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WILLIFORD v. SEYMORE, F061586. (2012)

Court: Court of Appeals of California Number: incaco20120118057 Visitors: 18
Filed: Jan. 18, 2012
Latest Update: Jan. 18, 2012
Summary: NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS OPINION POOCHIGIAN, J. INTRODUCTION Appellant, the purchaser of a Kern County towing business, appeals from a monetary judgment after court trial in favor of respondent, the business seller, for alleged breach of contract, among other causes of action. STATEMENT OF THE CASE On October 7, 2008, appellant Richard Williford filed a complaint in Kern County Superior Court arising from his March 2008 purchase of a business known as Tehachapi Towing.
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NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

OPINION

POOCHIGIAN, J.

INTRODUCTION

Appellant, the purchaser of a Kern County towing business, appeals from a monetary judgment after court trial in favor of respondent, the business seller, for alleged breach of contract, among other causes of action.

STATEMENT OF THE CASE

On October 7, 2008, appellant Richard Williford filed a complaint in Kern County Superior Court arising from his March 2008 purchase of a business known as Tehachapi Towing. Appellant named respondent Betty Seymore as defendant and alleged causes of action for breach of contract, negligent and intentional misrepresentation, fraud in the inducement, intentional interference with contractual rights, personal injury, and loss of business income and property. Appellant prayed for a reduction in the purchase price of the business, damages to business premises, and loss of business profits and usage of business property, among other things.

On November 24, 2008, respondent Seymore filed a cross-complaint for damages for breach of contract, alleging failure to make installment payments on the purchase agreement for the business and failure to assume payments on a commercial vehicle owned by the business.

On March 23, 2010, after the parties filed their respective answers, trial commenced before the Honorable Sidney P. Chapin, judge of the superior court, sitting without a jury.

On June 1, 2010, the court filed a minute order setting forth a statement of intended decision in favor of respondent on the complaint and awarding $150,000 in damages for breach of the purchase agreement on the cross-complaint.

On June 7, 2010, appellant filed a request for statement of decision (Code Civ. Proc., § 632, Cal. Rules of Court, rule 3.1590(d)) and for a briefing schedule for the parties to propose content for the statement of decision.

On June 10, 2010, the court filed a minute order noting the request for statement of decision was timely and stating: "By its statement of intended decision, the court designated counsel for defendant[/]cross-complainant to prepare proposed statement of decision. For time[line], see CRC Rule 3[.]1590(d), et seq...."

On July 7, 2010, appellant filed written objections to respondent's proposed statement of decision.1 On July 19, 2010, respondent filed a written response to appellant's objections. On September 7, 2010, appellant filed further opposition and objections to the proposed statement of decision.

On September 15, 2010, the court conducted a contested hearing on the objections and took the matter under submission. On September 20, 2010, the court filed a final statement of decision.

On September 21, 2010, the court awarded respondent $30,751 in attorney fees and $6,576.87 in costs of suit.

On November 22, 2010, the court filed a formal judgment after court trial in respondent's favor in the total sum of $211,109.29.

On December 15, 2010, appellant filed a timely notice of appeal from the judgment.

STATEMENT OF FACTS2

In 2005, respondent Betty Seymore and her husband owned a business called Tehachapi Towing Service. Mr. Seymore passed away between 2006 and 2007, and respondent actively managed the enterprise after his death. Appellant Richard Williford had been engaged in the towing industry as mechanic, towing operator, and business owner for more than four decades. In 2008, he contacted respondent and asked whether she was interested in selling her business. She had not publicly advertised the business as being for sale prior to appellant's inquiry.

After contacting respondent, appellant spent three months visiting respondent's tow yard and office, reviewing accounting records, tax statements, and past invoices. He also inspected respondent's tow trucks and other business equipment. After examining the business inventory and records, appellant asked respondent whether she would be willing to sell the business and, if so, at what price. Respondent said she did not know what the business was worth quoted a figure of $150,000 as a fair price. Appellant offered to pay her $200,000 and respondent accepted.3

Respondent retained an attorney to draft a contract, entitled "Purchase Agreement," which she and appellant signed on March 31, 2008. The Purchase Agreement set for a total price of $200,000 to be paid in four installments, $50,000 down at the time of the signing of the contract and three further payments of $50,000 due at six month intervals (stated as September 1, 2008, February 1, 2009, and August 1, 2009).4 The contract further provided that in the event of a dispute or claim between the buyer and sellers arising out of the contract, the prevailing party would be entitled to reasonable attorney fees and costs.

On April 1, 2008, appellant took ownership of Tehachapi Towing Service and made the initial down payment of $50,000. A short time later, appellant began contacting respondent and complaining about her alleged failure to fulfill certain terms of the Purchase Agreement. He claimed she had kept a business computer for herself, that she was responsible for paying for transmission repairs on a non-operational tow truck, and that she was inappropriately accepting payments on accounts receivable for the business. Respondent advised appellant that her son had disassembled the computer at her home, and that she was willing to buy a new computer for appellant. She also indicated she was willing to reduce the purchase price under their agreement by the repair cost for the non-operational tow truck. She also arranged for her bookkeeper to reimburse appellant for what she said were mistaken deposits of accounts receivable. Appellant continued to complain that the business was not worth the $200,000 purchase price and declined to make further installment payments. In October 2008, one month after the due date of the second installment payment, appellant filed suit against respondent in superior court, alleging seven causes of action arising from the alleged breach of the Purchase Agreement.

DISCUSSION

I. THE TRIAL COURT DID NOT ABUSE ITS DISCRETION BY FINDING THAT SERVICE OF THE PROPOSED STATEMENT OF DECISION WAS PROPER

Appellant contends service of the proposed statement of decision was defective and improper.

He specifically argues:

"Seymore's Statement of Decision was served to the wrong attorneys — attorneys not involved in this case. Seymore's attorneys placed the wrong papers in the wrong envelope and the document served to counsel for Williford on June 22, 2010 was wrong, Statement of Decision. Should the court find that Seymore has violated applicable provisions of the Rules of the Court, Williford requests that the Statement of Decision and any resulting judgment reflect such relief, including dismissal or non-suit, as may be appropriate."5

Code of Civil Procedure section 475 states in relevant part:

"The court must, in every stage of an action, disregard any error, improper ruling, instruction, or defect, in the ... proceedings which, in the opinion of said court, does not affect the substantial rights of the parties. No judgment, decision, or decree shall be reversed or affected by reason of any error, ruling, instruction or defect, unless it shall appear from the record that such error, ruling, instruction, or defect was prejudicial, and also that by reason of such error, ruling, instruction, or defect, the said party complaining or appealing sustained and suffered substantial injury, and that a different result would have been probable if such error, ruling, instruction, or defect had not occurred or existed. There shall be no presumption that error is prejudicial, or that injury was done if error is shown."

An appellant has the burden to show not only that the trial court erred but also that the error was prejudicial. Error is prejudicial if it is reasonably probable that a result more favorable to the appellant would have been reached absent the error. A probability in this context means "`"merely a reasonable chance, more than an abstract possibility." [Citation.]'" (Red Mountain, LLC v. Fallbrook Public Utility Dist. (2006) 143 Cal.App.4th 333, 348, quoting Cassim v. Allstate Ins. Co. (2004) 33 Cal.4th 780, 800, original italics.) Where findings are ordered by the court, the adverse party is entitled to service of a copy before they are signed by the judge. Even then, in the absence of a showing of prejudice from such failure to serve a copy, the error will be disregarded on appeal. (In re Guardianship of Bensfield (1929) 102 Cal.App. 445, 448-449.)

Appellant has failed to demonstrate any prejudice from the alleged defective service and reversal on this ground is not warranted.

II. SUBSTANTIAL EVIDENCE SUPPORTED THE STATEMENT OF DECISION

Appellant contends numerous parts of the statement of decision are erroneous. He specifically argues the evidence does not support a conclusion that respondent Seymore has no liability. He further contends the trial court and respondent are obliged to point to evidence "that supports any conclusion that issues of credibility should be resolved." Appellant also contends the statement of decision should have addressed fourteen other points set out in his request for statement of decision. These include:

(1) An evidentiary basis for the $50,000 down payment, total purchase price of $200,000, and the timing of tax returns. (2) The impact of respondent's failure to provide appellant with the replacement computer. (3) Respondent's alleged failure to provide accounts receivable. (4) Appellant's claimed cost of drug and chemical clean-up as damages. (5) Whether appellant met the burden of proving breach of contract on the cross-complaint. (6) Whether appellant met the burden of proving damages against respondent. (7) The relative credibility of appellant and respondent at trial and respondent in her deposition testimony. (8) Whether appellant is entitled to an offset for appellant's alleged failure to provide the business computer, accounts receivable, and a Ford F-650 Truck referenced in the Purchase Agreement. (9) Whether there was proof of respondent misrepresenting the profitability of the business to appellant. (10) Whether there was proof that appellant illegally modified the contract and forged respondent's initials. (11) Whether there was any proof a third party prepared false tax returns for the business. (12) Whether there was evidence to show that appellant had seen a different version of the tax return introduced as Plaintiff's Exhibit No. 6.

A. Applicable Law

The trial court has a mandatory duty to provide a statement of decision (Code Civ. Proc., § 632) when properly requested. (Espinoza v. Calva (2008) 169 Cal.App.4th 1393, 1397.) The Sixth District Court of Appeal has made the following observations with respect to appellate review and statements of decision: "California appellate courts are generally constrained by three principles of appellate review: First the trial court's judgment is presumptively correct, such that error must be affirmatively demonstrated, and where the record is silent the reviewing court will indulge all reasonable inferences in support of the judgment. [Citations.] This means that an appellant must do more than assert error and leave it to the appellate court to search the record and the law books to test his claim. The appellant must present an adequate argument including citations to supporting authorities and to relevant portions of the record...." (Yield Dynamics, Inc. v. TEA Systems Corp. (2007) 154 Cal.App.4th 547, 556-557.)

"Second, findings must be sustained if they are supported by substantial evidence, even though the evidence could have justified contrary findings. [Citations.] When combined with the foregoing principle this means that an appellant who challenges a factual determination in the trial court — a jury verdict, or a finding by the judge in a nonjury trial — must marshal all of the record evidence relevant to the point in question and affirmatively demonstrate its insufficiency to sustain the challenged finding. [Citation.]" (Yield Dynamics, Inc. v. TEA Systems Corp., supra, 154 Cal.App.4th at p. 557, original italics.)

"Third, even if error is demonstrated it will rarely warrant reversal unless it appears `reasonably probable that a result more favorable to the appealing party would have been reached in the absence of the error.' (People v. Watson (1956) 46 Cal.2d 818, 836; see Cal. Const., art. VI, § 13.) This means the appellant must show not only that error occurred but that it is likely to have affected the outcome." (Yield Dynamics, Inc. v. TEA Systems Corp., supra, 154 Cal.App.4th at p. 557.)

In this case, appellant has not marshaled evidence to challenge or undermine the factual conclusions of the trial judge in the statement of decision. A party who challenges the sufficiency of the evidence to support a particular finding must summarize the evidence on that point, favorable and unfavorable, and show how and why it is insufficient. The appellant has the duty to set forth a fair and adequate statement of the evidence which is claimed to be insufficient. The responsibility for this burden cannot be shifted onto the respondent. (Huong Que, Inc. v. Luu (2007) 150 Cal.App.4th 400, 409.)

Appellant has not met his burden of identifying and establishing deficiencies in the evidence.

III. THE TRIAL COURT DID NOT ABUSE ITS DISCRETION BY ADOPTING THE PROPOSED STATEMENT OF DECISION

Appellant implicitly contends the trial court abused its discretion by failing to address his 16 objections to the proposed statement of decision prepared by respondent's counsel.

We initially note that a trial court is not required to respond point-by-point to issues raised in a request for a statement of decision. The trial court's statement of decision is sufficient if it fairly discloses the court's determination of the ultimate facts and material issues in the case. A trial court is not required to make an express finding of fact on every factual matter controverted at trial, provided the statement of decision disposes of all of the basic issues in the case. The statement of decision is required only to state ultimate rather than evidentiary facts. (In re Marriage of Burkle (2006) 139 Cal.App.4th 712, 736-737, fn. 15.)

Respondent observes in this case:

"Mr. Williford contends that the trial court wrongfully refused to address each of these sixteen issues [raised in his objections]. All sixteen issues were argued before Judge Chapin on two separate dates with both parties submitting several briefs. [¶] Mr. Williford did not include a transcript of those hearings for this court's review but appears to believe that since he made sixteen specific requests for findings that he is entitled to have the trial court address all sixteen requests. [¶] This court should be aware that Ms. Seymore submitted a second proposed statement of decision on July 19, 2010, which in addition to the adopted statement of decision, also specifically addressed the sixteen objections. [Citation.] Judge Chapin thought it unnecessary to adopt the second proposed statement of decision."

Under California law, the appellant's obligation is to include in the appellate record the portions of the reporter's transcript relevant to appellant's issues on appeal. (In re Valerie A. (2007) 152 Cal.App.4th 987, 1002.) The absence of a record concerning what actually happened at a hearing will preclude a determination that the trial court abused its discretion. When an appellant fails to provide an adequate record, he or she forfeits the abuse-of-discretion argument on appeal. (Wagner v. Wagner (2008) 162 Cal.App.4th 249, 259.)

In this case, the trial court conducted hearings on the proposed statement of decision on August 11 and September 15, 2010. The reporter's transcript on appeal covers only the trial of the matter, held March 23-24, 2010. We have no way of ascertaining from the record on appeal what transpired at the contested hearings on the proposed statement of decision. Clearly, appellant identified alleged omissions or ambiguities in the proposed statement of decision to allow the trial court to correct the alleged defects. (Ermoian v. Desert Hospital (2007) 152 Cal.App.4th 475, 498.) However, appellant bears the burden on appeal of providing an adequate record affirmatively proving error. (County of Orange v. Barratt American, Inc. (2007) 150 Cal.App.4th 420, 439.)

All intendments and presumptions must be indulged in favor of correctness and appellant's assertion of an abuse of discretion in the trial court is not warranted.

DISPOSITION

The judgment is affirmed. Costs are awarded to respondent.

Wiseman, Acting P.J. and Detjen, J., concurs.

FootNotes


1. The record on appeal does not include a copy of the proposed statement of decision prepared by respondent's counsel.
2. On April 11, 2011, appellant filed an uncaptioned document in this court setting forth numerous objections to the service of the proposed statement of decision and contents of the final statement of decision. The document includes two references to the pagination of the Statement of Decision but no references to the reporter's transcript and clerk's transcript on appeal. Although we have deemed this document appellant's opening brief on appeal, the document does not include the statement of appealability required by California Rules of Court, rule 8.204(a)(2)(B), the statement of facts required by California Rules of Court, rule 8.204(a)(2)(C), and references to a matter in the record by a citation to the volume and page number of the record as required by California Rules of Court, rule 8.204(a)(1)(C). Where an appellant's brief does not fully comply with the appellate rules of procedure, we may look to the brief of the respondent for guidance as to the salient facts of the case. (See H. Moffat Co. v. Rosasco (1953) 119 Cal.App.2d 432, 443-444.)
3. Appellant explained: "She priced the business at $150,000 and in talking to her and discussing the years that she had been in business, her reported income that she gave me, looking at the record and her overall, I told her that I thought a fair price for the business would be closer to $200,000, that would help her to re-establish herself in doing whatever she wanted to do, and that the business life for over 30 years that she had to have some accumulated value."
4. The copy of the Purchase Agreement attached as Exhibit A to appellant's complaint included several handwritten interlineated items. The copy of the Purchase Agreement attached as Exhibit A to respondent's cross-complaint did not. The superior court concluded the handwritten modifications to the copy attached to the complaint were forged by appellant and were not agreed to by respondent.
5. According to the record, appellant substituted out his original trial counsel, Robert Brenner on May 14, 2009. Appellant substituted in his new trial counsel, Indra Lahiri, on July 13, 2009. On appeal, appellant is presumably arguing that respondent's proposed statement of decision was served upon Brenner rather than upon Lahiri.
Source:  Leagle

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