Thursday, November 5, 2020

Attorney Sanctioned $22,000 for Frivolous Motion, Narrowly Avoids More Sanctions for Frivolous Appeal

In fairness, I have seen much worse arguments than this. On behalf of his AirBnB client, attorney files suit against AirBnB employees in McCluskey v. Henry (D1d3 Nov. 2, 2020) no. A158851, but the case is stayed and sent to arbitration at AAA. Through a clerical error, AAA doesn't acknowledge receipt of defendants' arbitration fees, and administratively […]

Tuesday, October 27, 2020

Family Law Appeals: The Cal. Appellate Law Podcast Episode 6

Appellate attorneys Jeff Lewis and yours truly discuss family law appeals in the latest episode of the California Appellate Law Podcast. In addition to some nuts-and-bolts procedure, we discuss: -- Hiding Bitcoin from your spouse is a righteously bad idea, and claiming you don't have to deliver her half of the Bitcoin because it was hacked is […]

Thursday, August 13, 2020

A DEFAULT JUDGMENT WAS ENTERED AGAINST YOU WITHOUT YOUR KNOWLEDGE. WHAT CAN YOU DO?

In today's litigious society, parties are quick to sue others but, due to the demands of life, defendants will oftentimes overlook the lawsuit. Doing so typically results in the entry of a judgment by default - meaning the defendant did not appear in the lawsuit to defend against the complaint. The plaintiff - now the judgment creditor by virtue of his or her judgment - will then seek to use the judgment to seize the assets of the defendant, the judgment debtor.

Once aware of the judgment enforcement efforts against them, judgment debtors typically will seek legal counsel in an attempt to set aside or vacate the judgment entered. But there are procedural requirements to follow; the judgment debtor must, above all else, act quickly to ensure their rights are protected.

A. The process for obtaining a default judgment.
Obtaining a judgment by default is a two-step process. Before a default judgment can be entered, a plaintiff must first request and obtain an entry of default against a defendant. Once the court has entered default, the defendant can no longer appear in the proceedings other than to challenge the entry of default. Once the defendant is in default, the plaintiff then typically files a detailed "prove-up" motion seeking a default judgment from the court. If the court grants the prove-up motion, a judgment is issued against the defendant. The plaintiff can now seek to enforce that judgment.

B. If the failure to defend is a result of the neglect or mistake of the defendants, a defendant can seek discretionary relief from entry of default or entry of a default judgment within six months after default was initially entered. (Code Civ. Proc., § 473(b).)

If default has been entered but a judgment has not yet issued, a defendant has six months to seek relief from entry of that default on the grounds of "mistake, inadvertence, surprise, or excusable neglect" pursuant to section 473(b) of the California Code of Civil Procedure. In essence, the defendant must assert why he or she did not respond to the complaint by setting forth a showing of mistake, inadvertence, surprise, etc.

Often, however, the defendant is unaware of the entry of default at the time a default judgment is entered. Once default judgment has been entered, the defendant/judgment debtor again has six months to seek relief under Section 473(b) on the grounds noted above. But even if the judgment debtor moves for relief within six months of issuance of the default judgment, the court will refuse to vacate the default under Section 473(b) if the motion is brought more than six months after entry of default. Vacating the judgment would be an "idle act." This is because even if it were vacated, the defendant would remain in default, unable to oppose any subsequent "prove-up" motion. (See, e.g., Pulte Homes Corp. v. Williams Mechanical, Inc. (2016) 2 Cal.App.5th 267, 273.)