Whew!

The California Supreme Court recently decided that so long as its notice of appeal is timely filed, a suspended corporation can still pursue the appeal if it later revives its corporate powers.  The case, Bourhis v. Lord, involved a suspended corporation filing notices of appeal.  Several months later, the corporation revived its corporate powers.  In light of such subsequent revival, the Court of Appeal rejected motions to dismiss the corporation's appeals, and the Supreme Court affirmed.  "When that certificate [of revivor] is received, as one court put it, '[t]he legal rights of a suspended corporation are then revived, as an unconscious person is revived by artificial respiration.'"  Such revival "made the earlier, invalid but timely, notices of appeal valid and still timely." 

If the procedural posture brings to mind audible exclamations of relief, the back-story to this case heightens such emotions.  When the Supreme Court heard oral argument by special session in Southern California, the corporation's appellate counsel showed up for oral argument--in San Francisco!  Appellate counsel was anything but a neophyte, having argued dozens of appeals before, including many in the high court.  When he failed to show, the Court allowed opposing counsel to argue, then declared the case submitted.  Court staffers have reported that counsel's no-show is only the second one in institutional memory.

The decision, issued on March 4, was controlled by stare decisis.  Justice Joyce L. Kennard concurred and dissented, stating that while precedent dictated the outcome, it was time to abandon that precedent.  "[T]hose two decisions were wrong then, are wrong now, and should be overruled."  Justice Kennard asserted that in order for notices of appeal to invoke appellate court jurisdiction, such notices must be timely and valid when filed.

As for the corporation's appellate practitioner?  Although he had expressed confidence in the result, he must be feeling a little relieved these days.  Whew!

Fee Awards in Contract Actions

The California Supreme Court is reviewing the following question: "Is a party who obtains the dismissal of a contract action entirely on procedural grounds entitled to an award of attorney fees under Civil Code section 1717 as the prevailing party in an action on a contract?"  The case being reviewed is Kandy Kiss of California v. Tex-Ellent (2012) 209 Cal.App.4th 604.  Kandy Kiss follows other appellate court decisions awarding contractual attorney fees for procedural wins.  How much longer will such decisions be good law?

In Kandy Kiss, the defendant obtained dismissal of Kandy Kiss's suit for lack of subject matter jurisdiction.  Even though the battle would shift to federal court, the trial court awarded defendant $129,000 in contractual attorney fees.  Kandy Kiss appealed, arguing that since the merits of the dispute would proceed in federal court, there was no contract action winner yet.  But the Second District Court of Appeal concluded that "[defendant] should not be deprived of compensation for the fees it expended in defeating a separate action brought in an independent and separate forum."

Now the Supreme Court has granted review. 

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Wink, Wink

Have you handled an appeal (or for that matter a trial!), against a self-represented (non-lawyer) party?  Among appellate circles, this conjures images of briefs violating the Rules of Court and appellate procedure--such as single spaced submissions, failure to cite to the record, failure to affirmatively assign error and support it with citation to authority, word length violations and all too frequently, colorful ad hominem attacks.  But then, how would it be if a non-doctor performed surgery?  Too harsh?  To those that have "grappled" with such briefs, blood may still be the correct image--from hair torn out trying to determine where issues and argument begin and end.  Been there? 

I recall a fine trial lawyer that used to pop into my office every now and again and demand that I show him all the code provisions that apply only for the benefit of pro se litigants.  "They must be in there somewhere!" he would rant.  He was just venting--sort of.  I reminded him of the general principle that cases be decided on the merits, but he wasn't amused one little bit.  "Merit?!!" he would rage.

I can only wonder at his incredulity had I shown him this:  "That [Plaintiff] is representing himself does not except him from these standards.  Lack of legal counsel does not entitle a petitioner to special treatment (Wantuch v. Davis (1995) 32 Cal.App.4th 786, 795; Harding v. Collazo (1986) 177 Cal.App.3d 1044, 1055; Doran v. Dreyer (1956) 143 Cal.App.2d 289, 290); a pro se litigant is held to the same restrictive rules of procedure as an attorney (Nelson v. Gaunt (1981) 125 Cal.App.3d 623, 638-639).  'A doctrine generally requiring or permitting exceptional treatment of parties who represent themselves would lead to a quagmire in the trial courts, and would be unfair to the other parties to litigation.'  (Rappleyea v. Campbell (1994) 8 Cal.4th 975, 985.)"  (Wilmshurst v. Central Valley Regional Water Quality Control Board 2010 Cal.App.Unpub. LEXIS 9381, *8-9.)

Have you moved to strike a "chaotic" opening brief filed by an unrepresented appellant?  Any luck with that?  Did it cause you to wonder what would happen if you filed a brief like that?  Do the above citations just give you the impression of somebody winking?

Prevailing Party Attorney Fee Awards

This Friday, November 16th, I will be joined by the Honorable Justice Mark Simons (First Appellate District, Division 5) and Don Willenburg of Gordon & Rees, for a discussion on contractual attorney fee awards.  The panel presentation will take place during the Contra Costa County Bar Association's annual "MCLE Spectacular" in Walnut Creek.  Topics include fee awards as a matter of right, discretionary fee awards, the voluntary dismissal escape hatch and more.  Hope to see you there. 

In case you've been pondering a Civil Code section 1717 conundrum, here are the presentation materials.  And in case you are thinking of attending the entire event, here is the program guide.

Have a great week!

Fall Road Shows

For some reason, autumn seems to be the time for MCLE extravaganzas (assuming "MCLE" and "extravaganza" actually go together).  I will be participating in two such events. 

My first road show will be part of the Contra Costa County Bar Association’s annual “MCLE Spectacular” on November 16, 2012.  There, I will join Justice Mark Simons and attorney Don Willenburg in a two hour presentation, “Attorney Fees, Please!”  The program will cover a myriad of issues arising when contractual attorney fee awards are up for grabs, including prevailing party as a matter of right/discretion, fee awards for non-contract claims, and strategies for (legally) maximizing fee awards. 

My second road show will be part of the Association of Defense Counsel’s 53rd Annual Meeting on December 6, 2012.  There, Mr. Willenburg and I will provide a one hour presentation, “Disappearing Dollars,” on strategies and pitfalls in making/evaluating Code of Civil Procedure section 998 offers.

For those interested in reviewing 998 offer fundamentals, read on.  Hope I see you on the road! 

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Collateral Damage

Ordinarily, an order or judgment imposing sanctions in an amount of $5,000 or less is not appealable until entry of a final judgment in the action. (CCP §904.1(b).) But what if the sanctions arise from a discovery dispute between a party and her counsel and nonparty witness and his counsel at deposition?

That was the backdrop for a decision recently published by the First District Court of Appeal. In Diepenbrock v. Brown, 2012 Cal. App. LEXIS 896 (August 20, 2012), the court reversed a judgment imposing $5,000 in sanctions against plaintiff Claire Louise Diepenbrock and her attorney for unsuccessfully opposing a motion for protective order by a nonparty deponent – defendant Kyle Brown’s husband, Derek.

Diepenbrock’s attorney took the deposition of Derek Brown and asked questions that could have resulted in him testifying against his wife. Derek asserted the marital privilege under Evidence Code section 970 and refused to answer such questions. The deposition adjourned after the attorneys could not agree on the scope and applicability of the privilege.

Diepenbrock brought a motion to compel Derek to answer the questions. Derek responded by filing a motion for a protective order to preclude further questioning into such areas. Diepenbrock opposed the motion, contending an exception to the marital privilege applied. Both motions sought sanctions. (CCP §§2025.480(f), 2025.420(d), 2023.030(a).)    

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Help Line

I had oral argument in Ventura this week.  Ventura is home to Division Six of the Second Appellate District.  And the Presiding Justice there is Arthur Gilbert.  You know, the Arthur Gilbert whose column appears regularly in the Daily Journal.  Presiding Justice Gilbert along with Justices Kenneth R. Yegan and Steven Z. Perren make up the entirety of the Court in Ventura (there is a vacancy at the moment for the remaining seat).

The justices also make for a welcome panel during oral argument.  Presiding Justice Gilbert sets the tone, not only by the expected command presence, but also by his engaging and encouraging manner during arguments.  And if the moment calls for it, humor. 

During the first argument, as the attorney was answering a question about a case called Caldwell, a phone started ringing in the courtroom.  While all the lawyers in the gallery glanced nervously around, Justice Gilbert glanced down a couple of times, and then after the third ring, looked at the oralist at the podium and exclaimed, "Maybe this is your lifeline calling!"  Then he picked up the phone, said "hello" a couple of times, put it down and apologized to counsel for the interruption.

The oralist resumed his answer, but before he could finish, the phone started ringing again.  After the second ring, Justice Gilbert picked up the phone and fired into it:  "So, what does the Caldwell case stand for then?!" 

Much laughter followed.

After that, the rest of the arguments that morning went uninterrupted.  At least when it comes to phone calls.  Plenty of questions were asked of the lawyers, in a setting that encouraged dialog between the Court and counsel.  For appellate lawyers, that is a welcome environment.

If you have an oral argument nugget, let me know -- I'd like to hear it.

 

Ninth Circuit "Veterans"

As director and supervising attorney for the Hastings Appellate Project, I work with some terrific young legal talent and this year was no exception.  We invited six Hastings students to join the program this past academic year and handled three Ninth Circuit Appeals pro bono. 

In one appeal, 3Ls Mara Boundy and Kelly Matayoshi represented a client facing deportation.  Despite an immigration judge's favorable ruling below, the Board of Immigration Appeals reversed based on a controversial interpretation of amended federal immigration statutes and BIA/Ninth Circuit retroactivity decisions.  Mara and Kelly not only wrote two briefs on the merits addressing the tension in the Circuit's retroactivity decisions, they also wrote an amicus brief when the Ninth Circuit granted en banc review of a different subdivision of the same statutory scheme.  Mara argued our client's case in March before Circuit Judges Consuelo M. Callahan and Carlos T. Bea along with Judge Mark W. Bennett of the Northern District of Iowa, sitting by designation.  The case, while submitted for decision, is now in a holding pattern while the Ninth Circuit decides the en banc matter.  A favorable decision there almost certainly means one in our case as well -- but this one could go either way!

In another appeal, 3Ls Heidi Hansen Kalscheur and Nolan Shaw represented a client facing removal from the United States based on the Board of Immigration Appeals' decision that California's simple kidnapping statute is, categorically speaking, a crime of moral turpitude.  To say that this appeal was an esoteric brain teaser just barely describes the thorny interplay between the federal generic definition of moral turpitude and California decisional law on simple kidnapping.  Heidi and Nolan wrote two briefs on the merits and in May, Nolan argued the matter before Circuit Judges Stephen R. Reinhardt, N. Randy Smith, and Richard R. Clifton.  All present were treated to a rare bit of decorum when Judge Smith made his way around the entire courtroom prior to the start of the oral arguments, personally greeting lawyers, clients and audience alike.  We are cautiously optimistic that our client will obtain a favorable ruling!

Our final appeal this year was also our first victory among the three.  There, 3Ls Jenna Morton and Zachary Young (see photo, far right and third from the right respectively), represented a Nicaraguan national facing deportation after deserting from the Sandinistas over refusing to take place in human rights atrocities inflicted on the local citizenry.  The Justice Department's lawyers, in what can only be viewed as hardball tactics pursued against a pro se litigant/immigrant, sought summary dismissal of our client's appeal prior to our retention.  The Ninth Circuit rejected those tactics and we were appointed counsel.  Zachary and Jenna filed an opening brief identifying errors made by the Board of Immigration Appeals.  Instead of filing an opposition brief, the government reversed course, agreeing that a remand was required and moving for one!  The matter is now back before the BIA.

In a sign of these economic times, four of these six Ninth Circuit "vets" still do not have any concrete plans for after the bar exam.  This is strictly a down market phenomenon.  I am attaching their information here: Heidi Hansen KalscheurNolan ShawJenna Morton; and Zachary Young.  And not to leave out the rest of the team, here is information about Mara Boundy and Kelly Matayoshi.

D.O.A.

"Some appeals are filed to delay the inevitable.  This is such an appeal.  It is frivolous and was dead on arrival at the appellate courthouse." 

So begins the recent decision in Brown v. Wells Fargo Bank, NA (2012) 204 Cal.App.4th 1353.  There's no mistaking the reproach in those words, or these:  "After [the oral argument] calendar notice was sent . . . appellate counsel . . . asked that we dismiss the appeal.  We will deny the request.  We will affirm the judgment and refer the matter to the California State Bar for consideration of discipline."

As appellate counsel, we work hard at scrutinizing cases for that single strand that can turn trial court loss into victory.  We apply the forensic skills and appellate knowledge we've accumulated to the record.  And if we find the right thread and pull it, sometimes our efforts are rewarded with a reversal.  But what sets that kind of effort apart from the appeal in Brown?  

Brown provides some insights into a valid appeal and the line between vigorous advocacy and sanctionable conduct.  Although there are various terms of art involved, perhaps one way to describe the irreducible minimum is a "viable issue."  If you have that, then whether you win or lose, your appeal should fall on the proper side of the line.

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Road Show

In my recent blog entry, 998 Update: Avoiding the Wreckage, I mentioned that the CCP 998 decisions keep on coming.  Little did I know that even more were on the way.  Each new decision covers a wrinkle that could affect the outcome of a case in dramatic ways.  And so as lawyers, we have to constantly update our understanding of how the statute works.  It's actually not that easy -- the more one ponders the operation of the statute -- the more one sees additional potential complications.  All of which can make evaluating a 998 offer a stressful process, after all, our clients are relying upon our expertise, right?

In an attempt to share some accumulated knowledge and reduce that stress, Don Willenburg of Gordon & Rees and I are taking our 998 MCLE presentation on the road.  We are presenting in San Jose on April 4 in conjunction with the Santa Clara County Bar Association.  You can find the details here:  m360.sccba.com/event.aspx  And then on May 17, we will be presenting at the Contra Costa County Bar Association in Martinez: http://www.cccba.org/attorney/calendar/event.php?id=1457

Both programs are two hours long and will cover a spate of recent 998 decisions.  I hope you can join us and share some insights and war stories of your own.  In the meantime, here is a list of the more recent decisions that may cause you some, well, "excitement."

998 Decision Summaries

Hope to see you in San Jose or later, in Martinez.