Judge: Michael E. Whitaker, Case: 22SMCV01313, Date: 2025-01-13 Tentative Ruling

Case Number: 22SMCV01313    Hearing Date: January 13, 2025    Dept: 207

TENTATIVE RULING

BACKGROUND

This case stems from a dispute over the remodel of Plaintiff and Cross-Defendant Glenn Vallecillos, M.D., Inc.’s (“Plaintiff”) surgical center. 

Plaintiff filed the original complaint on August 10, 2022, against Defendants Michael Keyes dba Global Ocean and Land Construction (“Keyes”) and Hudson Insurance Company (“Hudson”), alleging twelve causes of action for (1) breach of written contract; (2) unjust enrichment; (3) intentional misrepresentation; (4) negligent misrepresentation; (5) unfair business practices; (6) negligence; (7) declaratory relief; (8) disgorgement of money paid to unlicensed contractor; (9) recovery on contractors bond; (10) conversion; and (11) violation of Penal Code section 496.

On October 25, 2022, Defendant Hudson cross-complained for declaratory relief. 

On March 12, 2024, Keyes filed a Cross-Complaint against Plaintiff Glenn Vallecillos, M.D., Inc. and against Glenn Vallecillos, M.D., an individual (together, “Vallecillos”) alleging ten causes of action for (1) fraudulent inducement; (2) negligent misrepresentation; (3) breach of oral contract; (4) conversion; (5) intentional infliction of emotional distress; (6) reasonable value; (7) agreed price; (8) book account; (9) declaratory relief; and (10) unfair business practices. 

On November 1, 2024, the Court granted Hudson’s unopposed motion to deduct its $2,500 in attorneys’ fees from the $7,500 bond and deposit the remaining $5,000 with the Clerk of the Court.  Upon Hudson’s deposit of the remainder of the bond with the Clerk of the Court, Hudson now applies to be discharged and dismissed from the action.

Hudson’s application is unopposed.

ANALYSIS

Code of Civil Procedure section 386.5 provides:

Where the only relief sought against one of the defendants is the payment of a stated amount of money alleged to be wrongfully withheld, such defendant may, upon affidavit that he is a mere stakeholder with no interest in the amount or any portion thereof and that conflicting demands have been made upon him for the amount by parties to the action, upon notice to such parties, apply to the court for an order discharging him from liability and dismissing him from the action on his depositing with the clerk of the court the amount in dispute and the court may, in its discretion, make such order.

            Code of Civil Procedure section 386.6 provides:

A party to an action who follows the procedure set forth in Section 386 or 386.5 may insert in his motion, petition, complaint, or cross complaint a request for allowance of his costs and reasonable attorney fees incurred in such action. In ordering the discharge of such party, the court may, in its discretion, award such party his costs and reasonable attorney fees from the amount in dispute which has been deposited with the court. At the time of final judgment in the action the court may make such further provision for assumption of such costs and attorney fees by one or more of the adverse claimants as may appear proper.

            Code of Civil Procedure section 386, subdivision (f) provides:

After any such complaint or cross-complaint in interpleader has been filed, the court in which it is filed may enter its order restraining all parties to the action from instituting or further prosecuting any other proceeding in any court in this state affecting the rights and obligations as between the parties to the interpleader until further order of the court.

            In support of the application, Hudson provides the Declaration of Clark H. Cameron, which provides:

2. On March 10, 2019, HUDSON issued Bond No. 30032721 in favor of MICHAEL KEYES dba GLOBAL OCEAN AND LAND CONSTRUCTION as Bond Principal ("GLOBAL OCEAN" or "Principal'"), The bond was issued pursuant to the Business and Professions Code (Section 7000, et seq). The maximum liability for all non-homeowner claims is $7,500 as provided by the provisions of Business &, Professions Code Section 7071. 6(b).

3. On November 11, 2024, this Court ordered that HUDSON deposit the remainder of the bond with the Clerk of the Court (after deduction lor attorneys fees and costs and permitted HUDSON to seek discharge and dismissal upon compliance by way of Ex Parte application.

4. On November 18, 2024 HUDSON deposited the amount of $ 5,000.00 with the Clerk of the Court.

5. HUDSON has fulfilled all obligations required by the Bond and is entitled to discharge and dismissal pursuant to CCP § 386.5.

(Cameron Decl. ¶¶ 2-5.)

            Therefore, the Court’s November 1 Order found that Hudson is a mere stakeholder, as holder of the bond, with no interest in any amount thereof, and the Cameron declaration demonstrates that Hudson has now deposited the balance of the bond with the Clerk of the Court.

CONCLUSION AND ORDER

Therefore, the Court grants Hudson’s unopposed application in its entirety.  Hudson is discharged as stakeholder and is dismissed from this action.

Further, no party to this action may initiate another action against Hudson with respect to the parties’ rights and obligations to each other until further order of the Court.

Hudson shall provide notice of the Court’s ruling and file the notice with a proof of service forthwith. 

DATED:  January 13, 2025                                                    ___________________________

                                                                                          Michael E. Whitaker

                                                                                          Judge of the Superior Court