Judge: Olivia Rosales, Case: 21NWCV00179, Date: 2022-09-01 Tentative Ruling

Case Number: 21NWCV00179    Hearing Date: September 1, 2022    Dept: SEC

WEST CENTRAL PRODUCE, INC. v. LAZAR

CASE NO.:  21NWCV00179

HEARING:  09/01/22

JUDGE:  OLIVIA ROSALES

ADD ON 2

TENTATIVE ORDER

WCP PARENT LLC’s Motion to Intervene is DENIED. 

Opposing Party to give Notice

Movant brings this motion to intervene under the mandatory provisions of CCP §387. “The court shall, upon timely application, permit a nonparty to intervene in the action or proceeding if either of the following conditions is satisfied: (A) A provision of law confers an unconditional right to intervene. (B) The person seeking intervention claims an interest relating to the property or transaction that is the subject of the action and that person is so situated that the disposition of the action may impair or impede that person’s ability to protect that interest, unless that person’s interest is adequately represented by one or more of the existing parties.” (CCP §387(d)(1).) Alternatively, Movant argues that permissive intervention is also appropriate where the nonparty “has an interest in the matter in litigation, or in the success of either of the parties, or an interest against both.” (CCP §387(d(2).)

It is undisputed that WCP Parent has an interest in the subject of this action. WCP Parent holds a security interest in all of Plaintiff’s assets.  

However, in Opposition, Defendants argue that WCP Parent’s Motion to Intervene is untimely. “The court granted Defendant’s good faith settlement motion on June 1, 2022 and determined the settlement funds payee was Pacific American Fish Co. WCP Parent LLC filed their unreasonably delayed Motion to Intervene on August 3, 2022. Because WCP Parent LLC’s Motion to Intervene is untimely, the motion should be denied.” (Opp. 2: 7-10.)

WCP Parent contends that it did not become aware that its interests were not adequately protected in this action until June 1, 2022, when this Court granted Defendants’ Motion for Order Approving Settlement Agreement and ordered that settlement funds be disbursed to Lien Claimant Pacific American Fish Co., Inc.

The settlement check was disbursed on July 8, 2022. The subject Motion was not filed until August 3, 2022. 

The Motion is DENIED. “[I]t is the general rule that a right to intervene should be asserted within a reasonable time and that the intervenor must not be guilty of an unreasonable delay after knowledge of the suit.” (Allen v. California Water & Tel. Co. (1947) 31 Cal.2d 104, 108.)

The timeliness determination is a discretionary call for the Court. Under the circumstances, the Motion is untimely. WCP Parent was aware of the suit by no later than June 1, 2022. On June 1, 2022, WCP Parent had notice that the good faith settlement had been approved and that Pacific American Fish Co. was designated as the settlement funds payee. Indeed, settlement funds had been disbursed prior to the date that the instant Motion was filed. No ex parte relief had been sought to expedite/specially set a hearing on the Motion to Intervene.

The Court finds that WCP Parent’s Motion is untimely, and that the parties would be unduly prejudiced by WCP Parent’s delayed intervention where settlement funds have already been disbursed.