Judge: Malcolm Mackey, Case: 20STCV22167, Date: 2022-12-07 Tentative Ruling

Case Number: 20STCV22167    Hearing Date: December 7, 2022    Dept: 55

GMP ASSOCIATES, INC. v. RABIZADEH                                 20STCV22167

Hearing Date:  12/7/22,  Dept. 55

#9:   MOTION FOR LEAVE OF COURT TO INTERVENE.

Notice:  Okay

No Opposition

MP:  Proposed Intervenor US SPECIALTY INSURANCE COMPANY, on behalf of its insured HIGH DEFINITION GLASS (MOE 13).

RP:  

Summary

On 6/12/20, Plaintiff GMP ASSOCIATES, INC. filed a Complaint

On 6/15/20, Plaintiff filed a First Amended Complaint, alleging that the owner defendants agreed to pay for remodeling of their owned home, but failed to pay for a significant portion of the construction work.

The Plaintiff’s causes of action are:

1.      BREACH OF CONTRACT

2.      REASONABLE VALUE OF WORK

3.      FORECLOSURE OF MECHANICS LIEN.

On 8/3/20, Cross-Complaint was filed by defendants RACHEL RABIZADEH and SHAWN RABIZADEH against Plaintiff, alleging Plaintiff did remodeling having numerous construction defects.

On 8/24/22, defendants filed a motion seeking to amend defendants’ Cross-Complaint, to include alter ego allegations and a claim for Violations Penal Code Section 496(b).

On 4/27/21, a Cross-Complaint was filed by GMP ASSOCIATES, INC. and GABRIEL MARTIN PEREZ, against MOES 1 through 50, regarding getting indemnification pursuant to subcontractors’ agreements.

Requests for dismissals have been filed, including on 9/27/22 and 10/6/22.

MP Positions

Moving intervenor requests an order allowing intervention, on grounds including the following:

·         HIGH DEFINITION GLASS is a suspended corporation, which would be appearing through its insurer.   California Revenue & Taxation Code § 19719.

·         Insurance carriers and counsel retained by the carriers are excluded from penal sanctions, participating in such litigation via intervention. Kaufman and Broad Communities, Inc. (2006) 136 Cal.App.4th 212, 217-18.

·         Allowing intervention of US SPECIALTY INSURANCE COMPANY, one of HIGH DEFINITION GLASS’ liability insurers, is the only way the insurer’s direct and immediate interests can be protected.

Tentative Ruling

The unopposed motion is granted.

The proposed Complaint-In-Intervention attached to the motion may be served and filed as a separate document, within 10 days.

To counter a risk that a judgment will be entered by default, the insurance carrier is entitled to intervene in the underlying case, to contest its insured's fault, and damages.  Travelers Prop. Cas. Co. of Am. v. Engel Insulation, Inc. (2018) 29 Cal. App. 5th 830, 836.