Judge: William A. Crowfoot, Case: BC723462, Date: 2023-01-13 Tentative Ruling
Case Number: BC723462 Hearing Date: January 13, 2023 Dept: 27
SUPERIOR COURT OF THE STATE OF
CALIFORNIA
FOR THE COUNTY OF LOS ANGELES - CENTRAL
DISTRICT
Plaintiffs, vs. ERIK
LIMON, et al., Defendants. |
) ) ) ) ) ) ) ) ) ) ) ) ) |
[TENTATIVE]
ORDER RE: INTERVENOR STATE FARM’S MOTION FOR SUMMARY JUDGMENT; DEFENDANT
JENEVIEVE B. HEGEDUS’S JOINDER TO STATE FARM’S MOTION FOR SUMMARY JUDGMENT Dept.
27 1:30
p.m. January
13, 2023 |
I. INTRODUCTION
On September 27, 2018, plaintiffs
Michael Golden and Samantha Mondrosch (collectively, “Plaintiffs”) filed this
wrongful death action against defendants Erik Limon (“Limon”) and Jenevieve B.
Hegedus (“Hegedus”) arising from the death of Tracy E. Adams (“Decedent”).
Plaintiffs allege that Decedent was riding her bicycle on September 6, 2017,
when Limon hit her with his vehicle and drove away without rendering
assistance. Plaintiffs allege that Hegedus then hit Decedent a second time with
her vehicle and also drove away without rendering assistance.
On January 18, 2019, Hegedus filed an
answer to the Complaint.
On January 13, 2020, Limon filed an
answer to the Complaint and a cross-complaint against Hegedus.
On July 1, 2020, Plaintiffs filed a
request to dismiss Limon from the action with prejudice. The dismissal was entered on July 14, 2020.
On June 18, 2021, Hegedus filed,
without leave of court, a cross-complaint for indemnity, apportionment of
fault, and declaratory relief against Limon.
On March 23, 2022, Hegedus filed, with
leave of court, a First Amended Answer (“FAA”).
The FAA asserts an affirmative defense of accord and satisfaction.
On April 7, 2022, the Court granted an
ex parte application by State Farm Mutual Automobile Insurance Company (“State
Farm”) to intervene on Hegedus’s behalf.
On May 23, 2022, the Court signed an
order granting Limon’s application for determination of good faith
settlement.
On September 20, 2022, State Farm filed
this motion for summary judgment or, in the alternative, summary adjudication,
on the grounds that they already reached a settlement with Plaintiffs. On the same day, Hegedus filed a joinder to
State Farm’s summary judgment motion and a separate statement.
On November 9, 2022, Plaintiffs filed
their opposition to the motion and joinder. On November 14, 2022, Plaintiffs filed their
evidentiary objections.
On December 2, 2022, State Farm filed
its reply papers and evidentiary objections.
State Farm also filed a declaration from Hegedus’s father, James Hegedus.
On December 6, 2022, Plaintiffs filed a
supplemental declaration.
On December 9, 2022, the Court heard
oral argument from the parties and continued the hearing to January 13,
2023. The Court ordered the parties to
lodge a copy of the court reporter’s transcript of the December 9, 2022 hearing
by December 29, 2022.
II. FACTUAL
BACKGROUND
On or about
September 28, 2017, a claim was reported to State Farm relating to the death of
Decedent involving an automobile driven by Hegedus. (State Farm’s Undisputed Material Fact
(“UMF”) No. 1.) The claim was reported
by the Gurovich Law Group, who were the initial attorneys for Decedent’s estate
and Plaintiffs as Decedent’s heirs. (UMF
No. 2.) At the time of the accident,
Hegedus was driving a 2011 Mitsubishi Galant that was insured by State Farm
through an automobile policy issued to Ali H. Farahat and Linda A. Otieno. (UMF No. 3.)
At the time of the accident, the State Farm policy had a $30,000 policy
limit. (UMF No. 3.) Over the next many months, State Farm
repeatedly tried to obtain information from the named insureds and Hegedus
including the facts of the loss and why Hegedus had the vehicle. (UMF No. 4.)
This was made difficult by the fact that Hegedus was in jail and that
the named insured disclaimed any knowledge.
(UMF No. 4.) In mid-November
2017, State Farm was advised of new counsel for the claimants, who were now
being represented by the Law Offices of David Feldman.
After
completing a coverage investigation, on April 12, 2018, State Farm offered its
policy limits to Plaintiffs to settle the claim against Hegedus. (UMF No. 6.)
Plaintiffs’ counsel, David Feldman, rejected the policy limits offer,
indicating that he planned on filing suit to determine whether Hegedus was in
the course and scope of employment at the time of the accident. (UMF No. 6.)
As of April 2018, State Farm still had not reached Hegedus. (UMF No. 6.)
On April 26, 2018, during a status call
between State Farm and Plaintiffs’ counsel, counsel indicated that suit had not
yet been filed, Hegedus was released from jail for time served, and that a
complaint would likely be served on her by publication. (UMF No. 8.)
On September 10, 2018, State Farm again offered the policy limits to
Plaintiffs. (UMF No. 9.)
By letter dated February 4, 2020,
Plaintiffs’ counsel made a policy limits settlement demand. (UMF No. 12.)
The demand conditioned the offer, requiring the submission of the
Declaration pages of State Farm and Interinsurance Exchange of the Automobile
Club (“AAA”) policies, a proposed Release of all wrongful death claims, and a
declaration from Hegedus attesting that she was not in the scope of her
employment or agency or in a joint venture at the time of the accident, and
that she had no other insurance that would defend and indemnify her for the
wrongful death claims. (UMF No.
12.) The demand indicated the acceptance
must be made and documents delivered by 5:00 p.m., March 5, 2020. (UMF No. 12.)
On February 12, 2020, defense counsel Stephen
Pasarow and Katherine L. Curtis from Knapp Petersen Clarke (“KPC”) wrote to
Hegedus at her parents’ home address to advise her of Plaintiffs’ policy limits
demand and State Farm’s intent to accept the offer on her behalf. (UMF No. 13.)
Defense counsel requested Hegedus’s updated contact information. (UMF No. 13.)
Defense counsel also made several telephone calls to Hegedus at her last
known telephone number but she did not answer the calls or messages that were
left. (UMF No. 14.)
Defense counsel enlisted the assistance
of a private investigator on February 27, 2020, to obtain Hegedus’s signature
on the declaration required under the February 4, 2020 policy limits demand. (UMF No. 15.)
Defense counsel responded to the February 4, 2020, policy limits demand
at 4:03 p.m. on March 5, 2020. Defense counsel submitted copies of State Farm’s
and AAA’s Declaration pages and a proposed Release. (UMF No. 16.)
Defense counsel also requested a 30-day extension to submit Hegedus’s
declaration because she could not be located.
(UMF No. 16.)
On March 10, 2020, Plaintiffs’ counsel
refused to provide a 30-day extension and took the position that the acceptance
letter was a counteroffer because the proposed release included Hegedus’s
family members and her insurers as releasees, and because it included
affidavits made under Probate Code section 13101. (UMF No. 18.)
On March 11, 2020, defense counsel indicated to Plaintiffs’ counsel that
the signed declaration from Hegedus had been received. (UMF No. 19.)
A copy of the declaration was not transmitted to Plaintiff’s counsel
until March 13, 2020.
III. LEGAL
STANDARDS
Summary judgment is proper “if all the
papers submitted show that there is no triable issue as to any material fact
and that the moving party is entitled to judgment as a matter of law.” (Code Civ. Proc., §437c, subd. (c).) Similarly, a party may move for summary
adjudication as to one or more causes of action within an action, one or more
affirmative defenses, one or more claims for damages, or one or more issues of
duty, if the party contends that the cause of action has no merit, that there
is no affirmative defense to the cause of action, that there is no merit to an
affirmative defense as to any cause of action, that there is no merit to a
claim for damages, as specified in Section 3294 of the Civil Code, or that one
or more defendants either owed or did not owe a duty to the plaintiff or
plaintiffs. (Code Civ. Proc., § 437c,
subd. (f)) A motion for summary
adjudication shall be granted only if it completely disposes of a cause of
action, an affirmative defense, a claim for damages, or an issue of duty, and
will proceed in all procedural respects as a summary judgment motion. (Code Civ. Proc., § 437c, subd. (f)(2).)
Where a defendant seeks summary
judgment or adjudication, the defendant must show that either “one or more
elements of the cause of action, even if not separately pleaded, cannot be
established, or that there is a complete defense to that cause of action.” (Code Civ. Proc., §437c, subd. (p)(2).) Once
the defendant meets this burden, the burden shifts to the plaintiff to show
that a “triable issue of one or more material facts exists as to that cause of
action or defense thereto.” (Union
Bank v. Superior Court (1995) 31 Cal.App.4th 574, 583.) Until the moving party has discharged its
burden of proof, the opposing party has no burden to come forward with any
evidence. Once the moving party has discharged its burden as to a particular
claim, however, the opposing party may defeat the motion by producing evidence
showing that a triable issue of one or more material facts exists as to that
cause of action. (Code Civ. Proc., §437c,
subd. (p)(2).)
The court strictly construes the moving
party's supporting evidence while the opposing party’s evidence is liberally
construed. Doubts as to the propriety of
the motion should be resolved against granting the motion. (D’Amico v. Board of Medical Examiners
(1974) 11 Cal.3d 1, 20.) The court does
not evaluate the credibility of testimony. (Binder v. Aetna Life Ins. Co. (1999)
75 Cal. App. 4th 832, 840.)
The court applies the three-step
analysis to motions for summary judgment or adjudication: (1) identify the
issues framed by the pleading, (2) determine whether the moving party
established facts which negate the opponents’ claim, (3) if a defendant meets
its threshold burden of persuasion and the burden shifts, determine whether the
opposing party has controverted those facts with admissible evidence. (Torres v. Reardon (1992) 3 Cal.App.4th
831, 836.)
IV. EVIDENTIARY
OBJECTIONS
In light of the declaration of James
Hegedus, which provides the appropriate foundation to authenticate Hegedus’s
declaration signed on March 8, 2020, Plaintiffs’ untimely evidentiary objection
to the declaration is OVERRULED.
Pursuant to Code of Civil Procedure
section 437c(q), the Court rules on State Farm’s objections to evidence the
Court found material to its disposition of the motion as follows:
Objection Nos. 1-4, Overruled.
V. REQUEST
FOR JUDICIAL NOTICE
State
Farm’s request for judicial notice of their answer filed on April 7, 2022 is
GRANTED. Defendant’s request for
judicial notice of her answer filed on March 23, 2022 is GRANTED.
VI. DISCUSSION
An accord is “an agreement to accept,
in extinction of an obligation, something different from or less than that
which the person agreeing to accept is entitled.” (Civ. Code, § 1521.) Acceptance “by the creditor, of the
consideration of an accord extinguishes the obligation, and is called
satisfaction.” (Civ. Code, § 1523.)
The essential elements of a valid
contract require parties capable of contracting, their consent, a lawful
object, and consideration. (Civ. Code, §
1550.) Consent must be free, mutual, and
communicated by each to the other. (Civ. Code, § 1565.) Performance of conditions of a proposal, or
the acceptance of the consideration offered with a proposal is an acceptance of
the proposal. (Civ. Code, § 1584.) A valid acceptance “must be absolute and
unqualified” or must include in itself an acceptance of that character which
the proposer can separate from the rest; a “qualified acceptance” constitutes a
rejection terminating the offer because it is a new proposal or counteroffer
which must be accepted by the former offeror now turned offeree before a
binding contract results. (Civ. Code, § 1585;
Wristen v. Bowles, 82 Cal. 84, 87, Meux v. Hogue, 91 Cal. 442,
448; Niles v. Hancock, 140 Cal. 157, 161; King v. Stanley, 32
Cal.2d 584, 588; Smith v. Holmwood, 231 Cal.App.2d 549, 552.
State Farm argues that Plaintiffs have
already settled their claims against Hegedus for policy limits in March 2020
and that Hegedus accepted Plaintiff’s policy limits offer when defense counsel sent
a letter on March 5, 2020. The letter,
attached as Exhibit 11 to the Declaration of Cindy Morrow and included in State
Farm’s Appendix of Evidence says:
On behalf of our client, we have
authority from State Farm and from [Hegedus’s] other insurer, Interinsurance
Exchange of the Automobile Club (“AAA”), to accept the demand set forth in your
letter of February 4, 2020, and by this letter do so.
Your letter provides that with the acceptance
of the demand, we are to provide a release, the declaration pages for the
policies and a declaration from our client.
We enclose a release and both policy declaration pages. We have undertaken to locate our client so
the requested declaration referenced in the demand can be provided. Please note, we are having difficulty
contacting [Hegedus] and have enlisted the assistance of an investigator. As such we respectfully request thirty days
(30) from the date of this letter to provide you with our client’s
declaration. It is our intention to
comply with the terms of the demand.
We anticipate that the release
agreement will provide protection for the persons and entities insured under
the State Farm and AAA policies. We also
note the involvement of [Limon], who has cross-complained against our
client. We anticipate including standard
section 877 good faith settlement wording in the settlement agreement which is
not inconsistent with the terms of the demand, and consistent with our client’s
complete protection promised in your settlement demand. We do not intend by these provisions to
reject or present a counter off, but simply clarify settlement terms consistent
with your demand letter.
We will be in touch regarding the
status of our client’s declaration, and look forward to the amicable resolution
of this matter.
Please contact our office upon receipt
of this letter to discuss our request for an extension to provide your office
with our client’s signed declaration.
(Appendix, Ex. 11.)
On March 10, 2020, Plaintiffs’ counsel
refused to accept the “new terms”, which he specifically identified as: (1) providing
a 30-day extension to provide a signed declaration from Hegedus, (2) adding
Hegedus’s family members as releasees and AAA and State Farm as parties to the
Release, (3) requiring affidavits under Probate Code section 13101 as a
condition of settlement. (Appendix, Ex.
5.)
State Farm argues that these “new
terms” are not a “qualified acceptance” and that it substantially complied with
Plaintiff’s policy limits demand. First,
State Farm contends that the proposed written release is not inconsistent with
the terms and conditions of Plaintiffs’ settlement offer because Plaintiffs’
offer anticipated that there would be a release of wrongful death claims
against “your insured(s) and their heirs only, (but no other persons or
entities)”. (Appendix, Ex. 1.) State Farm’s insureds include Linda A. Otieno,
Ali H. Farat, and Hegedus, while Hegedus is the named insured under the AAA
policy. Therefore, including Austin
Hegedus, BJN Hegedus, and James Hegedus as releasees was not inconsistent with
the settlement offer, in State Farm’s view, as these individuals were identified
on the declaration pages of AAA’s policy.
Second, State Farm argues that the
affidavits under Probate Code section 13101 are required by Los Angeles
Superior Court Rule, rule 4.72, because the settlement funds would be
distributed to Plaintiffs, who are Decedent’s successors-in-interest for
purposes of the survivorship claim, and therefore do not constitute a
“counteroffer.”
Third, State Farm argues that Hegedus
eventually provided a signed declaration, and since the March 5, 2020, deadline
was arbitrary, her attorney’s request for a 30-day extension was a reasonable
request for additional time, not a counteroffer. State Farm cites to cases which hold that
performance within a reasonable time after the due date stated in the contract
constitutes compliance with the contract.
At the hearing, State Farm dissected the interactions between Limon’s
counsel and Plaintiffs’ counsel, pointing out that the release and declaration
initially provided by Limon had to be revised, and there was an extension of
their deadline to accept the settlement offer in order to complete those revisions,
which means that the release and declaration requested from Hegedus were not conditions
to accepting the offer. (Hrg. Transcript,
5:3-6:7.)
Even if State Farm (and Hegedus)
shifted the burden of production to Plaintiffs, in opposition, Plaintiffs argue
that triable issues of material fact exist due to Hegedus’s deemed
admissions. After Hegedus failed to
serve responses on time, upon Plaintiffs’ motion, Hegedus was deemed to have
admitted that her counsel’s letter sent on March 5, 2020 was a counteroffer,
that she never reached an agreement with Plaintiff, and that she had no facts
to support her affirmative defense of accord.
(Plaintiffs’ Appendix of Evidence, Ex. 3
RFA Nos. 17, 18, 20-22, 24.)
State
Farm cites to two cases which it contends allow the Court to exercise its
discretion to determine the scope and effect of these admissions by admitting
contradictory evidence: (1) Milton v. Montgomery Ward & Co., Inc.
(1973) 33 Cal.App.3d 133, 138, and (2) Fredericks v. Filbert Co. (1987)
189 Cal. App. 3d 272, 277–78. The cases
cited by State Farm regarding the court’s discretion to determine the scope and
effect of the admission are procedurally inapposite and support the conclusion
that the court has the discretion to determine the scope and effect of the
admission by allowing the admitting party introduce additional evidence at
trial. Therefore, the trial court has
the discretion to allow State Farm to introduce additional evidence at trial to
persuade the factfinder that the deemed admisisons are not relevant or to limit
the effect of the admissions. On a
motion for summary judgment, the court’s role is limited to issue finding, not
issue determination.
VI. CONCLUSION
In light of
the foregoing, State Farm and Hegedus’s motions for summary judgment/adjudication
are DENIED.
Moving party to give notice.
Parties who
intend to submit on this tentative must send an email to the Court at SSCDEPT27@lacourt.org
indicating intention to submit on the tentative as directed by the
instructions provided on the court’s website at www.lacourt.org. Please be advised that if you submit on the
tentative and elect not to appear at the hearing, the opposing party may
nevertheless appear at the hearing and argue the matter. Unless you receive a submission from all
other parties in the matter, you should assume that others might appear at the
hearing to argue. If the Court does not
receive emails from the parties indicating submission on this tentative ruling
and there are no appearances at the hearing, the Court may, at its discretion,
adopt the tentative as the final order or place the motion off calendar.