Cui v. Secured Capital Limited Partnership CA4/1 ( 2021 )


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  • Filed 6/28/21 Cui v. Secured Capital Limited Partnership CA4/1
    NOT TO BE PUBLISHED IN OFFICIAL REPORTS
    California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for
    publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication
    or ordered published for purposes of rule 8.1115.
    COURT OF APPEAL, FOURTH APPELLATE DISTRICT
    DIVISION ONE
    STATE OF CALIFORNIA
    PAUL CUI,                                                            D078110
    Plaintiff and Appellant,
    (Super. Ct. No. 37-2019-
    v.                                                          00041913-CU-FR-CTL)
    SECURED CAPITAL LIMITED
    PARTNERSHIP et al.,
    Defendants and Respondents.
    APPEAL from a judgment of the Superior Court of San Diego County,
    Ronald L. Styn, Judge. Reversed in part and affirmed in part.
    Liu & Wakabayashi and Youjun Liu for Plaintiff and Appellant.
    Mulvaney Barry Beatty Linn & Mayers, Patrick L. Prindle and George
    A. Rios III for Defendants and Respondents.
    This appeal arises out of a commercial tenancy between tenant Paul
    Cui and landlord Secured Capital Limited Partnership (Secured Capital). In
    a prior unlawful detainer action brought by Secured Capital against Cui,
    these parties entered into a stipulated judgment wherein Cui agreed to forfeit
    the lease, surrender possession of the commercial property by a date certain,
    and pay rent at a designated rate for the months the parties litigated the
    unlawful detainer.
    Cui then filed a new unlimited civil action against Secured Capital and
    its broker, El Dorado Properties, Inc. (collectively, defendants). He alleged
    breach of contract, intentional and negligent misrepresentation, concealment,
    and premises liability. Defendants moved for summary judgment or in the
    alternative, summary adjudication, arguing the stipulated judgment in the
    unlawful detainer action barred Cui’s claims. The court agreed and granted
    summary judgment.
    We reverse as to all claims except the premises liability claim.
    Because of the summary nature of an unlawful detainer proceeding, a
    judgment precludes a tenant’s later claims only if those claims were fully and
    fairly litigated in the unlawful detainer proceeding. Under this rule, if the
    prior unlawful detainer action was resolved by a stipulated judgment, future
    claims between the parties are barred only to extent the stipulated judgment
    affirmatively shows the parties intended to resolve those claims. Here, the
    stipulated judgment did not contain any provisions stating the parties
    intended to litigate, resolve, or settle any claims or issues other than the
    right of immediate possession and amount of holdover rent. Thus, the court
    erred in granting summary adjudication on Cui’s subsequent claims.
    As to the premises liability claim, Cui did not challenge the court’s
    ruling on this claim on appeal and therefore he forfeited his right to assert
    error. We thus affirm as to this claim and direct the court to issue an order
    granting summary adjudication of this claim.
    FACTUAL AND PROCEDURAL BACKGROUND
    2
    Commercial Lease Agreement
    Cui entered into a three-year commercial lease agreement with Secured
    Capital, commencing in February 2017, for one unit in a multi-unit facility
    for warehousing and office space. Cui’s lease also included four parking
    spaces, which he accessed through a driveway shared with other tenants. El
    Dorado represented Secured Capital as its broker during negotiations.
    Section 2.6 of the lease agreement restricted the size of vehicles using
    the four parking spaces, stating they could not be any “larger than full-size
    passenger automobiles or pick-up trucks.” The agreement prohibited Cui
    from loading, unloading, or parking vehicles in areas other than these four
    spaces and from servicing or storing vehicles in the common area of the
    property.
    Unlawful Detainer Action
    Fourteen months into the lease, Secured Capital served Cui with a
    notice to surrender possession, claiming he was violating the lease provisions
    by allowing vehicles to park, load, and unload in the common area driveway.
    Secured Capital then brought a “limited” unlawful detainer action (i.e., the
    amount demanded did not exceed $10,000) against Cui. The complaint
    requested possession of the premises, forfeiture of the commercial lease
    agreement, attorney fees and costs, and damages for each day that Cui
    remained in possession of the property through entry of judgment.
    In his answer, Cui admitted the complaint’s allegations, but alleged the
    shared driveway and parking spaces violated local zoning ordinances.
    Because of the driveway’s steep grade, his business vehicles and customers
    could not access his unit through the driveway. Although Cui would have to
    temporarily park in the driveway to load and unload his vehicles, [Cui] would
    ensure that the driveway [was] not fully blocked so other vehicles can still
    3
    safely pass through.” He claimed he told Secured Capital about the problem
    and asked it to install a ramp between the parking lot and driveway.
    “[Secured Capital] agreed to do so, but never did.” He asserted affirmative
    defenses for retaliatory and discriminatory eviction based on his prior
    complaints about the driveway. He also claimed that the “fair rental value of
    the premises should be decreased accordingly.”
    Stipulated Judgment
    Instead of proceeding to trial on the merits of their dispute, Cui and
    Secured Capital entered into a stipulated judgment in December 2018. The
    stipulation provided as follows:
    “1. [Secured Capital] shall be entitled to possession of the
    premises. . . . A writ of execution for possession may issue
    immediately, however, no lockout shall occur prior to March 1,
    2019 so long as [Cui] complies with all other terms of this
    Stipulated Judgment.
    “2. The agreement under which possession of said property is
    taken by [Cui] is forfeited and surrendered.
    “3. [Cui] shall:
    “a. Pay rent for October, November, December, 2018 in
    the total amount of $10,815.00 as follows: $5,500.00 on
    December 17, 2018 and $5,315.00 on January 15, 2019;
    [¶]
    “c. [Cui] shall pay January, 2019 rent in the amount of
    $3,605.00 by January 7, 2019. Additionally, [Cui] shall pay
    February, 2019 rent in the amount of $3,713.15 by February 5,
    2019;
    “d. [Cui] shall vacate possession of the subject premises
    and return possession to [Secured Capital] on or before
    February 28, 2019;
    “e. [Cui], his guests or invitees, shall not park or impede
    the traffic flow in the area designated “No Park Any
    4
    Time” . . . so that other tenants may have access to their
    premises. Further, [Cui] may temporarily park one service or
    customer vehicle at a time in the area identified . . . until
    December 31, 2018 so long as [Cui’s] or other customer’s
    vehicle does not block the driveway. . . .
    “4. If [Cui] fails to timely comply with all of the above terms,
    [Secured Capital], upon 24 hour telephonic notice to [Cui’s]
    counsel, schedule an ex parte evidentiary hearing to determine
    if [Cui] has failed to comply with the above terms. If the court
    determines that [Cui] has failed to timely comply with the
    above terms, then [Secured Capital] shall schedule a lockout as
    soon thereafter as possible. . . .
    [¶] . . . [¶]
    “7. [Secured Capital] and [Cui] waive any and all rights to a
    noticed motion and/or hearing on the entry of judgment
    pursuant to this stipulation.”
    The court and both parties signed the stipulated judgment. Counsel for
    each party signed as approving “form and content.” The stipulated judgment
    did not include findings or conclusions on any of the other disputed matters,
    such as Cui’s affirmative defenses for retaliatory eviction or his other
    allegations against Secured Capital. It also did not include a waiver of any
    claims.
    On January 17, 2019, at Secured Capital’s request, the court reopened
    the matter, found Cui violated the terms of the stipulated judgment
    (apparently by continuing to park his vehicles in unauthorized areas),
    granted Secured Capital’s request for immediate possession and a lockout,
    and directed the clerk to issue a writ of execution for possession for Secured
    Capital.
    Cui’s Present Lawsuit
    5
    Seven months later, Cui filed a complaint against defendants, which he
    later amended. The amended complaint alleged Secured Capital and Cui had
    been in a landlord-tenant relationship since January 24, 2014. As Cui’s prior
    lease was expiring, he was looking for a larger space for his expanding home
    remodeling business. El Dorado notified Cui that Secured Capital had an
    available unit for him that would suit his needs.
    This, Cui contends, was a negligent and an intentional
    misrepresentation as both defendants knew the property’s shared driveway
    had such a steep slope, larger vehicles could not use it. They knew the
    problem would impede his ability to use the rented premises for his business.
    Cui claims defendants concealed the fact that the driveway violated San
    Diego zoning regulations to induce him to enter the lease agreement.
    Cui alleged he learned the slope exceeded the allowed gradient
    provided by San Diego local regulation only after he moved in. Because of the
    size of his vehicles, he was unable to load and unload materials. He had—he
    claimed—no choice but to park in the driveway. He further alleged that
    instead of fixing the driveway as he asked, Secured Capital evicted him in
    retaliation for his complaints.
    Cui further claimed that when he discovered mold in his unit, he paid
    for an inspection, which he turned over to Secured Capital. Secured Capital
    only partially abated the problem, failed to conduct a follow-up inspection,
    and failed to reimburse Cui for the first inspection. Cui sued defendants for
    negligent and intentional misrepresentation, concealment, breach of contract,
    and premises liability.
    Defendants’ Summary Judgment/Summary Adjudication Motion
    6
    Defendants moved for summary judgment, or in the alternative,
    summary adjudication, arguing there were no triable issues of fact because
    the doctrine of res judicata barred Cui’s causes of action. The trial court
    granted the summary judgment motion and entered judgment for defendants.
    It concluded claim preclusion under the doctrine of res judicata barred Cui’s
    causes of action for breach of contract, negligent and intentional
    misrepresentation. The trial court held that Cui’s affirmative defenses in the
    unlawful detainer action were the same as his causes of action in the present
    lawsuit, and that by entering into the stipulated judgment with Secured
    Capital, Cui already had “the opportunity to litigate the same issues [and]
    defenses” to a final judgment on the merits.
    DISCUSSION
    On appeal, Cui contends the trial court erred in concluding defendants
    met their burden to show his claims were barred under the res judicata
    doctrine as to his concealment, negligent and intentional misrepresentation,
    and breach of contract claims.1 We agree. Under settled law and the factual
    record before us, we determine the court erred because the parties’ stipulated
    judgment in the unlawful detainer action did not intend to resolve matters
    beyond possession of the leased premises and holdover rent owed by Cui.
    1     The trial court also concluded that Cui failed to demonstrate triable
    issues of material fact as to the complaint’s premises liability cause of action.
    Cui’s appeal does not address this portion of the ruling and dismissal of this
    cause of action. By failing to address this aspect of the trial court's ruling,
    Cui forfeited any claim that the trial court erroneously granted summary
    adjudication as to this cause of action. (People v. Stanley (1995) 
    10 Cal.4th 764
    , 793 [if a party fails to provide legal argument and citations to authority
    on a point, “ ‘the court may treat it as waived, and pass it without
    consideration’ ”]; accord People v. Bryant, Smith and Wheeler (2014) 
    60 Cal.4th 335
    , 363–364.)
    7
    I.
    Standard of Review
    Summary judgment is proper if “all the papers submitted show that
    there is no triable issue as to any material fact and that the moving party is
    entitled to a judgment as a matter of law.” (Code Civ. Proc., § 437c, subd.
    (c).)2 The same rule applies to a summary adjudication on a particular cause
    of action. (§ 437c, subd. (f)(2).) We review the trial court’s summary
    judgment and summary adjudication ruling de novo. (State of California v.
    Continental Ins. Co. (2017) 
    15 Cal.App.5th 1017
    , 1031.) The issue of whether
    the res judicata doctrine applies in a particular case is a question of law,
    which we also review de novo. (City of Oakland v. Oakland Police & Fire
    Retirement System (2014) 
    224 Cal.App.4th 210
    , 228.)
    II.
    Unlawful Detainer Actions
    An unlawful detainer action provides both residential and commercial
    landlords expedited procedures to recover immediate possession of leased
    premises. (§§ 1159-1179a; Mobil Oil Corp. v. Superior Court (1978) 
    79 Cal.App.3d 486
    , 494.) To preserve the summary nature of the proceeding,
    “ordinarily, only claims bearing directly upon the right of immediate
    possession are cognizable.”3 (Vella v. Hudgins (1977) 
    20 Cal.3d 251
    , 255
    (Vella).)
    2    Further statutory references are to the Code of Civil Procedure unless
    otherwise stated.
    3     Since 1929 and the addition of section 1161a to the statute, the
    unlawful detainer summary procedures are also available to “persons who
    had obtained title to real property under certain specifically enumerated
    circumstances.” (Gonzales v. Gem Properties, Inc. (1974) 
    37 Cal.App.3d 1029
    ,
    1034 (Gonzales), cited with approval in Vella, supra, 20 Cal.3d at p. 255.)
    8
    The parties are generally not estopped from pursuing—and indeed in
    most instances must pursue—other claims between them through an
    ordinary civil action. (See Northrop Corp. v. Chaparral Energy, Inc. (1985)
    
    168 Cal.App.3d 725
    , 729–730; Lynch & Freytag v. Cooper (1990) 
    218 Cal.App.3d 603
    , 608–609). A landlord who brings an unlawful detainer
    action maintains the right to recover other remedies from the tenant in a
    separate civil action. (Civ. Code, § 1952, subd. (b); Hong Sang Market, Inc. v.
    Peng (2018) 
    20 Cal.App.5th 474
    , 492 [Civ. Code, § 1952, subd. (b) “modifies
    the general rule that a judgment in an earlier action precludes a party from
    raising issues in later litigation that could have been raised in the earlier
    action” (emphasis in original)].)
    Because of the summary nature, tenants generally may not file cross-
    complaints or counterclaims in unlawful detainer proceedings. (See Vella,
    supra, 20 Cal.3d at p. 255; Glendale Fed. Bank v. Hadden (1999) 
    73 Cal.App.4th 1150
    , 1153 [the summary character of unlawful detainer
    proceeding would be defeated if issues irrelevant to right of immediate
    possession could be introduced through cross-complaint or counterclaims].)
    They too must seek redress for other legal or equitable claims through an
    ordinary civil action. (Vella, at p. 255; see also Gonzales, supra, 37
    Cal.App.3d at p. 1034, citing Lindsey v. Normet (1972) 
    405 U.S. 56
    , 65–66
    [“Nor does Oregon deny due process of law by restricting the issues in
    [unlawful detainer] actions . . . . The tenant is not foreclosed from instituting
    his own action against the landlord and litigating his right to damages and
    other relief in that action.”].)
    To defend against eviction, a tenant appears in an unlawful detainer
    action by filing an answer or demurrer. (§ 1170.) A tenant may assert
    affirmative defenses in the answer. But these too are limited to defenses that
    9
    would either preserve the tenant’s possession of the property or preclude the
    landlord from recovering possession of it.4 (Drouet v. Superior Court (2003)
    
    31 Cal.4th 583
    , 587 [“In unlawful detainer actions, tenants generally may
    assert legal or equitable defenses that ‘directly relate to the issue of
    possession and which, if established, would result in the tenant’s retention of
    the premises.’ ”]; Vella, supra, 20 Cal.3d at p. 255.) For commercial tenants,
    the trial court lacks authority to order abatement of rent in an unlawful
    detainer action, which a tenant may seek only through a separate civil action.
    (Underwood v. Corsino (2005) 
    133 Cal.App.4th 132
    , 135–137 (Underwood).)
    Although unlawful detainer proceedings are summary in nature, the
    parties may avoid trial and request that judgment be entered under a
    stipulation for judgment. (§ 664.6.) Like any settlement agreement, the
    language of the stipulated judgment controls. (Needelman v. DeWolf Realty
    Co., Inc. (2015) 
    239 Cal.App.4th 750
    , 757–758 (Needelman); Civ. Code,
    § 1644.) The court applies general contract interpretation principles to the
    determine the scope of the parties’ stipulated judgment.
    III.
    Res Judicata
    The doctrine of res judicata may follow from an unlawful detainer
    action, but because of the limited purpose of unlawful detainer proceedings,
    “[a] judgment in unlawful detainer usually has very limited res judicata
    effect.” (Vella, supra, 20 Cal.3d at p. 255.) It “will not prevent one who is
    4      Proper affirmative defenses include retaliatory eviction, constructive
    eviction, discrimination, and the landlord’s breach of the rental agreement.
    (See Green v. Superior Court of San Francisco (1974) 
    10 Cal.3d 616
    , 632–635
    [discussing defenses that go to question of possession and concluding that the
    warranty of habitability “may be directly relevant to the issue of
    possession”].)
    10
    dispossessed from bringing a subsequent action to resolve questions of title
    [citations], or to adjudicate other legal and equitable claims between the
    parties.” (Ibid.) Because an unlawful detainer action generally only resolves
    matters of possession and rent, res judicata will not limit further litigation
    between the parties on other matters. (Id. at pp. 256–257.)
    In regular civil actions, the reach of the res judicata doctrine is far
    broader. Claim preclusion, which is the “ ‘ “ ‘primary aspect’ ” ’ of res
    judicata, acts to bar claims that were, or should have been, advanced in a
    previous suit involving the same parties.” (DKN Holdings LLC v. Faerber
    (2015) 
    61 Cal.4th 813
    , 824 (DKN Holdings), emphasis added.) Issue
    preclusion, or collateral estoppel, is the second and separate aspect of the
    “overarching doctrine” of res judicata that prevents relitigation of issues
    already decided in a prior action. (Id. at pp. 823–824, 827 [explaining the
    distinction between the two aspects of res judicata and addressing the
    confusion that arises from imprecise use of the umbrella term].)
    Where the reviewing court determines, however, that additional
    matters were litigated and decided in the unlawful detainer action, res
    judicata would be appropriate. (Vella, supra, 20 Cal.3d at pp. 256–257 [“ ‘full
    and fair’ litigation of an affirmative defense even one not ordinarily
    cognizable in unlawful detainer, if it is raised without objection, and if a fair
    opportunity to litigate is provided—will result in a judgment conclusive upon
    issues material to that defense”].) The California Supreme Court noted,
    however, that such circumstances “are uncommon.” (Id. at p. 257.)
    These rules apply equally when the prior unlawful detainer action
    resolved through a stipulated judgment. (Vella, supra, 20 Cal.3d at p. 256
    [stipulated judgment is as “conclusive as to any issues necessarily
    determined in that action” as a final judgment following trial]; Needelman,
    11
    supra, 239 Cal.App.4th at p. 759 [“Under California law, a ‘judgment entered
    without contest, by consent or stipulation, is usually as conclusive a merger
    or bar as a judgment rendered after trial’ ”], quoting 7 Witkin, Cal. Procedure
    (5th ed. 2008) Judgment, § 372, p. 996; accord Malkoskie v. Option One
    Mortgage Corp. (2010) 
    188 Cal.App.4th 968
    , 973–974.)
    Courts use ordinary contract principles to determine the scope of the
    stipulated judgment. (Needelman, supra, 239 Cal.App.4th at pp. 758–759.)
    Generally, “[t]he words of a contract are to be understood in their ordinary
    and popular sense.” (Civ. Code, § 1644.) We must interpret the contract “to
    give effect to the mutual intention of the parties as it existed at the time of
    contracting, so far as the same is ascertainable and lawful.” (Civ. Code,
    § 1636.) “When a contract is reduced to writing, the intention of the parties
    is to be ascertained from the writing alone, if possible . . . .” (Civ. Code,
    § 1639.)
    Where the stipulated judgment resolves matters limited to possession
    and rent, the courts have denied application of res judicata to bar further
    litigation between the parties. (Landeros v. Pankey (1995) 
    39 Cal.App.4th 1167
    , 1170–1171 [stipulated judgment did not bar subsequent litigation
    where it was drawn on a court form, did not contain “specific or general
    language concerning the dispute” raised by the affirmative defense, did not
    include “comprehensive language typically employed to indicate a settlement
    of any and all issues in dispute,” and ultimately, “gave the landlord less than
    the relief prayed”]; Pelletier v. Alameda Yacht Harbor (1986) 
    188 Cal.App.3d 1551
    , 1557 [stipulated judgment did not mention relinquishment of claims
    arising from a retaliatory eviction and thus that claim “was not fully and
    fairly litigated in an adversary hearing”]; see also Moriarty v. Laramar
    Management Corp. (2014) 
    224 Cal.App.4th 125
    , 138–141 [default judgment in
    12
    unlawful detainer action where complaint put at issue claims in a subsequent
    action did not bar the later claims under either aspect of res judicata, stating,
    “[t]he sole issue in an unlawful detainer action is possession of the
    premises”].)
    Where the parties intended to settle matters beyond the issues in the
    unlawful detainer action through the stipulated judgment, however, the
    courts have found future claims precluded. (Needelman, supra, 239
    Cal.App.4th at pp. 758–761.) The intent to do so, however, should be
    unambiguous. (California State Auto Assn. Inter-Ins. Bureau v. Superior
    Court (1990) 
    50 Cal.3d 658
    , 664–65 [“Most importantly, a stipulated
    judgment may properly be given collateral estoppel effect, at least when the
    parties manifest an intent to be collaterally bound by its terms”], citing
    § 1908, subd. (b), see also Needelman, at pp. 758–761.)
    IV.
    Cui’s Present Claims are Not Barred by Res Judicata
    In its summary judgment decision, the trial court concluded that Cui
    raised the same allegations in the unlawful detainer action (by way of his
    affirmative defenses) as he raises against defendants in the present lawsuit.
    On this point, we agree with the trial court.
    In particular, the allegations underlying his causes of action for
    negligent and intentional misrepresentation and concealment are based on
    the same operative alleged facts. Namely, defendants concealed from Cui
    that the driveway slope exceeded local ordinance and that because of the
    driveway grade, Cui could not access his rented commercial space for its
    intended use. Cui’s cause of action for breach of contract is also based on
    these underlying factual allegations, but also alleges Secured Capital failed
    to adequately abate mold in the premises.
    13
    While we acknowledge that the allegations between the two actions are
    largely the same, that is only the beginning—not the end—of our res judicata
    analysis. Because we determine that the parties’ stipulated judgment did not
    manifest an intent to resolve issues other than possession and holdover rent,
    it was not a final judgment on the issues or claims Cui raises in his present
    lawsuit and res judicata does not bar his present claims.
    Our starting point is the parties’ stipulated judgment. (Needelman,
    supra, 239 Cal.App.4th at pp. 757–778.) “When interpreting the stipulated
    judgment, we use ordinary contract principles and, in the absence of extrinsic
    evidence, we may interpret it as a matter of law.” (Id. at p. 758.)
    Here, the parties’ stipulated judgment unambiguously provided for
    Cui’s forfeiture of the lease agreement, surrender of the premises by a date
    certain, and the assessment of rent for October 1, 2018, through February 28,
    2019. It stated in relevant part: Secured Capital “shall be entitled to
    possession of the premises”; “[t]he agreement under which possession of said
    property is taken by [Cui] is forfeited and surrendered”; Cui shall pay back
    rent for October, November, and December 2018 (since Secured Capital filed
    the unlawful detainer action) for $10,815 and future rent (between the
    stipulated judgment and Cui’s surrender of possession) for January and
    February 2019 for $3,605 and $3,713.15 respectively; and Cui shall vacate
    the possession of the property “on or before February 28, 2019” unless he
    failed to timely comply with the terms of the Stipulated Judgment.
    Like any contract, the content of the stipulated judgment controls.
    (Needelman, supra, 239 Cal.App.4th at pp. 757–758; Civ. Code, § 1644.) And
    absent stipulated findings regarding matters now at issue in Cui’s lawsuit, or
    an express waiver of claims, we cannot read the parties’ stipulation in the
    14
    unlawful detainer action as anything more than requiring forfeiture,
    surrender/possession of the leased premises, and the rent identified.
    Defendants contend, however, that because Cui appeared in the action,
    asserted certain affirmative defenses, and agreed to the stipulated judgment,
    Cui waived all defenses he did raise or could have raised in the unlawful
    detainer proceeding. First, Cui could not have litigated the causes of action
    he raises in the present lawsuit in the unlawful detainer action. (Underwood,
    supra, 133 Cal.App.4th at pp. 135–137.) And second, the California Supreme
    Court in Vella already rejected defendants’ argument, that “the mere
    pleading of a defense without objecting by the adverse party necessarily
    demonstrates adequate opportunity to litigate the defense.” (Vella, supra, 20
    Cal.3d at p. 258 [“In return for speedy determination of his right to
    possession, plaintiff sacrifices the comprehensive finality that characterizes
    judgments in nonsummary actions”].)
    Defendants would have this court follow the holding in Needelman,
    which determined that the parties stipulated judgment barred the
    subsequent claims. (Needelman, supra, 239 Cal.App.4th at pp. 758–759.)
    But there is a key factual distinction between Needelman and this case: the
    stipulated judgment in Needelman contained an express waiver and release
    of claims for wrongful eviction and for “any action in any way arising out of or
    concerned with his tenancy.” (Ibid.)
    Here, had the parties wanted to settle additional claims by way of their
    stipulated judgment, they could have done so through the inclusion of release
    and waiver language, like the parties did in Needelman. Both parties were
    represented by counsel at the time and the stipulated judgment contains no
    such language. The fact that the parties did negotiate waiver language as to
    the parties’ ability to challenge “a noticed motion and/or hearing on the entry
    15
    of judgment pursuant to this stipulation” shows by the parties’ express
    language that their stipulation contained all the parties were willing to
    waive.
    We hold that absent findings about Cui’s asserted defenses, or a release
    of claims, the parties’ stipulated agreement did not meet the third element
    for claim preclusion. (DKN Holdings, supra, 61 Cal.4th at p. 824 [“(3) after a
    final judgment on the merits in the first suit”].)5
    DISPOSITION
    The judgment is reversed and the matter is remanded with directions
    for the trial court to vacate its order granting summary adjudication in favor
    of Secured Capital and El Dorado on the negligent misrepresentation,
    intentional misrepresentation, concealment, and breach of contract causes of
    action. Cui shall recover his costs on appeal.
    5      We also reject defendants’ argument that parties should expressly
    withdraw issues from stipulated judgments in unlawful detainer proceedings
    or risk broad waiver of claims. The cases on which it relies, Sargon
    Enterprises, Inc. v. University of Southern California (2013) 
    215 Cal.App.4th 1495
     and Ellena v. State of California (1977) 
    69 Cal.App.3d 245
    , are not
    unlawful detainer actions. The Supreme Court in Vella showed that, because
    of the summary nature of unlawful detainer proceedings and the limited
    matters that are at issue, either the court’s findings (or, as shown in
    subsequent cases discussed post, the parties’ stipulated judgment) must
    manifest the issues and claims adjudicated or decided in the matter. (Vella,
    supra, 20 Cal.3d at p. 256.) Because the stipulated judgment here did not do
    so, there was no final adjudication of Cui’s claims for purposes of claim
    preclusion.
    16
    HALLER, Acting P. J.
    WE CONCUR:
    AARON, J.
    DATO, J.
    17
    

Document Info

Docket Number: D078110

Filed Date: 6/28/2021

Precedential Status: Non-Precedential

Modified Date: 6/28/2021