Judge: John J. Kralik, Case: 22BBCV00564, Date: 2024-09-06 Tentative Ruling


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Case Number: 22BBCV00564    Hearing Date: September 6, 2024    Dept: NCB

Superior Court of California

County of Los Angeles

North Central District

Department B

 

 

daimler truck financial services usa llc,

                        Plaintiff,

            v.

 

sky benson, et al.,

 

                        Defendants.

 

  Case No.:  22BBCV00564

 

  Hearing Date:  September 6, 2024

 

 [TENTATIVE] order RE:

Motion to vacate dismissal

 

 

BACKGROUND

A.    Allegations

Plaintiff Daimler Truck Financial Services USA, LLC (“Plaintiff”) alleges that on July 19, 2018, The Around The Clock Freightliner Group, LLC (“Dealer”) and Defendants Miller Transportation LLC and Sky Penson (“Defendants”) entered into a Conditional Sales Contract, under which Dealer agreed to sell to Defendants a 2016 Freightliner Cascadia 125.  Plaintiff alleges that the vehicle was delivered to Defendants on July 19, 2018.  Plaintiff alleges that Defendants were required to make 54 payments of $1,811.98 for the vehicle, commencing on September 2, 2018, but Defendants failed to pay the amounts. 

            The complaint, filed May 2, 2023, alleges causes of action for: (1) breach of contract; (2) money had and received; and (3) breach of personal guaranty.

B.     Relevant Background and Motion on Calendar

On May 2, 2023, the Court held an Order to Show Cause Re: Dismissal for Lack of Prosecution.  The Court noted that there were no appearances by the parties.  The Court ordered the complaint filed by Plaintiff on August 4, 2022 to be dismissed without prejudice.

On July 3, 2024, Plaintiff filed a motion to vacate the dismissal.

The Court is not in receipt of an opposition brief. 

DISCUSSION

            Plaintiff moves to set aside the dismissal, arguing that it was not aware that a dismissal had been entered in the action, it did not receive notice of the dismissal, and the Court continued to enter orders even after the dismissal had been entered.  Plaintiff moves pursuant to the discretionary and mandatory prongs of CCP § 473(b) and the inherent power of the Court. 

            The background of the procedural posture of the case is relevant:

·         On August 4, 2022, Plaintiff filed the complaint. 

·         On October 18, 2022, the Court held an OSC re: Failure to File Proof of Service of the Summons and Complaint.  Plaintiff’s counsel represented he was still trying to serve Defendants and the OSC was continued to January 3, 2023. 

·         On January 3, 2023, the Court held an OSC re: Failure to File Proof of Service of the Summons and Complaint.  Plaintiff’s counsel represented he was still trying to serve Defendants and the OSC was continued to March 28, 2023. 

·         On March 28, 2023, the Court held an OSC re: Failure to File Proof of Service of the Summons and Complaint.  No appearances were made.  The Court set an OSC re: Dismissal for Lack of Prosecution for May 2, 2023 and mailed notice to Plaintiff’s counsel. 

·         On May 2, 2023, the Court held the OSC re: Dismissal for Lack of Prosecution and no appearances were made.  The Court dismissed the complaint without prejudice and mailed notice to Plaintiff’s counsel. 

·         On August 30, 2023, Plaintiff filed an application for publication regarding Defendant Sky Benson. 

·         On September 12, 2023, the Court signed the Order for Publication. 

·         On November 17, 2023, Plaintiff filed Proof of Publication. 

·         On February 26, 2024, Plaintiff submitted a request for entry of default against Defendants and a request for dismissal of Does 1-10.  The requests were denied on the basis that the Court dismissed the case on May 2, 2023.  Notices of the rejections were served on Plaintiff’s counsel by mail on February 26, 2024. 

·         On July 3, 2024, Plaintiff filed this motion.

Plaintiff argues that the motion should be considered timely because the motion was filed within 6 months of the “actual” dismissal of the case.  Plaintiff argues that while the docket reflects that dismissal was entered on May 2, 2023, the Court nevertheless signed the Order for Publication on September 12, 2023 and did not reject the application for publication on the basis that the action had been dismissed.  Plaintiff argues that the first time it became aware of the dismissal was on February 26, 2024, when its request for default of Defendant and request for dismissal of Does 1-10 were rejected on the basis that the action had been dismissed. 

Plaintiff’s counsel E. Richard McGuire states in his declaration that prior counsel Michael Primack appeared at the “January 1” hearing and marked it as “concluded” such that no further hearing was noted.  (McGuire Decl., ¶3.)  (The Court notes that there were no hearings conducted on January 1, a holiday, in this action and assumes this was a typographical error that should have referred to January 3, 2023.)  He states that Mr. Primack left the firm less than a month after the hearing and that many files were incorrectly noted such that follow-up hearings were not scheduled.  (Id., ¶4.)  He states that he did not receive any notice of the continued hearing date, notice for his firm’s failure to appear at the March hearing, and notice of the dismissal of the action.  (Id., ¶¶5-7, 13-14.)  He states that Plaintiff submitted the application for publication on August 30, 2023, which the Court entered on September 12, 2023; Plaintiff paid the fees and had the summons published; and Plaintiff filed the proof of publication—none of these documents were rejected on the basis that the action had been dismissed.  (Id., ¶¶8-11.)  He states it was only after the Court rejected Plaintiff’s default package on February 26, 2024 that Plaintiff became aware of the dismissal.  (Id., ¶¶12, 15.)

Based on the date of the entry of dismissal on May 2, 2023, the motion to vacate pursuant to CCP § 473(b) is untimely as the motion was filed over a year after the dismissal was entered.  Although Plaintiff argues that the date of the dismissal should be February 26, 2024 (as opposed to May 2, 2023), the Court declines to “change” the dismissal date.  Here, proper notice of the OSC hearings were provided to Plaintiff’s counsel and Plaintiff’s counsel’s firm did not attend the May 2, 2023 OSC hearing when the dismissal was entered. 

As such, the motion brought pursuant to CCP § 473(b) is denied on the basis that the motion was not timely filed.  (Thompson v. Vallembois (1963) 216 Cal. App. 2d 21, 24 [finding that the Court lacked jurisdiction to grant relief under CCP § 473 after the six-month period].) 

Nevertheless, the Court will grant relief pursuant to CCP § 473(d).  Subsection (d) states: “The court may, upon motion of the injured party, or its own motion, correct clerical mistakes in its judgment or orders as entered, so as to conform to the judgment or order directed, and may, on motion of either party after notice to the other party, set aside any void judgment or order.”  Here, while the dismissal was entered on May 2, 2023, the Court accepted Plaintiff’s submissions and entered an order in favor of Plaintiff regarding service by publication and Plaintiff, relying on such orders continued to incur fees, pursued service of the summons and complaint by publication, and requested default against Defendants.  It was not until February 26, 2024 that the procedural postures of the case was correctly noted by the court staff and Plaintiff’s 2024 submissions were rejected.  This is an unusual circumstance and the Court will set aside the dismissal to allow Plaintiff to pursue this action on its merits. 

The motion to set aside the dismissal is granted pursuant to CCP § 473(d). 

CONCLUSION AND ORDER

Plaintiff Daimler Truck Financial Services USA, LLC’s motion to vacate the dismissal is granted.  Plaintiff should resubmit the request for entry of default and request for dismissal. 

The Court sets a Case Management Conference for January 2, 2025 at 8:30 a.m. 

Plaintiff shall provide notice of this order.

 

 

DATED: September 6, 2024                                                  ___________________________

                                                                                          John J. Kralik

                                                                                          Judge of the Superior Court