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MICHAIL v. ALTI, B230263. (2011)

Court: Court of Appeals of California Number: incaco20111222056 Visitors: 13
Filed: Dec. 22, 2011
Latest Update: Dec. 22, 2011
Summary: NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS MANELLA, J. Appellant Pari Michail sued respondents Antoine and Gracia Alti, contending they had failed to return funds she had given them for safekeeping and/or for investment purposes. 1 After a nonjury trial, the court entered judgment for the defense under Code of Civil Procedure section 631.8. The primary issues raised on appeal are procedural — whether the trial court abused its discretion in refusing appellant's counsel's requests to (a) reca
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NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

MANELLA, J.

Appellant Pari Michail sued respondents Antoine and Gracia Alti, contending they had failed to return funds she had given them for safekeeping and/or for investment purposes.1 After a nonjury trial, the court entered judgment for the defense under Code of Civil Procedure section 631.8. The primary issues raised on appeal are procedural — whether the trial court abused its discretion in refusing appellant's counsel's requests to (a) recall Antoine to the stand after he had been examined and excused, and (b) call a witness not on appellant's witness list. Appellant's sole substantive contention is that substantial evidence does not support the court's findings on her claim for conversion. Finding no merit to appellant's procedural or substantive contentions, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

A. Complaint

In December 2009, appellant brought suit against respondents for fraud, unjust enrichment, breach of contract, and conversion. The complaint alleged that in 1986, appellant loaned $70,000 to respondents, that respondents used the funds to purchase a liquor store, and that respondents had not repaid the amounts owed. The complaint further alleged that in September 2009, Antoine signed a reaffirmation of the debt. The fraud claims alleged that appellant was induced to enter into the loan agreement by respondents' misrepresentations. The conversion claim alleged that appellant was the owner of "[i]nterest and [p]rincipal owed on the [1986] loan" and that "[w]hile [respondents] originally came into the possession of the converted property legally, they then improperly retained it despite the demand by [appellant] for return of the property."

B. Evidence at Trial

The case was tried to the court. Both appellant and Antoine testified. They did not dispute that in 1986, Antoine borrowed $70,000 from appellant.2 Nor was there any dispute that sometime prior to 1995, appellant won $15,000 gambling at a casino and asked Antoine to hold it for her.3 The parties disputed how much of either sum was repaid in the intervening years.4 There was no dispute that in 1995, Antoine informed appellant that according to his calculations, he still owed her $27,000 and that appellant did not object or suggest that any different amount was due.5

In August 1995, Antoine enabled appellant to purchase an interest in a liquor store by paying the seller (his brother-in-law) the $27,000 the parties agreed he still owed her. A month later, appellant signed a document stating "[t]his is to certify that as of September 1st, 1995, Antoine Alti has paid in full all the money and interest that he owes to Pari Michail." Within a few months of purchasing the interest in the liquor store, appellant quarreled with her partner (her other daughter, Carol Mehdipour, who had purchased the remaining interest in the store) and Mehdipour returned appellant's $27,000 investment to her. Appellant gave the $27,000 to Antoine.

The parties disputed why appellant gave the $27,000 to Antoine and what transpired in the ensuing years. Antoine testified that appellant was continuing to receive government benefits and gave him the $27,000 to hold because having money in her name in a bank account would interfere with her ability to receive such benefits. He testified that thereafter, he gave her cash as she needed it to pay her living expenses, and continued to do so until 2009.

Appellant testified that she gave Antoine the $27,000 with the understanding that he would find her another investment that would provide an income. For several years thereafter, she was sick, depressed, and in and out of the hospital. In 2000, she asked Antoine what had happened to the money and he replied, "that was a long time ago." Two years later, she invited Antoine to her home to "put the numbers down," "tell [her] what [she] ha[d]," "give it to [her] and finish it." However, they did not reach an agreement and she never saw him again.6 According to appellant, Antoine did not purchase any investments or gifts for her after 1995, or repay any of the $27,000.

There was no dispute that in 2009, nearly 15 years after appellant's investment in the liquor store fell through and she returned the $27,000 to Antoine, Damavandi met with Antoine, having prepared for his signature a document stating that he acknowledged and agreed to repay loans totaling $93,000. The document specified that Antoine received $8,000 from appellant in 1985, $70,000 in 1986, and $15,000 in 1990. Antoine refused to sign the acknowledgment. Instead, in September 2009, he signed a document which he had prepared himself. It stated: "For various considerations, Antoine Alti agrees to pay Ms. Pari Michael [sic] the sum of $93,000[;] Antoine Alti will do his best to pay this amount as soon as possible or when he sells the business." The document went on to state: "After today's date[,] if [appellant] harass[es] Antoine Alti or any member of his family directly or indirectly, or discuss[es] this agreement or any matter related to Antoine Alti['s] personal and private life with anyone other than [Damavandi], Antoine Alti has the right to cancel this agreement and consider it as null and void."7

C. Section 631.8 Motion and Court's Findings

After the conclusion of appellant's case in chief, respondents moved for judgment under Code of Civil Procedure section 631.8.8 Respondents' counsel argued that the statutes of limitations applicable to the claims appellant had asserted — oral contract, written contract, negligent misrepresentation, conversion, and fraud — had expired, and that her claims were barred by laches. Counsel also argued that the document signed by Antoine in 2009 was the product of blackmail and duress and that it could not serve as an acknowledgment or reaffirmation of a prior debt because it was not unqualified and unconditional. Counsel further argued that the evidence established that Antoine had repaid all amounts appellant loaned him or gave him to hold. Appellant's counsel argued that the statute of limitations was tolled by Antoine's reassurances of repayment or financial assistance, and that the document he signed in 2009 restarted the limitations period.

The court granted the motion, finding that appellant had failed to meet her burden of proof on any cause of action. Preliminarily, the court found that the parties had entered into a loan agreement in 1986, when appellant gave $70,000 to respondents. At the same time, it was undisputed that from 1986 to 1991, appellant was paid $1,000 per month, or between $60,000 and $72,000 at a minimum. The court noted that Antoine admitted owing appellant $27,000 in 1995, but with respect to any amount remaining due, found appellant "less than credible" and possibly even "willfully false." The court stated that it "disregarded much of what [appellant] testified [to] based on her unwillingness to answer simple and direct questions that were put to her."9 Referring to the gambling winnings appellant gave Antoine to hold, the court found that "to attempt to enforce this agreement would be the court enforcing an illegal contract, which is against the law" because the evidence established appellant gave the money to Antoine to "mislead the government" in order to continue to receive government assistance.

Judgment was entered for respondents. This appeal followed.

DISCUSSION

A. Requests to Recall Antoine and to Call a Witness not on Appellant's Witness List

1. Background

When trial commenced, two attorneys were present to represent appellant — Carlos Lloreda and Andrew Reback. On the first and second day of trial, Lloreda gave the opening statement and examined respondents. At the end of the second day, the direct examination of appellant began, conducted by Reback. It was not concluded that day. On the third day of trial, a Friday, Lloreda informed the court that appellant was ill and had been hospitalized. Lloreda further informed the court that he had only recently been associated in as counsel and wished to withdraw.10 The court denied the motion, stating the request could not be made orally and that withdrawal required appellant's consent, but continued the trial to the following Monday to give Lloreda an opportunity to follow proper procedures. Appellant appeared at that time, but Lloreda reported telephonically that he was suffering chest pains and would be unable to attend. Reback asked for a continuance, contending he was unable to proceed because he had never before conducted a civil trial and did not have the case file. The court instructed him to continue his examination of appellant and promised to revisit the matter if Lloreda continued to be unwell and additional witnesses were called. Several days later, during the cross-examination of appellant, the court received and reviewed a physician's letter confirming Lloreda's disability but indicating no estimated date for his recovery. Reback requested a one or two-week continuance so that Lloreda could conduct the final portion of the trial. Noting that Reback had been counsel of record since the beginning of the case and that the doctor's note did not indicate that Lloreda would ever be sufficiently recovered to appear, the court denied the request.

After the conclusion of appellant's testimony, Reback examined Damavandi and thereafter requested permission to recall Antoine and to call Mehdipour, who was listed on respondents' witness list but not on appellant's. The court denied both requests, noting that although counsel had estimated a two or three-day trial, it had been going on for almost a week, and that Antoine had been examined by prior counsel. Appellant contends the court erred in refusing these requests, particularly when viewed in light of Lloreda's alleged abandonment.11

2. Analysis

Under Evidence Code section 774, "[a] witness once examined cannot be reexamined as to the same matter without leave of the court." Evidence Code section 778 provides that "[a]fter a witness has been excused from giving further testimony in the action, he cannot be recalled without leave of court." Whether to grant or withhold leave is "in the court's discretion." (Evid. Code, §§ 774, 778.) Antoine was the first witness called by appellant. His examination consumed nearly a day of trial. Our review of the record indicates he was thoroughly questioned by attorney Lloreda on all relevant matters before being excused. Attorney Reback offered no reason for recalling Antoine, other than the fact that he had not personally examined him, and identified no new matter or line of inquiry he wished to explore. We find no abuse of discretion in the court's denial of appellant's request to recall Antoine.

With respect to the court's denial of appellant's request to call Mehdipour, there can be no dispute that the decision to exclude Mehdipour's testimony due to appellant's failure to identify her as a witness in pretrial proceedings was a matter within the court's discretion. Trial courts "`have fundamental inherent equity, supervisory, and administrative powers, as well as inherent power to control litigation before them'" and "possess inherent rulemaking authority as well as rulemaking authority granted by statute." (Elkins v. Superior Court (2007) 41 Cal.4th 1337, 1351, quoting Rutherford v. Owens-Illinois, Inc. (1997) 16 Cal.4th 953, 967.) Under this authority, trial courts have the power "to implement and enforce effective conduct of [pretrial] proceedings" (Mellone v. Lewis (1965) 233 Cal.App.2d 4, 12), and "`to make orders [that] prevent the frustration, abuse, or disregard of the court's processes.'" (Peat, Marwick, Mitchell & Co. v. Superior Court (1988) 200 Cal.App.3d 272, 287, quoting Conn v. Superior Court (1987) 196 Cal.App.3d 774, 785.) "The court's inherent power to curb abuses and promote fair process extends to the preclusion of evidence." (Peat, Marwick, Mitchell & Co. v. Superior Court, supra, at p. 288.)

Moreover, even assuming the court erred in refusing to permit appellant to call Mehdipour, reversal is not required unless appellant establishes prejudice. (See In re Marriage of McLaughlin (2000) 82 Cal.App.4th 327, 336, quoting Waller v. TJD, Inc. (1993) 12 Cal.App.4th 830, 833 ["`When the trial court commits error in ruling on matters relating to pleadings, procedures, or other preliminary matters, reversal can generally be predicated thereon only if the appellant can show resulting prejudice, and the probability of a more favorable outcome, at trial. Article VI, section 13 [of the California Constitution] admonishes us that error may lead to reversal only if we are persuaded `upon an examination of the entire cause' that there has been a miscarriage of justice.'"] (Italics deleted).) Neither at trial nor in her briefs on appeal has appellant set forth the expected testimony of Mehdipour or suggested how it would have led to a different outcome.12 Because appellant has failed to show prejudice, any error in refusing the request was harmless.13

B. Conversion Claim

The only substantive issue raised on appeal is appellant's contention that substantial evidence does not support the court's finding for the defense on the conversion claim. Appellant contends the "decisive facts" proving the essential elements of conversion were undisputed. For the reasons set forth below, we disagree.

"[C]onversion is any act of dominion wrongfully exerted over another's personal property in denial of or inconsistent with his rights therein." (Gruber v. Pacific States Sav. & Loan Co. (1939) 13 Cal.2d 144, 148.) The elements of conversion are (1) "`plaintiff's ownership or right to possession of property'"; (2) "`defendant's wrongful act toward or disposition of the property, interfering with plaintiff's possession'"; and (3) "`damage to plaintiff.'" (PCO, Inc. v. Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro, LLP (2007) 150 Cal.App.4th 384, 395.) Money can be the subject of conversion if there is "`a specific, identifiable sum involved'" (ibid.), and California courts permit an action for conversion where the defendant has "misappropriated, commingled, or misapplied specific funds held for the benefit of others." (Id. at p. 396.) However, actions for the conversion of money are not permitted "when the amount of money involved is not a definite sum." (Ibid.)

Preliminarily, we note that although appellant alleged in her complaint that respondents' converted a specific sum — $70,000 — at trial, she claimed that an additional $23,000 had been given to respondents and conceded that some part of the $93,000 total had been repaid.14 The issue was whether any additional principle or interest remained due. Because that amount was not a "definite sum," a conversion claim was not the appropriate method for obtaining recovery.15 (See PCO, Inc. v. Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro, LLP, supra, 150 Cal.App.4th at p. 397 [assertion of conversion claim based on theft of duffel bags containing cash was inappropriate because plaintiffs were unsure how many duffel bags were taken and how much cash each contained].)

More fundamentally, the conversion claim failed because the evidence conclusively established that the $70,000 lent in 1986, as well as the $8,000 allegedly lent to Antoine prior to that date and the $15,000 given to Antoine to hold sometime between 1986 and 1995, were fully repaid in 1995, when appellant signed the document indicating that all sums owed to her had been repaid. There was no dispute that later in 1995, appellant gave $27,000 to Antoine either to hold for investment purposes or to pay appellant's living expenses. But neither in the complaint nor at trial did appellant contend that the $27,000 given to Antoine in 1995 represented the sum certain necessary to establish her conversion claim. Moreover, had she asserted such a claim, we could not find as a matter of law that she was entitled to that sum. The evidence whether all or any portion of that sum was paid to or for the benefit of appellant by Antoine was disputed at trial. Antoine testified that he continued to pay appellant's expenses and to give her cash long after she gave him the $27,000 to hold for her. The only evidence that Antoine had not fully repaid the amounts due came from appellant, whose testimony the court found unworthy of belief.16

It is also true, as respondents argue, that any possible claim for conversion of the $27,000 or any other amount expired long ago under the applicable statute of limitations. Conversion claims are subject to the three-year statute of limitations found in Code of Civil Procedure section 338, subdivision (c)(1) (First Nat. Bank v. Thompson (1943) 60 Cal.App.2d 79, 81-82), which begins to run when "the aggrieved party discovers or ought to have discovered the existence of the cause of action for conversion." (Bennett v. Hibernia Bank (1956) 47 Cal.2d 540, 561.) According to appellant's testimony, Antoine made clear by 2000 or 2002 that he had no intention of paying her any more money. Appellant did not bring suit until 2009, well past the statutory deadline.

Appellant contends the document signed by Antoine in 2009 reaffirmed the existence of the debt and revived her conversion claim against respondents. A clear written acknowledgment or promise, signed by the party to be charged, may revive a claim or prevent the statute of limitations from running. (Code Civ. Proc., § 360; Kaichen's Metal Mart, Inc. v. Ferro Cast Co. (1995) 33 Cal.App.4th 8, 14-15.) Where, as here, however, the purported acknowledgment is executed after the original debt or claim has been barred by the statute of limitations, it does not serve to revive the original debt or claim, but "creates a new contract and a new obligation dating from the acknowledgment" (id. at p. 15, citing Eilke v. Rice (1955) 45 Cal.2d 66, 73); any ensuing action must be on the breach of the promise to pay contained in the acknowledgment, not the original default. (Vassere v. Joerger (1938) 10 Cal.2d 689, 692-693; Southern Pacific Co. v. Prosser (1898) 122 Cal. 413, 416-417.) Appellant's complaint failed to assert a claim for breach of contract or promise to pay based on the alleged acknowledgment. All the causes of action in her complaint were based on the original barred debt.

Moreover, under the standards governing acknowledgments, the 2009 document was deficient. First, the document was signed by Antoine alone, and could not create a new claim against Gracia. (Bemer v. Bemer (1957) 152 Cal.App.2d 766, 773 ["`[T]he promise of one of several joint obligors cannot avail to revive as against the others a cause of action barred by limitation, or to suspend the running of the statute.'"].) Even as to Antoine, it represented a conditional promise at best, stating not an immediate promise to pay, but that Antoine would "do his best to pay . . . as soon as possible or when he sells the business." An acknowledgment containing a conditional promise, such as a promise to pay when able is insufficient to restart the statute of limitations. (Maurer v. Bernardo (1931) 118 Cal.App. 290, 294.) In addition, the document stated that Antoine's promise would be "null and void" if appellant continued to harass Antoine or his family. Antoine testified that appellant continued to call and threaten him after he signed the document. Accordingly, the document failed to provide appellant with an enforceable right against respondents.

DISPOSITION

The judgment is affirmed. Respondents are awarded their costs on appeal.

EPSTEIN, P. J. and SUZUKAWA, J., concurs.

FootNotes


1. To avoid confusion, respondents Antoine and Gracia Alti, who are husband and wife, will be referred to by their first names.
2. Appellant testified that prior to 1986, she lent Antoine $8,000. Antoine had no recollection of receiving this sum.
3. Antoine testified that appellant gave him the $15,000 to hold because she was receiving government benefits and did not want to have money in her name in a bank account. Appellant denied that she had given the money to Antoine for that reason, but acknowledged she had sought government assistance in 1991. In addition, appellant testified that her sister sent money to appellant's daughter, Farima Damavandi, to pay appellant's rent, and that she did not report that income to the government, although she understood she was required to do so.
4. Appellant testified that when Antoine took the money, he promised to pay her $1,000 per month until he found a business to invest the principal in, most likely a liquor store. Beginning in 1986 and ending in 1990 or 1991, Antoine paid appellant $1,000 per month in cash. Antoine testified that he paid appellant a total of $250,000 over the years, but that much of it he did not apply to the balance because appellant "was like [a] mother to [him]" and he considered some of the money he gave her and the items he purchased for her to be gifts. In response to specific questions, he testified that he paid appellant $20,000 in 1986; $24,000 to $30,000 in 1987; $35,000 in 1988; $40,000 in 1989; $40,000 to $45,000 in 1990; and $30,000 to $40,000 in 1991. According to Antoine, these funds were primarily in the form of paying her rent because appellant did not want to have cash in her account. He testified that he paid or contributed to her rent until 1995. In addition, he stated that he paid for her to have plastic surgery and bought her a $2,800 television set.
5. Antoine testified that at the time, he had an accountant who kept records of all the amounts he had paid appellant, but that in the intervening years the accountant retired and the records were lost. Appellant had no records and testified that she looked to Antoine to keep track of how much remained due.
6. Appellant testified that she spoke to Antoine telephonically and spoke to or met with his family members to discuss her belief that he still owed her money. According to appellant, during the period after 2000, Antoine promised to buy her a condominium and to provide for her "as a son."
7. Antoine testified that he signed the document because appellant was harassing him and his family and because she had threatened to "destroy" him and to reveal to his wife that he had or was having multiple affairs.
8. Code of Civil Proecedure section 631.8 provides: "After a party has completed his presentation of evidence in a trial by the court, the other party, without waiving his right to offer evidence in support of his defense or in rebuttal in the event the motion is not granted, may move for a judgment. The court as trier of the facts shall weigh the evidence and may render a judgment in favor of the moving party . . . ."
9. During appellant's cross-examination, she was evasive on a number of points and sometimes contradicted herself. For example, after testifying on direct and in her deposition that Antoine had paid her $1,000 every month for several years after he received the $70,000 loan, she attempted to withdraw that concession, stating "He paid me in cash or checks. The checks bounced." She testified at one point that Damavandi never helped with her expenses and later testified that she did. She said that being examined in the underlying matter was "the first time I'm in a courtroom other than paying tickets," but admitted moments later that she had personally handled a matter in small claims court and had previously been involved in other litigation. She testified at her deposition that she had not spoken to Mehdipour for 10 years after the return of her investment in the liquor store in 1995, but at trial denied this was true. She was evasive when asked when she began receiving government assistance; if she had had any conversations with Gracia about the $70,000 loan; whether Antoine paid for her plastic surgery; whether he bought her an expensive television; whether he paid the rent for a period prior to 1995 when she was living with Mehdipour; why she signed the 1995 document indicating Antoine had repaid all the borrowed sums; why, if she believed he was already cheating her, she returned the $27,000 to Antoine after her investment in the liquor store fell through; and whether she ever objected to any of the language on the 2009 document signed by Antoine.

Characteristic of appellant's testimony was the following exchange with respondents' counsel: Q: "[Y]ou're sure that [Antoine] gave you no money after 2000; is that correct?" A: "If I start talking you say yes or no." Q: "That's yes or no, ma'am." A: "It's always yes or no. Okay. What should I say? Yes, no, both. I can't say yes and no." Q: "Just say the truth." A: "Then the truth." . . . Q: "Did Mr. Alti give you money after the year 2000 ma'am, yes or no?" A: "Yes and no." At another point, when appellant's counsel objected that a question had been asked and answered, the court overruled the objection, stating: "Since we get conflicting answers every time the questions are asked, I'll hear it again."

10. Lloreda also stated at that time that he intended to advise appellant to dismiss the case.
11. Appellant does not contend that the court erred in denying the request for a continuance.
12. At trial, appellant made no offer of proof. On appeal, appellant merely suggests "it is reasonable to assume [the witness] had something probative to offer." This is insufficient to meet appellant's burden of showing prejudice.
13. Appellant cites Dole Bakersfield, Inc. v. Workers' Comp. Appeals Bd. (1998) 64 Cal.App.4th 1273 for the proposition that the court's denial of her request to call Mehdipour violated due process. There, the trial court refused the defendant employer's request to call the plaintiff employee. The due process considerations arose from the fact that the defendant was denied its right to cross-examine its opponent and "`"meet and rebut the evidence produced . . . ."'" (Id. at pp. 1276-1277.) That was not the situation here.
14. As the trial court expressly found, the evidence established that respondents repaid a minimum of $60,000 to $72,000 between 1986 and 1990 or 1991, and Antoine's testimony, if credited, established that he paid appellant much more.
15. Even now, appellant is uncertain of the amount of her claim, as evidenced by her request that this court "remand . . . to the trial court for submission of respective accountings from the parties." Remand to pursue a new cause of action not asserted in the complaint or at trial is a not a remedy we are empowered to provide.
16. Appellant asks that we make different findings under Code of Civil Procedure section 909, which provides: "In all cases where trial by jury is not a matter of right or where trial by jury has been waived, the reviewing court may make factual determinations contrary to or in addition to those made by the trial court." The authority granted by section 909 is to be "exercised sparingly" (In re Zeth S. (2003) 31 Cal.4th 396, 405) and "is never used where there is conflicting evidence in the record and substantial evidence supports the trial court's findings." (Philippine Export & Foreign Loan Guaruantee Corp. v. Chuidian (1990) 218 Cal.App.3d 1058, 1090.)
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