Judge: Malcolm Mackey, Case: 19STCV04175, Date: 2022-08-04 Tentative Ruling



Case Number: 19STCV04175    Hearing Date: August 4, 2022    Dept: 55

TATSU RAMEN, LLC v. JUAN CARLOS RIVAS                     19STCV04175

Hearing Date:  8/4/22,  Dept. 55

#8:   

ORDER TO SHOW CAUSE AS TO WHY MANUEL DEJESUS RIVAS SHOULD NOT BE HELD IN CONTEMPT FOR FAILURE TO APPEAR FOR HIS COURT ORDERED DEPOSITION.

ORDER TO SHOW CAUSE AS TO WHY JUAN CARLOS RIVAS SHOULD NOT BE HELD IN CONTEMPT FOR FAILURE TO APPEAR FOR HIS COURT ORDERED DEPOSITION.

 

Notice:  Not provided yet.  (Personal, and sometimes substituted, service has been authorized upon contemnors.  In re Abrams (1980) 108 Cal. App. 3d 685, 691.).

No Opposition

 

MP:     Plaintiff

           

RP:     

 

Summary

 

On 02/07/19, Plaintiff Tatsu Ramen, LLC filed the instant action against Defendants Juan Carlos Rivas, Ryutaro Isobe, B&B International, LLC, Wakou USA, Inc., and Mutual Trading Company, Inc.  Plaintiff alleges that defendants conspired to grossly overcharge plaintiff for sauces it purchased from defendants.  Plaintiff operates restaurants that serve ramen noodles and related food products.  Plaintiff alleges that Defendant Isobe, who was one of its managerial employees, recommended that Plaintiff purchase sauces from B&B because it would save Plaintiff time and money, and Plaintiff purchased the sauces based on the recommendation.  Further, Plaintiff alleges that this was part of a scheme and conspiracy by Defendants to defraud Plaintiff by having Isobe persuade Plaintiff to outsource the manufacture of the sauces through misrepresentations regarding the economy of doing so, forming B&B to contract with Plaintiff to purchase the sauces, having Wakou manufacture the Sauces, having Wakou distribute the Sauces to Mutual, having B&B obtain the Sauces from Mutual without following FDA procedures, having B&B charge plaintiff substantially more than the fair market value of the Sauces, and then dividing the revenue among themselves.  

The causes of action are:

1)      FRAUD AND CONSPIRACY TO COMMIT FRAUD;

2)      UNJUST ENRICHMENT;

3)      UNFAIR COMPETITION;

4)      VIOLATION OF THE RACKETEER INFLUENCED CORRUPT ORGANIZATIONS ACT.

 

MP Positions

 

Moving party requests proposed orders filed 5/2/22, for proceeding with the noticed OSC hearings, for reasons including the following: 

 

·         Deponents RIVAS and MANUEL should show why they should not be held in contempt, for repeatedly failing to attend ordered depositions and failing to pay ordered monetary sanctions.

·         The deposition testimony is crucial to determine the scope of the conspiracy and all of the participants. 

·         A witness who is not a party to an action who has been subpoenaed to appear for his deposition may be held in contempt of  court for the disobedience of the subpoena. (CCP section 2020.240;  Lund v. Superior Court (1964) 61 Cal. 2d 698, 713.

·         The Court should again order deponents to appear for their deposition on a date convenient for Tatsu's counsel and to produce the Subpoenaed Records at the depositions.

·         Monetary sanctions should also be awarded against the deponents, plus $500 pursuant to CCP section 1992.

 

 

 

Tentative Ruling

 

Preliminarily, the Court inquires how moving party wishes to proceed, in light of prior minutes indicating that Plaintiff's counsel has been trying to personally serve Manuel Rivas and Juan Rivas with notices of continually rescheduled OSC hearings.

 

The unopposed motions are granted.

The Court will allow the opportunity for the deponents to show cause why they should not be held in contempt as prayed.

Below is an outline of applicable law:

 

CONTEMPT

 

Declaration Elements

 

To support an order to show cause re an indirect contempt (occurring outside the immediate presence of the court), a declaration must evidence, as jurisdictional requirements “(1) the making of the order, (2) knowledge of the order, (3) ability of the accused to render compliance, and (4) willful disobedience of the order.”  Application of  Ny (1962) 201 Cal. App. 2d 728, 731. Accord Board of Supervisors v. Sup. Ct. (1995) 33 Cal. App. 4th 1724, 1736. 

 

“The elements of proof necessary to support punishment for contempt are: (1) a valid court order, (2) the alleged  contemnor's knowledge of the order, and (3) noncompliance….  The order must be clear, specific, and unequivocal.”  Malek v. Koshak  (2012) 200 Cal.App.4th 1540, 1548-49.

 

Discovery

 

The “requirements for a valid contempt citation apply in discovery sanctions matters.”  In re de la Parra  (1986) 184 Cal.App.3d 139, 144.

 

Order Elements


“Punishment for contempt ‘can only rest upon clear, intentional violation of a specific, narrowly drawn order. Specificity is an essential prerequisite of a contempt citation.’”  Board of Supervisors v. Sup. Ct. (1995) 33 Cal. App. 4th 1724, 1737.

 

“‘[A] void order cannot be the basis for a valid contempt judgment.’”  Moore v. Kaufman  (2010) 189 Cal.App.4th 604, 616.

 

Procedure

 

A citee must be personally served with a charging affidavit and an order to show cause setting a future hearing time, or a court will lack jurisdiction to proceed.  Cedars-Sinai Imaging Medical Group v. Sup. Ct. (2000) 83 Cal. App. 4th 1281, 1286-87.

 

Generally, trial courts have discretion as to whether to punish any contempt.  Goold v. Sup. Ct. (2006) 145 Cal. App. 4th 1, 9.  See, also, e.g., CCP §§1211(a) (“may be punished….”);  1212 (“warrant … may be issued….”);  1991 (“Disobediance to a subpoena… may be punished as a contempt….”);  1993(a)(1) (“may issue a warrant” re deposition subpoena);  2020.240 (“deponent who disobeys a deposition subpoena . . . may be punished for contempt….”);  2023.030(e) (court "may" impose contempt sanction.)

 

“‘The power of the court to punish for contempt is indeed broad, but it is not unlimited. It is a drastic remedy, to be employed only when necessary to the proper and orderly conduct of judicial proceedings.’”  Chapman v. Sup. Ct. (1968) 261 Cal.App.2d 194, 201.