Judge: Michael Shultz, Case: 22CMCV00314, Date: 2024-02-01 Tentative Ruling

Case Number: 22CMCV00314    Hearing Date: February 1, 2024    Dept: A

22CMCV00314 Dwayne Hamilton v. Tanya Hamilton

Thursday, February 1, 2024, at 8:30 a.m.

 

[TENTATIVE] ORDER GRANTING PLAINTIFF’S MOTION FOR AN ORDER TO SHOW CAUSE RE CONTEMPT AGAINST DEFENDANT, TANYA HAMILTON

 

I.        BACKGROUND

       The complaint alleges that Defendant, Tanya Hamilton, assigned her interests in real property to Plaintiff in a probate matter settling the Estate of Margie Lee Hamilton (“Estate”). Prior to this order, the parties, who are siblings, entered into an informal verbal agreement wherein Defendant would collect the rental proceeds from tenants for deposit into the Estate’s account. Plaintiff alleges he discovered that Defendant misappropriated rental income and acted as de facto landlord/owner of the properties without Plaintiff’s knowledge. Plaintiff alleges claims for conversion and private nuisance.

       On October 31, 2022, Defendant filed a cross-complaint against Plaintiff alleging claims for fraud, intentional and negligent interference with prospective economic advantage, breach of contract, and for breach of implied-in-fact contract.

II.      ARGUMENTS

       Plaintiff argues that Defendant failed to comply with two orders to return rent in the amount of $20,000. After the Court appointed a receiver, Defendant refused to turn over the March 2023 rents of $4,800.

       In opposition, Defendant contends that there is no order requiring Defendant to turn over rent money from the rental properties at issue. The Court subsequently quashed the October 4, 2023, temporary restraining order (“TRO”) motion for preliminary injunction. Plaintiff did not cite appropriate authority that would permit this motion. Plaintiff is misleading the Court. Defendant contends she is “in the process” of paying the receiver the March 2023 rent. The Court should deny the request for imposition of sanctions.

       In reply, Plaintiff argues the motion is authorized by Civil Procedure, section 1211. Defendant violated two TROs during the period they were in effect as well as the order appointing receiver which remains effective.

III.    DISCUSSION

       “Disobedience of any lawful judgment, order, or process of the court” is punishable by contempt. The Court determines four issues in a contempt proceeding: "(1) the rendition of a valid order, (2) actual knowledge of the order, (3) ability to comply, and (4) willful disobedience." (Van v. LanguageLine Solutions (2017) 8 Cal.App.5th 73, 81.)As the proceeding is criminal in nature, guilt must be established beyond a reasonable doubt. (Conn v. Superior Court (1987) 196 Cal.App.3d 774, 784.)

       On October 4, 2022, the Court granted Plaintiff’s ex parte application for restraining order prohibiting Defendant from signing any rental agreements and ordering the return to Plaintiff, all rents collected from the real properties at issue and to return $14,400 in rent collected. The Court ordered Defendant to deposit all rents into Plaintiff’s personal bank account and retain records of deposits. (Mot. Ex. 1.)  

       However, the record reflects that on November 22, 2022, the Court held a hearing regarding the order on preliminary injunction which the Court denied. The Court also ordered the TRO quashed because of Plaintiff’s procedural error. (Defendant’s RJN., Ex. A.) Accordingly, Plaintiff has not established that the October 4 order was valid.

       Plaintiff applied for a second temporary injunction which the Hon. Sean Coen granted on December 29, 2022, directing Plaintiff to return additional rents. (Motion Ex. 6.) However, on January 13, 2023, this Court denied the request for a preliminary injunction finding that Plaintiff omitted facts. (Defendant’s RJN, Ex. B.)  The Court also found that the TRO expired. The order also reflects the Court’s finding that Defendant failed to follow the Court’s orders of October 4, 2022, and December 29, 2022. (Id.)

       Defendant’s counsel states his belief that the Court’s denials of Plaintiff’s two applications for preliminary injunction effectively quashed the December 29 TRO. (Scott Fridley Declaration, ¶ 8.) However, it appears that the December 29 TRO remained in effect until the order to show cause hearing re Preliminary Injunction. (Defendant’s RJN, Ex. D.) Defendant did not provide a declaration demonstrating Defendant’s inability to comply with the December 29 TRO, which required return of rent of $1,400, and $4,800, from the various rental properties as well as future rents.

       Defendant does not dispute that on March 6, 2023, the Court appointed a receiver to take control of the real property including the collection of the property’s income, profits, and rents. (Mot. Ex. 3.)  Defendant purportedly used the March 2023 rent to pay for property taxes. (Fridley Decl., ¶ 12, Exs. E and F.) While counsel states that Defendant has also been undergoing financial strain owing to the litigation of her father’s estate, Defendant did not provide her own declaration. (Id. ¶ 11.) Using the March rent money, Defendant purportedly made payments for insurance renewal, utility, and process service fees. (Id. Ex. G.), Counsel declares that Defendant has also been using her personal funds to make repairs on the rental properties. The amount of March rent owed is $1,246.20 (Ex. H).

 

IV.    CONCLUSION

       The Court finds that an order to show cause re contempt is warranted with respect to the December 29, 2022, and March 6, 2023, orders. Accordingly, and pursuant to Civil Procedure, section 1212,  the Court sets an Order to Show Cause Re Contempt for Click or tap here to enter text. at 8:30 a.m. in Department A of the Compton Courthouse.

       Plaintiff’s counsel is ordered to prepare the Order to Show Cause and serve the signed Order on Defendant in compliance with California Code of Civil Procedure section 1016-1017.  (Cedars Sinai Imaging Medical Group v. Superior Court (2000) 83 Cal. App. 4th 1281, 1286-1288.)