Judge: Virginia Keeny, Case: 22VECV00259, Date: 2022-11-21 Tentative Ruling
Case Number: 22VECV00259 Hearing Date: November 21, 2022 Dept: W
4467 WOODLEY
PARTNERS, LLC vs ALLIED INSULATION, INC., et al.
intervenor SETH
LICHTENSTEIN’S, AS TRUSTEE OF THE SAPPHIRE TRUST, MOTION TO INTERVENE
Date of Hearing: November
21, 2022 Trial Date: None
set.
Department: W Case No.: 22VECV00259
Moving Party: Seth
Lichtenstein, as Trustee of the Sapphire Trust
Responding Party: No
opposition
BACKGROUND
On February 22, 2022, Plaintiff 4467
Woodley Partners, LLC filed a complaint against Allied Insulation, Inc., All-Tech,
Inc., Boc Construction, Inc., B.Y. Marble, Inc., Byer Geotechnical Inc., Clark
Structural Inspections, Inc., Jaime Diaz D/B/A Greener Days Landscaping, Forma
Engineering, Inc., Robert D. Kilgour D/B/A Kilgour Plumbing, Premier Pool
Plastering, Rhino Steel, Inc., Speed Of Light, Inc., Tassio Temperature Control,
Inc., United Excavation Group Inc.,
Universal Engineering, Inc., and Jeff Warling D/B/A Warling and Associates
asserting causes of action for (1) Declaratory Relief; (2) Equitable Indemnity;
and (3) Comparative Contribution and Indemnity.
Plaintiff alleges it was the owner of
the property located at 4467 Woodley Avenue, Encino, California 91436 (the
“Property”) in the county of Los Angeles. Plaintiff acted as developer and
general contractor for the development of a luxury residential home on the
Property and hired the Defendants as subcontractors to provide services on the
property. Plaintiff further alleges it sold the property to The Sapphire Trust.
On October 19, 2021, Sapphire filed a demand in arbitration against Woodley
alleging violations of Civil Code §895 et seq., strict liability, negligence,
breach of implied warranty, breach of express warranty, breach of contract and
declaratory relief. Plaintiff contends this demand constitutes a proceeding for
which Woodley must be indemnified and now seeks indemnification from
Defendants.
[Tentative] Ruling
Intervenor
Seth Lichtenstein’s, as Trustee of The Sapphire Trust, Motion to Intervene is
GRANTED.
discussion
Intervenor Seth Lichtenstein, an
individual, as Trustee of The Sapphire Trust (“Sapphire Trust”) moves the court
for leave to intervene as a Plaintiff in this action pursuant to California
Code of Civil Procedure section 387. Sapphire Trust seeks to intervene because
it is the title holder to the improved real property at issue in the instant
litigation and is so situated that any judgment rendered in its absence would
unquestionably impair or impede Sapphire Trust’s ability to protect its
interest in the property. Alternatively, Sapphire Trust seeks to intervene as
Sapphire Trust has a clear “direct and immediate” interest in the litigation as
the title holder to the improved real property at issue in the instant litigation.
Code of Civil Procedure section 387
sets forth the rules for intervention by a third party in existing litigation.
Section 387(a) states in relevant part: “Upon timely application, any person,
who has an interest in the matter in litigation, or in the success of either of
the parties, or an interest against both, may intervene in the action or
proceeding.” Section 387(b) provides that “if the person seeking intervention
claims an interest relating to the property or transaction which is the subject
of the action and that person is so situated that the disposition of the action
may as a practical matter impair or impede the person's ability to protect that
interest, unless that person's interest is adequately represented by existing
parties, the court shall, upon timely application, permit that person to
intervene.”
In the case of intervention as a right,
“[t]he court shall, upon timely application, permit a nonparty to intervene in
the action or proceeding if… [either] [a] provision of law confers an
unconditional right to intervene[,] [or] [t]he 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)(A)-(B).)
In the case of permissive intervention,
“[t]he court may, upon timely application, permit a nonparty to intervene in
the action or proceeding if the person 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).)
First, the court must determine whether
the application to intervene is timely. (CCP §387.) Plaintiff first filed their
complaint on February 22, 2022. Seven months later, Sapphire Trust filed this
instant motion. Sapphire Trust had initially made an arbitration demand against
Plaintiff on October 19, 2021, which resulted in the instant action. (Slade
Decl. ¶2.) Since the filing of the complaint, no formal discovery, depositions,
or motion practice has taken place. (Slade Decl. ¶9.) The court finds there has
been no prejudice or inconvenience to the original parties or the court in
filing the motion.
Next, the court finds Sapphire Trust has
established that it has a valid interest in the property by a grant deed and
became aware of shortfalls in the construction of the Property improvements
shortly after purchasing the property from Plaintiff. As a result, any judgment
rendered in the nonparty's absence “may impair or impede that person's ability
to protect that interest.” (CCP §387(d)(1)(B).) Moreover, Sapphire Trust has
established a direct and immediate interest in the property and present
lawsuit. As noted by Sapphire Trust, Plaintiff filed this present action
against certain design professionals and trade contractors who performed or were
otherwise contributorily responsible for the defective work on the Property to
recover the damages, as alleged by Sapphire Trust in their Demand. As such,
there is a direct and immediate interest that will not enlarge the issues in
this case. (CCP §387(d)(2).)
Accordingly, the motion for leave to
intervene is GRANTED.