On October 16, 2008, respondent Starpoint Properties, LLC, and its affiliates
After three of the four events listed in the settlement agreement and stipulation occurred, Starpoint filed the stipulation, and judgment for the respondents was entered ex parte on March 19, 2009. Notice of entry of judgment was served on appellants on March 23, 2009. Appellants filed a motion to set aside the judgment on May 26, 2009, alleging that respondents coerced them into entering into the settlement agreement. On June 17, 2009, the trial court found that appellants' claim of coercion was unfounded, and denied appellants' motion.
On June 17, 2009, appellants filed a notice of appeal, challenging the validity of the trial court's entry of judgment pursuant to the stipulation, and the trial court's denial of their motion to set aside the judgment. For reasons we detail below, the appeal from the entry of judgment is untimely, and no appeal lies from the trial court's denial of appellants' motion to set aside the judgment. Hence, we must dismiss the appeal.
In 2003, Starpoint loaned money to Namco Capital Group, Inc., and its affiliates (Namco). In 2007, Starpoint was entitled to repayment of the full value of these loans. Appellant Unitex Industries, Inc. (Unitex), one of Namco's affiliates, entered into a promissory note with Starpoint whereby it agreed to pay Starpoint more than $14 million. The note was secured by real property owned by Unitex, while appellants Homayoun Namvar and Ramin Namvar,
By October 2008, Unitex had defaulted on its payment obligations, and all the guarantors, including Homayoun and Ramin, had failed to repay the note. On October 16, 2008, Starpoint filed an action for breach of contract and fraud in Los Angeles Superior Court. In order to settle the case, appellants, along with other defendants not parties to this appeal, invited Starpoint to take part in a sale of real property owned by the Namvars. On October 31, 2008, the parties entered into a settlement agreement and mutual general release (the Settlement Agreement), under which Starpoint agreed to dismiss
In order to effectuate the sale of the Bundy Property, two purchase and sale agreements were executed concurrently with the execution of the Settlement Agreement. Under these agreements, Starpoint and the other buyers of the Bundy Property were required to make a total of $5 million hard money deposit, and to assume the existing loans on the Bundy Property.
The Settlement Agreement expressly stated that the parties had entered into it "voluntarily," and "with full knowledge of its significance," and that its terms had been "negotiated at arms' length among sophisticated Parties represented by counsel." The Settlement Agreement also provided that if any of the parties were to bring an action against any other party under or relating to the Settlement Agreement, the prevailing party shall be entitled to recover reasonable attorney fees and costs.
On November 3, 2008, as provided for in the October 31, 2008 Settlement Agreement, appellants and Starpoint drafted a stipulation for entry of judgment (the Stipulation), which provided that Starpoint shall be entitled to judgment against any of the defendants in the amount of $8,362,000, if certain events were to occur (we describe these events below). The Stipulation also stated that appellants had waived their right to appeal or attack any judgment issued pursuant to the Stipulation, as well as any right to receive notice that judgment would be entered pursuant to the Stipulation. The Stipulation further indicated that appellants waived their rights freely and with the advice of counsel.
The Stipulation provided that Starpoint would obtain judgment against the defendants if any one of the following four events occurred: (1) the purchase agreement for the Bundy Property failed to close; (2) the purchase and sale agreements for the Bundy Property were modified or amended without Starpoint's consent, or were terminated; (3) the sale of the Bundy Property was affected by a bankruptcy proceeding; or (4) any attempt was made to force Starpoint to disgorge any of the cash payments made under the Settlement Agreement.
On November 10, 2008, Starpoint filed a request for dismissal of all claims against defendants.
Eventually, both the purchase and sale agreements for the Bundy Property failed to timely close. Furthermore, on December 22, 2008, an involuntary bankruptcy proceeding was filed against Ezri Namvar, who took part in the Settlement Agreement, but is not a party to this appeal, and Namco, affecting the sale of the Bundy Property. Finally, in March 2009, two purchase agreements for the Bundy Property were terminated. Each of these events alone was a basis for Starpoint to obtain judgment against appellants pursuant to the terms of the Stipulation.
On March 19, 2009, Starpoint filed the Stipulation ex parte, and judgment in the amount of $8,680,443.20 was entered that same day. Starpoint served appellants with a notice of entry of the judgment on March 23, 2009.
One day before the Stipulation was filed, on March 18, 2009, appellants, along with others not parties to this appeal, filed a complaint against Starpoint and other defendants in the Los Angeles Superior Court, alleging that the Settlement Agreement and the Stipulation were obtained through "extortion."
On May 7, 2009, appellants filed a first motion to set aside the judgment, which was later withdrawn and replaced by a new motion filed on May 26, 2009. Appellants' new motion stated that it was "submitted to the Court with the intention of superseding and taking the place of the previously submitted Motion for Relief." On June 17, 2009, the trial court heard and denied appellants' motion to set aside the judgment. Appellants filed this appeal that same day.
Appellants claim that the trial court erred in (1) entering judgment for Starpoint pursuant to the Stipulation on an ex parte basis, without giving appellants an opportunity to appear, (2) entering judgment for Starpoint pursuant to the Stipulation in violation of the automatic stay of all judicial proceedings triggered by the bankruptcies of Namco and Ezri, and (3) rejecting appellants' claim of extortion because appellants failed to report Starpoint's alleged wrongdoing to the police. Appellants further assert that the judgment entered for Starpoint pursuant to the Stipulation was obtained through fraud upon the court, as Starpoint's counsel failed to disclose to the court appellants' pending legal action against Starpoint alleging extortion and duress, which appellants filed one day before judgment was entered against them.
The appeal from the trial court's entry of judgment is untimely, and no appeal lies from the trial court's denial of appellants' motion to set aside the judgment. We therefore dismiss appellants' claims without reaching the merits.
Here, Starpoint served appellants with a notice of entry of judgment on March 23, 2009. Appellants were therefore required to file their notice of appeal by May 22, 2009. Appellants' notice of appeal was not filed until June 17, 2009. Thus, the appeal was untimely unless the time to appeal was extended by some other rule.
Appellants' May 7, 2009 motion to set aside the judgment, although filed within the statutory period, was never reviewed or addressed by the trial court. Instead, appellants withdrew the May 7, 2009 motion and replaced it with a new motion to set aside the judgment, which was filed on May 26, 2009, four days after appellants' deadline to appeal. Although the motions shared many of the same arguments and supporting exhibits, it is impossible to construe the trial court's order denying appellants' May 26, 2009 motion, as an order also denying their then withdrawn May 7, 2009 motion. If we were to extend appellants' deadline to appeal on the basis of a withdrawn motion that was never addressed by the trial court, and was later superseded by another motion, filed after appellants' time to appeal had expired, we would allow every litigant to increase his or her allotted time to appeal through the continuous filing, withdrawing, and filing of motions, without having to face the consequences—whether adverse or not—of a trial court's decision on the motion's merits.
We conclude that the appeal challenging the March 23, 2009 entry of judgment in favor of Starpoint was untimely, and that appellants' May 26, 2009 motion to set aside the judgment failed to extend their time to appeal. Under the circumstances, we have no jurisdiction to consider the merits of appellants' claims, and, therefore, we must dismiss the appeal.
Although we do not need to consider appellants' claims, we nevertheless note that, had their appeal been timely filed, appellants would still fail on the merits. Indeed, none of the claims set forth in appellants' briefs justifies a reversal of the trial court's decision.
First, appellants claim that the trial court erred in entering judgment against them on an ex parte basis, without giving them an opportunity to appear. The argument, however, is meritless because appellants expressly waived their right to receive notice in the Settlement Agreement, and such waivers are valid under California law.
Additionally, appellants allege that the trial court's March 19, 2009 entry of judgment was void because it violated the automatic stay on judicial proceedings triggered by the bankruptcies of Namco and Ezri. However, the argument also fails here because appellants, having never been part of the
Further, appellants argue that it was error for the trial court to reject appellants' claim of extortion on the grounds that appellants failed to call the police after the alleged extortion took place. Again, appellants' argument fails, because the trial court was well within its discretion when it concluded that appellants' claim of extortion was "dubious," and therefore refused to set aside the March 19 judgment on that basis.
Finally, appellants allege that Starpoint obtained judgment through fraud upon the trial court, because, at the time judgment was entered against appellants, Starpoint's counsel did not disclose to the court the pending legal action against Starpoint filed by appellants the day before. Once again, appellants' claim is meritless since fraud upon the court is only established when "extrinsic factors have prevented one party to the litigation from presenting his or her case." (In re Marriage of Park (1980) 27 Cal.3d 337, 342 [165 Cal.Rptr. 792, 612 P.2d 882].) Here, appellants' pending legal action against Starpoint did not seek to enjoin entry of the trial court's judgment against them, and also included numerous other parties not involved in this lawsuit. Appellants' civil suit against Starpoint was not material to the trial court's decision in this action, and therefore Starpoint's counsel's failure to disclose its existence cannot be considered to have "prevented [appellants] from presenting [their] case." (Ibid.)
In sum, appellants have failed to set forth any meritorious claim justifying a reversal of the trial court's decision.
Starpoint argues that pursuant to the terms of the Settlement Agreement, it is entitled to recover reasonable attorney fees and costs incurred in connection with this appeal. We agree.
Here, the Settlement Agreement entered into by Starpoint and appellants expressly provided that the prevailing party shall recover reasonable attorney fees and costs in any action brought against any other party under or in relation to the Settlement Agreement. Since we must dismiss appellants' untimely appeal, Starpoint is entitled to recover reasonable attorney fees and costs incurred in relation to this appeal. (Hsu v. Abbara, supra, 9 Cal.4th at pp. 876-877.)
The appeal is dismissed. Respondents are to recover attorney fees and costs on appeal.
Mallano, P. J., and Rothschild, J., concurred.