Judge: Michelle Williams Court, Case: 21STCV35596, Date: 2022-09-22 Tentative Ruling

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Case Number: 21STCV35596    Hearing Date: September 22, 2022    Dept: 74

21STCV35596           ERNEST JOSEPH FRANCESCHI, JR. vs CHRISTOPHER BALDWIN

Specially Appearing Defendant Gloria Baldwin’s Motion and Motion to Quash for Lack of Personal Jurisdiction Directed to First Amended Complaint

TENTATIVE RULING:  Specially Appearing Defendant Gloria Baldwin’s Motion and Motion to Quash for Lack of Personal Jurisdiction Directed to First Amended Complaint is GRANTED.

Background

 

On September 28, 2021, Plaintiff Ernest Franceschi, Jr. filed this action against Defendants Christopher Baldwin and Gloria Baldwin. The operative First Amended Complaint, (“FAC”), added Defendant Ross Perkal and asserts causes of action for: (1) breach of the implied covenant of good faith and fair dealing; (2) tortious interference with contract; and (3) extortion. The FAC alleges Plaintiff, an attorney, represented Defendant Christopher Baldwin in two lawsuits pursuant to retainer agreements whereby the upfront costs were paid by Ralph Baldwin, Christopher Baldwin’s father. Plaintiff alleges Baldwin, at the encouragement of his mother Defendant Gloria Baldwin, refused to attend mediation or settle the lawsuits and Plaintiff withdrew as counsel. Plaintiff alleges Defendant Christopher Baldwin thereafter sent an email stating Plaintiff failed to provide receipts for money collected and demanded return of funds under threat of reporting Plaintiff to the IRS and the State Bar.

 

On December 30, 2021, the Court granted, in part, Plaintiff’s ex parte application granting Plaintiff leave to take the deposition of Gloria Baldwin on the limited issue of jurisdiction for purposes of opposing the motion to quash based upon a lack of personal jurisdiction.

On May 26, 2022, the Court issued an order sustaining Defendant’s demurer to the first and second causes of action without leave to amend and overruling the demurrer as to the third cause of action in the FAC.

 

On July 20, 2022, the Court issued an order granting Gloria Baldwin’s motion for protective order and continuing the hearing on the instant motion to September 22, 2022 to allow the parties to complete Gloria Baldwin’s deposition.

 

Motion

 

On April 26, 2022, Specially Appearing Defendant Gloria Baldwin filed the instant motion to quash for lack of personal jurisdiction arguing Plaintiff failed to properly serve her and there is an insufficient basis to exercise either general or specific jurisdiction over her.

 

In the reply filed on September 15, 2022, Gloria Baldwin indicates she no longer challenges service. (Supp. Reply at 2 n.2 (“Mrs. Baldwin no longer contests service in this matter.”).)

 

Opposition

 

On July 7, 2022, Plaintiff filed an opposition indicating Gloria Baldwin had not been deposed and therefore the motion should be denied.

 

On September 9, 2022, Plaintiff filed his supplemental opposition after Gloria Baldwin’s deposition.

 

Reply

 

On July 13, 2022, Gloria Baldwin filed her first reply arguing the Court lacked personal jurisdiction over her and Plaintiff failed to meet his burden.

 

On September 15, 2022, Gloria Baldwin filed her supplemental reply.

 

Plaintiff’s Evidentiary Objections

 

On September 16, 2022, Plaintiff filed objections to two portions of Gloria Baldwin’s deposition testimony.

 

Objection No. 1 is SUSTAINED as to the following “But I think that lady was telling him that she had to put your mother down, because we're going to check her credit. And that’s what he did. Q Okay. So he told her—this lady whose name is unknown, told him that he told you that he’s going to put you down as a co-tenant living in the apartment in order to check your credit; is that . . . A Yes, that’s what she told him.” (G. Baldwin Depo. at 44:3-15.)


Objection No. 2 is SUSTAINED.

 

Discussion

 

Standard

 

“A defendant . . . may serve and file a notice of motion for one or more of the following purposes:¿ (1) To quash service of summons on the ground of lack of jurisdiction of the court over him or her. . . .”¿(Code Civ. Proc. § 418.10(a).)¿

 

California courts are authorized to “exercise [personal] jurisdiction over parties on any basis not inconsistent with the Constitution of [California] or the United States.” (Civ. Proc. Code § 410.10.) “Personal jurisdiction may be either general or specific.” Vons Companies, Inc. v. Seabest Foods, Inc. (1996) 14 Cal.4th 434, 445.)

 

“When a nonresident defendant challenges personal jurisdiction, the plaintiff bears the burden of proof by a preponderance of the evidence to demonstrate the defendant has sufficient minimum contacts with the forum state to justify jurisdiction.” (Thomson v. Anderson (2003) 113 Cal.App.4th 258, 266.)

 

Plaintiff Failed to Demonstrate the Court has General Jurisdiction Over Gloria Baldwin

 

“When determining whether specific jurisdiction exists, courts consider the relationship among the defendant, the forum, and the litigation. A court may exercise specific jurisdiction over a nonresident defendant only if: (1) the defendant has purposefully availed himself or herself of forum benefits; (2) the controversy is related to or arises out of the defendant’s contacts with the forum; and (3) the assertion of personal jurisdiction would comport with fair play and substantial justice.” (Pavlovich v. Superior Court (2002) 29 Cal.4th 262, 269 (internal citations and quotations omitted).)

 

“A plaintiff opposing a defendant's motion to quash service has the burden of establishing factors No. (1) (the defendant's purposeful availment) and No. (2) (lawsuit relates to the defendant's contacts with state). If the plaintiff does so, the burden then shifts to the defendant to show factor No. (3), that the exercise of jurisdiction would be unreasonable.” (People ex rel. Harris v. Native Wholesale Supply Co. (2011) 196 Cal.App.4th 357, 362.)

 

In the supplemental opposition, Plaintiff contends “Gloria Baldwin has engaged in ‘substantial, continuous, and systematic’ contacts with California so as to subject her to general jurisdiction.” (Supp. Opp. at 2:22-23. See also Supp. Opp. at 7:22-24 (“A party opposing a motion to quash for lack of jurisdiction need only show that the defendant has engaged in ‘substantial, continuous, and systematic’ contacts with California so as to subject her to general jurisdiction.”).) Plaintiff does not address specific jurisdiction, though several of the cited authorities solely involved the exercise of specific jurisdiction. (See e.g. Burger King Corp. v. Rudzewicz (1985) 471 U.S. 462, 472; Simons v. Steverson (2001) 88 Cal.App.4th 693, 711.)

 

The only evidence provided by Plaintiff in support of the opposition relates to Gloria Baldwin’s involvement in Christopher Baldwin’s lease of a residential unit in Marina Del Rey, California and Gloria Baldwin’s guaranty of the lease. (Franceschi Decl. ¶¶ 2-4, Ex. 3-15.) This case does not involve the lease agreement, Christopher Baldwin’s tenancy, or Gloria Baldwin’s contractual obligations. Rather, Plaintiff alleges Gloria Baldwin “encouraged, directed, and took other actions to rendered aid and assistance to Christopher Baldwin” in connection with his sending an alleged extortionate email and failing to settle litigation. Accordingly, Plaintiff has failed to demonstrate this case “is related to or arises out of the defendant’s contacts with the forum” as required. (Pavlovich v. Superior Court (2002) 29 Cal.4th 262, 269 (internal citations and quotations omitted).) Accordingly, Plaintiff failed to meet his burden to establish specific jurisdiction. (Native Wholesale Supply, supra, 196 Cal.App.4th at 362.)

 

Plaintiff Failed to Demonstrate the Court has General Jurisdiction Over Gloria Baldwin

 

“A nonresident defendant may be subject to the general jurisdiction of the forum if his or her contacts in the forum state are ‘substantial . . . continuous and systematic.’” (Vons Companies, supra, 14 Cal.4th at 445 (quoting Perkins v. Benguet Mining Co. (1952) 342 U.S. 437, 445, 446.) In such instances, “it is not necessary that the specific cause of action alleged be connected with the defendant’s business relationship to the forum.” (Cornelison v. Chaney (1976) 16 Cal.3d 143, 147.)

 

Gloria Baldwin is a resident of New Mexico, has lived in New Mexico her entire life, is registered to vote in New Mexico, “do[es] not own or lease property in California, do[es] not maintain or possess any bank accounts in California, and do[es] not have a post office box or mailing address in California, . . . do[es] not conduct business in California and do[es] not have any employees or representatives in California” and has only made “very brief” trips to California within the last five years.” (G. Baldwin Decl. ¶¶ 2-20.) Gloria Baldwin “signed a guarantor application as part of [her] son’s initial leasing agreement to occupy the apartment [in Marina Del Rey, California]. [She] was not listed as an occupant on the lease agreement, never resided at the apartment with [her] son, and did not pay for his rent.” (Id. ¶ 18.)

 

As noted above, Plaintiff contends the Court may exercise general jurisdiction over Gloria Baldwin based upon her involvement in Christopher Baldwin’s lease. (Supp. Opp. at 3:1-7:25.) Plaintiff cites testimony that Gloria Baldwin gave Christopher Baldwin blanket authority to execute all lease related documents on her behalf, provides an “Onsite Transfer Application,” in which it was represented that Gloria Baldwin would live in the apartment,  and a series of lease agreements whereby Gloria Baldwin would serve as a guarantor. (Franceschi Decl. ¶¶ 2-4, Ex. 3-15.)

 

In her declaration, Gloria Baldwin stated she never lived in California and explained at her deposition that the representation that she would live in the apartment on the On Site Transfer Application was not authorized and she was not a co-tenant. (Leigh Reply Decl. Ex. A, G. Baldwin Depo. at 43:20-45:3, 47:12-13.) As noted by Defendant in reply, serving as a guarantor does not subject a non-state resident to general jurisdiction as a matter of law. (See Pennsylvania Health & Life Ins. Guaranty Assn. v. Superior Court (1994) 22 Cal.App.4th 477, 487 (“our Supreme Court has long recognized a guaranty relationship by itself is insufficient to establish jurisdiction.”) citing Sibley v. Superior Court (1976) 16 Cal.3d 442, 444; Aquila, Inc. v. Superior Court (2007) 148 Cal.App.4th 556, 572 (“a parent company's guarantee alone does not provide a basis for the exercise of jurisdiction.”).) The regularity of the lease agreement and guaranty do not support general jurisdiction. (See e.g. Helicopteros Nacionales de Colombia, S.A. v. Hall (1984) 466 U.S. 408, 418 (“mere purchases, even if occurring at regular intervals, are not enough to warrant a State’s assertion of in personam jurisdiction over a nonresident . . . in a cause of action not related to those purchase transactions.”).)

 

“For an individual, the paradigm forum for the exercise of general jurisdiction is the individual's domicile.” (Goodyear Dunlop Tires Operations, S.A. v. Brown (2011) 564 U.S. 915, 924. See also Halyard Health, Inc. v. Kimberly-Clark Corp. (2019) 43 Cal.App.5th 1062, 1070 (“A nonresident defendant is subject to the general jurisdiction of the forum if the defendant is essentially at home in the forum State.”).) “The standard for establishing general jurisdiction is fairly high, and requires that the defendant's contacts be of the sort that approximate physical presence.” (Elkman v. National States Ins. Co. (2009) 173 Cal.App.4th 1305, 1315 (citations omitted).) Plaintiff’s evidence does not establish Gloria Baldwin is essentially at home in California, such that the Court can exercise general jurisdiction over her.

 

The motion is GRANTED.