certificate of insurance was incorrect and requested that Wu correct
it. Gonzalez Decl., ¶5; Opp. Ex. C. Gonzalez followed up on her request for both certificates
of insurance on July 15, July 19, and August 2, 2022. Gonzalez Decl., ¶¶ 6-8; Opp. Ex. C.
On August 2, 2022,
Shipflex emailed a certificate of insurance for worker’s compensation insurance
for Zenith Technologies (“Zenith”).
Gonzalez Decl., ¶9; Opp. Ex. C. Gonzalez
requested that Shipflex change the certificate because Zenith’s name is not on
the lease. Gonzalez Decl., ¶10; Opp. Ex.
C. Shipflex explained that Zenith is the
parent company that paid all employees.
Opp. Ex. C.
As of January 5, 2023,
Shipflex has not provided the corrected certificate of insurance for either
type of required insurance. Gonzalez
Decl., ¶11. On October 10, 2022,
Gonzalez emailed Shipflex a notice that this failure constituted a default
under the Agreement and Shipflex should vacate the premises by the end of
2022. Gonzalez Decl., ¶25.
b. Fire Code
Section 4.1(b) of the
Agreement requires Shipflex to comply with all applicable federal, state and
local laws, rules, regulations, statutes, ordinances, codes and regulatory
policies in effect, and any applicable judicial or administrative
interpretation thereof. Opp. Ex. B.
On September 23, 2022, the
Los Angeles Fire Department’s (“LAFD”) official inspection report claimed that
Dreamway Express (“Dreamway”) violated several regulations on the
Property. Gonzalez Decl., ¶12; Opp. Ex. E. LAFD issued five code violations against
Shipflex between September and November 2022.
Gonzalez Decl., ¶¶ 13-17; Opp. Ex. E.
c. Property Damage and Other Breaches
On May 27, 2022,
Gonzalez emailed Wu about damage to the warehouse or Property. Gonzalez Decl., ¶19. Gonzalez also emailed Shipflex about (1)
damages to rolling doors on July 19, 2022, (2) damages to a door on September
21, 2022, and (3) damages to the east dock fence caused by one of Shipflex’s
drivers on September 26, 2022. Gonzalez
Decl., ¶¶ 20-22; Opp. Ex. D. Shipflex
also removed and added construction improvements without notice to Pilot or
permission from the city. Gonzalez
Decl., ¶27.
Shipflex has entered
other warehouse space on the Property, including Pilot’s, without permission or
informing the owner who just entered. Escanuela
Decl., ¶2. Customers also complained
that they cannot pick up an order because Shipflex’s trucks are blocking the
door. Escanuela Decl., ¶2; Opp. Ex. D. Shipflex has backed its trucks into doors and
walls, breaking them multiple times.
Escanuela Decl., ¶2; Yanez Decl., ¶4.
Shipflex parks its
trucks near propane tanks in the red areas marked “DO NOT PARK HERE.” Yanez Decl., ¶2; Opp. Ex. D. Shipflex performs maintenance on its trucks
in those areas. Yanez Decl., ¶2. Requests for Shipflex to move the trucks have
failed. Yanez Decl., ¶3. Shipflex sometimes claims it does not even
know who owns the trucks. Yanez Decl.,
¶4.
Shipflex also has left a
great deal of trash in the parking lot. Escanuela
Decl., ¶2; Yanez Decl., ¶5; Opp. Ex. D.
3. Reply Evidence
Pilot continues to deny
Shipflex parking spaces under the Agreement.
Reply Wang Decl., ¶3. Due to the
fact that Pilot never provided the required 30 parking spaces, Shipflex has not
had enough spaces. Reply Wang Decl.,
¶4. As a result, Shipflex has had to
constantly move its cars and trucks around the yard. Reply Wang Decl., ¶4. Whenever Gonzalez asked Shipflex to move its
trucks, Shipflex reacted immediately. Reply
Wang Decl., ¶4.
Shipflex’s personnel
sometimes enter Pilot’s warehouse because, under the Agreement Pilot allows
Shipflex to use Pilot’s office, kitchen, and restroom. Reply Wang Decl., ¶4.
Shipflex is covered by a
commercial insurance policy that complies with the Agreement and was provided
to Piolot in October 2022. Reply Wang
Decl., ¶9. Shipflex does not carry
worker’s compensation insurance because it has no employees. Reply Wang Decl., ¶10. Shipflex’s business is carried out by employees
of its parent, Zenith Technology, Inc., which does have worker’s compensation
insurance. Reply Wang Decl., ¶10.
Since LAFD’s first
visit, Shipflex has worked closely with the inspector to obtain the necessary
permit. Reply Wang Decl., ¶11. Every time Shipflex has caused accidental
damage to the Property, it has paid the repair cost immediately. Reply Wang Decl., ¶412
D.
Analysis
Plaintiff
Shipflex seeks a preliminary injunction enjoining Defendants Pilot and Calvin from
efforts to evict Shipflex from the Property not authorized under CCP section 1171
et. seq. App. at 2.
1.
Probability of Success
The
Complaint alleges claims for (1) breach of lease, (2) breach of the covenant of
quiet enjoyment, (3) intentional interference with prospective economic
enjoyment, and (4) violation of section 17200.
Shipflex
presents evidence that Pilot has engaged in self-help eviction methods. Shipflex asserts that Pilot’s self-help actions
are prohibited by CCP section 1161 and case law. Kassan v. Stout, (1973) 9 Cal.3d 39,
43. App. at 6. The Agreement explains that
Shipflex operates a warehousing business on the Property. Wang Decl., ¶7; App. Ex. A. Pilot’s efforts to evict Shipflex through
self-help or otherwise harm its business without complying with unlawful
detainer law would violate
section 17200 and breach the covenant of quiet enjoyment in the Agreement.
A person is guilty of a forcible entry who “after entering peaceably upon
real property, turns out by force, threats, or menacing conduct, the party in
possession.” CCP §1159(a)(2). The “party in possession” refers to any
person who “hires real property,” including tenants, lessees, boarders, and
lodgers. CCP §1159(b); Spinks v.
Equity Residential Briarwood Apartments, (“Spinks”) (2009) 171
Cal.App.4th 1004, 1037.
A person is guilty
of a forcible detainer who “[b]y force, or by menaces and threats of violence,
unlawfully holds and keeps the possession of any real property, whether the
same was acquired peaceably or otherwise.”
CCP §1160(a)(1). This statute
protects the “occupant of real property,” meaning one “in the peaceable and
undisturbed possession of such lands.”
CCP §1160; Spinks, supra,
171 Cal.App.4th at 1038.
CCP sections 1159
and 1160 “reflect a policy, with deep roots in English law, barring the use of
forceful self-help to enforce a right to possession of real property and
requiring instead the use of judicial process to gain possession.” Glass v. Najafi, (2000) 78
Cal.App.4th 45, 49.
Pilot
admits that it turned the electricity off to at least part of the warehouse on
the Property. Opp. at 3.[4] Pilot will not turn the electricity back on until
Shipflex signs the Termination Agreement requiring it to vacate the premises by
February 2023 or pay a 200% holdover fee.
Wang Decl., ¶¶ 11-12, App. Exs. B-C. Pilot employee Gonzalez admits that she told
Shipflex that it must vacate the premises by the end of 2022. Gonzalez Decl., ¶25.
Pilot
asserts that the Agreement is a license agreement that permits Shipflex to
perform a acts on the Property and conveys no estate in land. Eastman v. Piper, (1924) 68 Cal.App.
554. As a result, Pilot suggests that the Agreement
is not a lease. Opp. at 3.
Agreements for use
of space where others are also permitted to use the space for ingress and
egress are mere licenses. San Jose
Parking, Inc. v. Superior Court, (“San Jose Parking”) (2003)
110 Cal.App.4th 1321, 1328; Qualls v. Lake Berryessa Enterprises, Inc.,
(“Qualls”) (1999) 76 Cal.App.4th 1277, 1285. Whether a contract confers a mere license or
instead creates a tenancy is a question of law.
Spinks, supra, 171
Cal.App.4th at 1040. Courts look to the
contract to determine the parties’ expressed intent. Qualls, supra, 76 Cal.App.4th at 1283.
The fundamental goal of contractual interpretation is to
give effect to the mutual intention of the parties. Bank of the West v. Superior Court,
(1992) 2 Cal.4th 1254, 1264. This mutual
intention is determined by objective manifestations of the parties’ intent,
including the words used in the agreement, as well as extrinsic evidence of
such objective matters as the surrounding circumstances under which the parties
negotiated or entered into the contract, the object, nature and subject matter
of the contract, and the subsequent conduct of the parties. Civil Code §§1635-56; Morey v. Vannucci,
(1998) 64 Cal.App.4th 904. The parties’
intent should be ascertained from the contract alone, if possible. Civil Code §1639. The interpretation should give effect to
every part of the contract, if reasonably practicable. Civil Code §1640. The words of a contract are to be interpreted
in their ordinary sense (Civ. Code §1644), and technical words are to be
interpreted as usually understood by persons in the business to which they
relate. Civil Code §1645. Words inconsistent with the main intention of
the parties are to be rejected. Civil
Code §1653. Any uncertainty in a
contract is to be construed most strongly against the party responsible for
it. Civil Code §1654.[5]
The
parties present different versions of the Agreement, and Shipflex’s version
contains language reflecting that it is a lease. App. at Ex. A; Opp. at Ex. B. Assuming arguendo that Pilot’s version
is the actual Agreement, it provides for Shipflex to provide warehouse services
on the Property. However, Shipflex is
not simply accorded a right of ingress and egress to the warehouse but rather
is given a unique space. Ex B, Schedule 1.2. The Agreement also provides that if there is
any additional space available to rent, Shipflex has priority to lease the
space from Pilot “with the same terms and conditions as this original lease
agreement.” Ex. B, Schedule 2.1. For
this space, Shipflex must pay rent of $1.40 per square foot plus a security deposit.
Ex. B, Schedule 2.1. Pilot employee
Gonzalez also called the Agreement a lease when she said that the insurance
certificates needed to be in Shipflex’s name because Shipflex’s name was on the
lease. Gonzalez Decl., ¶10; Opp. Ex. C. The Agreement is a lease.
Given
that Shipflex leases warehouse space under the Agreement, the rest of Pilot’s
arguments have no merit. Pilot presents
evidence that Shipflex has breached the Agreement by violating fire code
regulations and failed to correct them (Gonzalez Decl., ¶¶ 13-17; Opp.
Exs. B, E), failing to provide certificates of insurance for general liability
and worker’s compensation insurance in its own name (Gonzalez Decl., ¶¶ 3-11;
Opp. Exs. B, C), entering other warehouses on the Property without permission
(Escanuela Decl., ¶2), blocking doors and walls on the Property (Escanuela
Decl., ¶2; Opp. Ex. D; Yanez Decl., ¶¶ 3-4), leaving mountains of cardboard in
the parking lot (Yanez Decl., ¶5; Opp. Ex. D), damaging the Property (Gonzalez
Decl., ¶¶ 20-22; Opp. Ex. D), and removing and adding construction improvements
without notice to Pilot or permission from the city (Gonzalez Decl., ¶27). These breaches do not give Pilot the right to
evict Shipflex except through the unlawful detainer process.
Shipflex has
demonstrated a probability of success on its section 17200 and breach of the covenant
of quiet enjoyment claims
based on tenant protections against self-help evictions.
2.
Balance of Hardships
In
determining whether to issue a preliminary injunction, the second factor which
a trial court examines is the interim harm that plaintiff is likely to sustain
if the injunction is denied as compared to the harm that the defendant is
likely to suffer if the court grants a preliminary injunction. Donahue Schriber Realty Group, Inc. v. Nu
Creation Outreach, (2014) 232 Cal.App.4th 1171, 1177. This factor involves consideration of the
inadequacy of other remedies, the degree of irreparable harm, and the necessity
of preserving the status quo. Id.
Shipflex alleges, and Pilot does not deny,
that the loss of electricity and supposed lockdown of the Property has harmed
important business relations. Wang
Decl., ¶15. Were Pilot to engage in
self-help eviction efforts again, it could prevent Shipflex operations and
impact its revenue and its viability as a company. App. at 5.
Pilot argues that
a preliminary injunction will harm the other companies that use the warehouse
and the general public. Opp. at
6-8. Pilot ignores the fact that it can file an unlawful detainer action
against Shipflex to protect itself and its customers. Pilot can also sue Shipflex for tort damages
based on the harm Shipflex has caused to the Property, and to Pilot’s
reputation with its customers. A
preliminary injunction will only prohibit self-help eviction efforts which
Pilot admits it should not do. Opp. at
5.
The
balance of hardships favors a preliminary injunction.
E.
Conclusion
The
application for a preliminary injunction is granted. Shipflex has not provided a proposed
preliminary injunction and must do so within two court days or it will be
waived.
The court must require a bond
supporting the preliminary injunction.¿ The purpose of a bond is to cover the
defendant’s damages from an improvidently issued injunction.¿ CCP §529(a).¿ In
setting the bond, the court must assume that the preliminary injunction was
wrongly issued.¿ Abba Rubber Co. v. Seaquist, (1991) 235 Cal.App.3d 1,
15.¿ The damages include any lost profits resulting from the
injunction. See Allen v.
Pitchess, (1973) 36 Cal.App.3d 321, 327-28.
The attorney’s fees necessary to successfully procure a final decision
dissolving the injunction also are damages that should be included in setting
the bond. Abba, supra, 235 Cal.App.3d at 15-16. While Abba reasoned that the
plaintiff’s likelihood of prevailing is irrelevant to setting the bond, a more
recent case disagreed, stating that the greater the likelihood of the plaintiff
prevailing, the less likely the preliminary injunction will have been wrongly
issued, and that is a relevant factor for setting the bond. Oiye v. Fox, (2012) 211 Cal.App.4th
1036, 1062. In lieu of a bond, the judge
may permit a deposit into court. CCP
§995.710.
Neither
party discusses the bond to be issued.
As discussed above, the only actions to be enjoined are those constituting
self-help eviction efforts. The bond to
prevent this unlawful action should be modest.
The court will discuss the amount of the bond with counsel at
hearing.
[1]
Defendant Pilot failed to lodge a courtesy copy of its opposition and
supporting declarations in violation of the Presiding Judge’s First Amended General
Order for Electronic Filing. Pilot’s
counsel is admonished to lodge courtesy copies of all filings in this lawsuit.
[2] The
courts look to the substance of an injunction to determine whether it is
prohibitory or mandatory. Agricultural
Labor Relations Bd. v. Superior Court, (1983) 149 Cal.App.3d 709, 713. A mandatory injunction — one that mandates a
party to affirmatively act, carries a heavy burden: “[t]he granting of a
mandatory injunction pending trial is not permitted except in extreme cases
where the right thereto is clearly established.” Teachers Ins. & Annuity Assoc. v.
Furlotti, (1999) 70 Cal.App.4th 187, 1493.
[3]
However, a court may issue an injunction to maintain the status quo
without a cause of action in the complaint.
CCP §526(a)(3).
[4]
Pilot’s opposition is unpaginated in violation of CRC 2.109. Pilot’s counsel is ordered to paginate all
further filings in this lawsuit.
[5] Where
the meaning of words used in a contract is disputed, the court must
provisionally receive any proffered extrinsic evidence which is relevant to
show whether the contract is reasonably susceptible of a particular
meaning. Pacific Gas & Electric
Co. v. G.W. Thomas Drayage, (1968) 69 Cal.2d 33, 39-40. Even if a contract appears unambiguous on its
face, a latent ambiguity may be exposed by extrinsic evidence which reveals
more than one possible meaning to which the language of the contract is
susceptible. Id. at 40, n.8. Extrinsic evidence is thus admissible to
interpret the contract, as long as such evidence is not used to give the contract
a meaning to which it is not reasonably susceptible. Morey v. Vannucci,
(1998) 64 Cal.App.4th 904.
Neither side offers extrinsic
evidence of the Agreement’s negotiation or performance that would bear on
interpretation.