The Department of Fair Employment and Housing (the Department) brought this action against defendant Harvey Ottovich
In this action, the Department alleged that Ottovich owned or managed an apartment building in Fremont, California. He posted an advertisement for an apartment available for rent, and real party in interest Diane Coleman
The complaint alleged Ottovich's actions violated Government Code section 12955, under which it is unlawful for the owner of a housing accommodation to discriminate against anyone based on, inter alia, familial status. In its prayer for relief, the Department asked the court to order Ottovich to pay damages to compensate real parties in interest "in an amount to be proven at trial," as well as treble damages pursuant to the Unruh Civil Rights Act (Civ. Code, § 51) "in no case less than four thousand dollars."
The record on appeal does not include the original complaint. Ottovich answered the complaint on September 25, 2008. The Department filed its first amended complaint on November 26, 2008. It appears that Ottovich did not answer the first amended complaint.
The Department propounded discovery requests to Ottovich. In November 2008, the trial court granted the Department's motion to compel responses to form interrogatories and requests for production of documents, awarded sanctions of $375, and advised Ottovich that "failure to comply with this Order or further discovery abuse may result in further sanctions, including monetary, evidentiary, issue, and terminating sanctions." In April 2009, the court granted the Department's motion to compel responses to its request for production of documents, and awarded sanctions of $250.
The Department moved for terminating sanctions in June 2009 on the ground that Ottovich had committed discovery abuses. In support of the motion, the Department submitted evidence that Ottovich had failed to comply with discovery requests, had violated the court's orders compelling discovery, and had been found in contempt for failing to attend a case management conference. The court granted the motion, ordering: "Defendant's Answer filed September 25, 2008 is STRICKEN, and Defendant Harvey Ottovich is DEFAULTED from this action."
The Department filed a statement of damages (§ 585) in September 2009, claiming $55,000 in damages for emotional distress, trebled pursuant to the Unruh Civil Rights Act ($165,000 total), $5,588.53 for the costs of hotel stays, restaurant meals, and storage, trebled pursuant to the Unruh Civil Rights Act ($16,765.59 total), and $100,000 in punitive damages. After a default prove-up hearing in October 2009, the trial court awarded total damages of $242,354.12 and ordered judgment entered accordingly.
Ottovich moved to vacate the judgment in December 2010. As he argued, section 425.11 requires a plaintiff in an action for personal injury or wrongful death to serve a statement of damages on a defendant before a default may be taken. (§ 425.11, subd. (c).) Because the Department had failed to do so, he contended, the default judgment was void. The Department did not oppose the motion, and the trial court granted it on January 20, 2011, ruling: "The Court HEREBY VACATES the October 13, 2009 Default Judgment ... and the portion of the July 23, 2009 Order Entering Default against Defendant pursuant to CCP § 2023.030(d)."
Ottovich did not seek to reinstate his original answer or file an answer to the first amended complaint. In July 2011, the Department moved for summary judgment, arguing that Ottovich's failure to answer the allegations of the complaint acted as a judicial admission of the truth of those allegations. (§ 431.20, subd. (a).) In his opposition to the motion, Ottovich argued
Ottovich moved for reconsideration of the order granting summary judgment. He argued that, as a matter of law, his answer to the complaint was reinstated when the default judgment was vacated, and, in the alternative, that his attorney's mistake in believing the answer would be considered reinstated was the result of mistake or excusable neglect. The motion included a declaration of Ottovich's attorney stating that by the time the trial court vacated the default judgment in January 2011, he had forgotten that no answer to the first amended complaint had been filed, that he believed the court's order necessarily reinstated the previously filed answer, and that he would have filed an answer if he had believed it was necessary. The trial court denied the motion for reconsideration, ruling that Ottovich had not shown any new or different facts, circumstances, or law, and—even if such facts existed—had not shown that he could not have brought them to the court's attention before the initial order granting summary judgment in the exercise of reasonable diligence.
A jury trial was held on the amount of the real parties in interest's damages. The jury found the damages totaled $8,705, and judgment was entered accordingly.
Ottovich contends that when the trial court vacated his default, it also implicitly reinstated his answer. The order granting terminating sanctions read in its entirety: "The tentative ruling is affirmed as follows: Plaintiff's unopposed Motion for Terminating Sanctions is GRANTED, based on Defendant's failure to comply with, inter alia, the Court's Orders entered November 26, 2008 and April 16, 2009. Defendant's Answer filed September 25, 2008 is STRICKEN, and Defendant Harvey Ottovich is DEFAULTED from this action." We agree with the trial court that its January 20, 2011 order vacating the default judgment, "and the portion of the July 23, 2009 Order Entering Default against Defendant" by its terms left intact the portion of the earlier order striking Ottovich's answer.
Section 2023.030 authorizes a court to impose sanctions for misuse of the discovery process. In addition to authorizing monetary sanctions and issue sanctions (§ 2023.030, subds. (a) & (b)), it provides in part: "(d) The court may impose a terminating sanction by one of the following orders: [¶] (1) An order striking out the pleadings or parts of the pleadings of any party engaging in the misuse of the discovery process. [¶] ... [¶] (4) An order rendering a judgment by default against that party."
Here, the Department did not file a statement of damages before default judgment was entered; recognizing the impropriety of this procedure, the trial court later vacated the default while leaving intact its order striking Ottovich's answer. The question before us is whether the trial court was required to reinstate the answer as a matter of law.
Ottovich contends this question is governed by Matera, supra, 145 Cal.App.4th 44. As a sanction for abusive discovery practices, the trial court there ordered the defendants' answer stricken, entered their defaults, held a prove-up hearing, and entered a default judgment. (Id. at pp. 52-53.) On appeal, the defendants argued that the default judgment was void because plaintiffs had failed to provide actual notice of the amount of damages they sought a reasonable time before the entry of defaults. (Id. at p. 59.) The plaintiffs did not allege any amount of damages in their complaint, and first served their statement of damages two days before the hearing on the motion for terminating sanctions and entry of default. (Ibid.) The Court of Appeal concluded this short notice did not comport with due process, and the default judgment was therefore void. (Id. at pp. 60-62.) The Matera court went on: "The striking of a defendant's answer as a terminating sanction leads inexorably to the entry of default. [Citations.] To vacate the defaults without reinstating defendants' answer would be an empty gesture. We therefore conclude that the order striking the answer must be vacated and the answer reinstated." (Id. at p. 62.)
The Department distinguishes the rule of Matera, arguing that, in practice, a default "need not follow immediately upon the heels of the striking of an
In Johnson, as a sanction for discovery abuses, the trial court struck the defendant's answer except as to the issue of damages. (Johnson, supra, 28 Cal.App.4th at. p. 621 & fn. 8.) The court then granted summary adjudication of the defendant's liability on each cause of action, and a jury trial on the issue of damages was held. (Id. at pp. 621-622.) The complaint had sought damages "`in excess of Twenty-Five Thousand Dollars [] according to proof'"; the jury awarded $4.9 million in damages. (Id. at pp. 617, 622.) Relying on Greenup, the defendant contended that, rather than compelling it to litigate the damages issue, the trial court should have ordered a default prove-up hearing and limited the plaintiffs' recovery to the $25,000 jurisdictional limit pleaded in the complaint. (Id. at p. 623.)
The Court of Appeal rejected this contention. It found Greenup "inapt" because the trial court there not only struck the answer but also entered a default judgment in an amount exceeding the prayer in the complaint. The Supreme Court granted review "`to consider whether a default judgment entered as a discovery sanction is excepted from the general rule that "if there be no answer" filed, the plaintiff's relief "cannot exceed that ... demanded in [the] complaint...."'" (Johnson, supra, 28 Cal.App.4th at p. 623, quoting Greenup, supra, 42 Cal.3d at p. 824.) The rule of Greenup, the Johnson court concluded, was limited to cases of default. (Johnson, supra, 28 Cal.App.4th at pp. 623-624.) The court went on to note that the defendant "was in no different position than any defendant who admits liability, but disputes damages; who answers the allegations concerning damages, but fails to answer the liability allegations; or who has suffered an adverse summary adjudication of the issue of liability. In none of those instances is there a default—or a default prove-up hearing. Here, where there was no entry of default, a default prove-up hearing would have been not only inappropriate, but unauthorized. The court could not have excluded [the defendant] from proceedings to determine plaintiff's damages. It therefore correctly conducted an adversarial jury trial on the only issue remaining, i.e., the extent of plaintiffs' damages." (Id. at pp. 624-625.)
The procedural posture of this case lies somewhere between Johnson and Matera. The trial court's January 20, 2011 order vacating the default left intact the portion of the order striking Ottovich's answer to the complaint (not, as in Johnson, only a portion of the answer). But, as in Johnson, the court also kept alive the issue of damages, and Ottovich was able to defend
The judgment is affirmed.
Ruvolo, P. J., and Reardon, J., concurred.
In a petition for rehearing, Ottovich argues that under the recently decided case of Paramount Petroleum Corp. v. Superior Court (2014) 227 Cal.App.4th 226, it was impermissible for the trial court to grant summary judgment and enter an interlocutory judgment on the issue of liability only, while leaving the amount of damages to be determined later. By failing to raise this issue in either the trial court or his briefs on appeal, Ottovich has waived it. (Hepner v. Franchise Tax Bd. (1997) 52 Cal.App.4th 1475, 1486 [61 Cal.Rptr.2d 341] ["Points not raised in the trial court will not be considered on appeal."]; Akins v. State of California (1998) 61 Cal.App.4th 1, 38-39, fn. 34 [71 Cal.Rptr.2d 314] ["Reviewing courts need not consider points raised for the first time in a petition for rehearing."]) In any case, other procedural mechanisms would have been available to establish Ottovich's liability. Our conclusion that the trial court was not required to reinstate the answer does not rest on the propriety of the mechanism the trial court used, but on the fact that Ottovich was able to protect his interests by appearing in court and contesting the amount of damages.