Mateyko v. Mateyko CA2/7 ( 2020 )


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  • Filed 11/17/20 Mateyko v. Mateyko CA2/7
    NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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    has not been certified for publication or ordered published for purposes of rule 8.1115.
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SECOND APPELLATE DISTRICT
    DIVISION SEVEN
    RAYMOND MATEYKO,                                             B291105
    Plaintiff and Appellant,                               (Los Angeles County
    Super. Ct. No. PC057235)
    v.
    MICHAEL MATEYKO, et al.,
    Defendants and Respondents.
    APPEAL from a judgment of the Superior Court of Los
    Angeles County, Stephen Pfahler, Judge. Affirmed.
    John Sullivan for Plaintiff and Appellant.
    Raymond M. Sutton for Defendants and Respondents.
    _______________________
    INTRODUCTION
    Plaintiff Raymond Mateyko appeals the court’s grant of
    summary judgment in favor of Michael Mateyko, his son, and
    Hoist Elevator Company (Hoist) (collectively defendants) and its
    denial of his motion for a new trial.1 We conclude the court
    correctly granted defendants’ motion for summary judgment and
    denied Raymond’s motion for a new trial based on admissions
    Raymond made during discovery in the case, and Raymond
    otherwise did not present evidence that raised a triable issue of
    fact. We, therefore, affirm the judgment.
    PROCEDURAL AND FACTUAL BACKGROUND
    On August 5, 2016, Raymond filed a complaint in which he
    alleged causes of action for breach of oral contract, breach of
    fiduciary duty, conversion, unjust enrichment/constructive trust,
    and money had and received.2 Hoist is an elevator maintenance
    and repair business that was founded by Michael in 2005.
    Raymond contends he was entitled to a share of Hoist’s net
    profits based on an oral agreement among him and his wife
    (Michael’s mother) and Michael.
    1      Because Raymond, Michael, and Raymond’s brother,
    Anthony Mateyko, share a last name, we refer to them by their
    first names to avoid confusion.
    2      In addition to defendants, Raymond sued Michael’s wife,
    Rochelle Buller, and 2117 Venice LLC. On November 21, 2017,
    Raymond requested dismissal with prejudice of all claims against
    Buller and 2117 Venice LLC and of the conversion cause of action
    as to all defendants on February 2, 2018. The court entered the
    dismissals as requested.
    2
    In deposition testimony, Raymond made significant and
    consequential admissions regarding there being no agreement to
    share profits; there was no partnership agreement; and he was
    not a director, officer, or shareholder of Hoist. Among other
    things, Raymond indicated he did not have an agreement put into
    writing because Michael was his son, and he believed Michael
    would fulfill the verbal promises he claimed Michael made to
    him.
    A.    Defendants’ Motion for Summary Judgment
    Defendants filed a motion for summary judgment ,
    which was heard and argued on February 9, 2018. In their
    motion papers, defendants claimed Raymond could not
    establish triable issues of material facts existed because
    Raymond had admitted in his responses to discovery and in
    deposition testimony that no agreement to share profits
    existed between him and Michael, and they never entered
    into a partnership agreement. Additionally, defendants
    maintained Raymond’s causes of action were barred by
    applicable statutes of limitations because he filed his
    complaint in 2016, although Raymond admitted to not
    having received any profits as early as 2008.
    In support of the motion, defendants filed a separate
    statement of undisputed material facts in which they
    claimed, as relevant to this appeal, Michael started his own
    elevator repair and service business and incorporated it
    under the name Hoist, and he was the sole shareholder,
    director, and officer of the corporation; no oral agreement
    with Raymond was ever formed; Raymond was owed no
    fiduciary duty, as neither a confidential relationship nor
    partnership agreement existed between Raymond and
    3
    Michael; and relevant statutes of limitations barred all
    causes of action.
    In his declaration in support of his opposition to the
    summary judgment motion, Raymond stated the following.
    He went into the elevator maintenance and repair business
    with Kevin Brockway as his partner, and they started the
    West Coast Elevator Corporation. Michael joined West
    Coast after he returned from college in 2004, and Raymond
    trained him in all aspects of the business. In 2005, the
    Mateyko family decided to open its own business which
    became Hoist, and Raymond amicably split with Brockway.
    Raymond and his wife contributed $40,000 as start-up
    money for Hoist, and they divided up responsibilities with
    Michael regarding Hoist. Almost all of Hoist’s work resulted
    from contacts Raymond had from the many years he had
    worked in the elevator repair business.
    Raymond added he and his wife and Michael agreed
    they would split the net proceeds of large repair or
    maintenance jobs which were over $100,000. After his wife
    died, Raymond’s relationship with Michael became strained.
    In early 2009, he approached Michael concerning a split of
    the net proceeds, and Michael gave him a check for $75,000
    from Hoist’s account, but Michael soon thereafter asked
    Raymond to return it. When Raymond resisted, Michael
    assured him he was good for the money, stated they were
    “partners for life,” and repeatedly promised to pay him
    bonuses.3 Raymond believed, since they were family, and he
    3    In his declaration and his appellate briefs, it appears
    Raymond uses the terms “bonuses” and “net proceeds” and the
    phrase “share of profits” interchangeably.
    4
    had contributed much to the business, Michael would keep
    his promise. However, in 2015, after a verbal altercation
    with Michael, Michael ordered Raymond out of the business,
    and when Raymond asked about his share of profits, Michael
    told him he would be paid. But Michael later denied that he
    owed Raymond anything.
    As proof of an agreement to share profits, Raymond
    submitted copies of a $75,000 check made out to him by
    Hoist, one he made out for $75,000 to Michael, and another
    he wrote to Michael for $10,000. There was a notation on the
    memorandum line of the $75,000 check to Raymond that
    read “loan as per contract.”4
    In opposing defendants’ summary judgment motion,
    Raymond asserted factual issues existed with respect to his
    partnership with Michael; Michael owed fiduciary duties to
    him; and a constructive trust should be imposed because
    Michael had retained profits that rightfully belonged to him.
    Raymond replied to defendants’ statement of undisputed
    material facts by asserting defendants were estopped from
    relying on the statute of limitations; he and Michael owed
    fiduciary duties to each other based on a partnership or
    agreement to pay Raymond bonuses; Michael told him on
    numerous occasions Michael would eventually pay him profits
    from Hoist; and he relied on Michael’s promises.
    4     Raymond also submitted a declaration from his
    brother, Anthony. Although that declaration is referenced in
    defendants’ objections to Raymond’s evidence and in the
    court’s ruling on the motion , it was not included as part of
    the record on appeal.
    5
    B.    Plaintiff’s Deposition Testimony
    As significant for purposes of the issues on appeal, the
    court considered certain of Raymond’s deposition testimony, as
    reflected in the series of questions and answers below:
    “Q    Okay. But you mentioned sharing in the profits;
    right?
    A     Yeah. Yeah. The profits weren’t on the maintenance.
    The profits were on big jobs . . . And the big repair jobs that’s
    where we were supposed to share the profits.
    Q     Okay. When was the first time that you had an
    agreement with Michael concerning Hoist?
    A     I never had an agreement with him.
    Q     Okay. Was there ever any agreement to be partners?
    A     No. I told him verbally. I had a choice to give him a
    percentage of the business or apprenticeship thing, but I figured
    he’s my son. Let me give him an equal part of it so he has—he
    has a lot of sail under his—a lot of wind under his sail and he
    would work harder. So I told him, ‘Look. We’re splitting with
    Kevin. We’ll start a new company, and we’re partners 50/50.’
    Q     Okay. So in this case, have you produced all of the
    documents, as far as you know, in discovery? ¶ And discovery is
    the exchange of written questions and answers and documents. ¶
    As far as you know, have you provided us with all of the
    documents that help support your complaint in this case?
    A     I think so.
    Q     Okay. Are there any contracts among those
    documents?
    A     No.
    Q     Okay. Why is that?
    A     Why would I need a contract? Contract for what?
    6
    Q     For any of your claims to help protect your rights.
    A     No. I never had any contracts with my son because
    he’s my son. Why would I have a contract? Everything is verbal
    with him. ¶ These were—it was my company, my clients. I took
    him as a partner. . . .
    Q     So go ahead. Now, you were mentioning to me that
    when you were forming Hoist with Michael, you said ‘Okay.
    We’re going to be partners’ or words to effect; correct?
    A     I—he—I told him it was—when I broke up with
    Kevin, I told him we were going to be partners. I never used the
    term ‘50/50’ or anything like that. We were going to be partners.
    And I told my wife about it, and she said, ‘Oh, that’s
    okay’ I brought—I ran it through my wife. ¶ So I only did that—I
    didn’t have to make him a partner. He would have stayed—he
    would have worked for me without being a partner. I could have
    gave [sic] him a good salary without being a partner. But I
    figured I wanted him to take over the business eventually
    because I can’t work forever. So I’m going to teach him the ropes.
    He’s going to keep on working. That was my objective.
    Q      Did you express that to Michael?
    A      What?
    Q      Did you tell that to Michael?
    A      No.
    Q      What else did you say to Michael in terms of what the
    terms of the agreement related to Hoist between you and Michael
    were? Besides—
    A   I had no agreement. Whatever I said went at the
    time.
    7
    Q    Okay. So when you and Michael were first forming
    Hoist, there was no agreement? It was just what you were telling
    him?
    A    Right.
    Q    Okay. So was there a point in time when you and
    Michael kind of came to an agreement? ‘Okay. We’re partners.’?
    A    There was never an agreement. I just told him we
    were going to be partners, and he agreed. He went along with
    that. . . .
    Q    Okay. Was there ever an agreement between you
    and Michael to be partners?
    A    No.
    Q    Okay.
    A    Other than verbal.
    Q    But that was just you telling him–
    A    Yeah.”
    C.     The Court’s Ruling on the Summary Judgment
    Motion
    After the hearing on the motion, on February 9, 2018, the
    court issued a tentative ruling in defendants’ favor. On April 3,
    2018, the court adopted the tentative ruling and entered a
    judgment for defendants. The court found Raymond’s discovery
    admissions to be determinative and concluded that a contract for
    sharing profits never existed; Raymond did not discuss with
    Michael splitting profits after individual jobs; and Raymond and
    Michael did not have an agreement to be partners. The court also
    invoked the statute of limitations as a bar to Raymond’s breach of
    contract claim. It reasoned that even if a profit sharing
    agreement were in place regarding “big” repair jobs, any breach
    8
    had occurred well beyond the two-year statute of limitations for a
    breach of an oral contract claim.
    With respect to the breach of fiduciary duty cause of action,
    the court held the claim failed because the evidence established
    no partnership existed between Raymond and Michael.
    Additionally, the court found Raymond’s argument that
    defendants were estopped from arguing the statute of limitations
    applied to this claim, because of Michael’s alleged
    representations that he and Raymond were partners for life, was
    contradicted by Raymond’s discovery responses in which he
    admitted no partnership agreement existed.
    The court held the unjust enrichment/constructive trust
    claim failed because Raymond could not demonstrate the
    existence of a binding agreement with Michael to share profits,
    he was defrauded out of the money, Michael owed him a fiduciary
    duty, or that Michael committed a breach of trust or wrongful act.
    The court also found the money had and received cause of
    action was a common count that depended upon the same facts as
    Raymond’s other causes of action and, because those other claims
    failed, the money had and received claim also failed.
    The court indicated it sustained defendants’ objections to
    certain portions of Raymond’s and Anthony’s declarations
    submitted in opposition to the summary judgment motion. The
    objectionable statements in Raymond’s declaration were that he
    helped to form Hoist; Raymond and his wife contributed $40,000
    to start Hoist; Michael agreed with Raymond that Raymond and
    Raymond’s wife would split profits from Hoist on repair or
    maintenance jobs; Michael assured Raymond that Michael would
    take care of him because they were “partners for life,” and
    Michael repeated that phrase many times thereafter; and
    9
    Raymond returned money to Michael and believed he would be
    repaid based on Michael’s promises to him.
    The court sustained objections to Anthony’s averments
    concerning Raymond having told him Michael would be joining
    Raymond and Raymond’s wife in the elevator and maintenance
    business in California; Michael talked about the existence of a
    partnership agreement between them; Michael acknowledged to
    him the existence of a partnership; and, although he was
    unaware of the terms of an agreement, he understood Raymond
    and Michael continued to be partners until Michael fired
    Raymond from Hoist.
    Notice of entry of the judgment in defendants’ favor was
    filed on April 12, 2018.
    D.    Raymond’s Motion for New Trial
    On April 26, 2018, Raymond filed a motion for new trial
    based on purported newly discovered evidence that consisted of a
    draft settlement agreement and declarations submitted by
    Raymond and Brockway. The draft settlement agreement
    indicated Raymond had made claims for “an ownership interest
    in or a percentage of profits derived from 2117 Venice, Hoist and
    certain real property” owned by Michael and Buller and that
    defendants had denied Raymond’s claims in this regard.
    Raymond argued this draft document supported his claim that a
    partnership existed between him and Michael, and Michael
    acknowledged money was owed to him. Raymond also
    maintained that, although he may not have had a formal
    agreement with Michael, both an informal partnership and a
    profit-sharing agreement existed.
    Defendants opposed the motion, arguing the evidence
    Raymond submitted was not new because Raymond had such
    10
    evidence in his possession for a considerable period of time even
    before he filed his complaint. Further, defendants asserted there
    was no cognizable claim for breach of a contract because there
    was no underlying partnership agreement and no other basis for
    a fiduciary relationship. Defendants also noted Raymond was
    again attempting to support his claims with declarations that
    contradicted his prior discovery responses.
    On June 4, 2018, the trial court ruled the proffered
    evidence was not newly discovered and was inadmissible in any
    event, Brockway’s declaration did not support a finding that a
    partnership existed between Raymond and Michael, and
    Raymond had conceded in his own discovery admissions that no
    agreement existed between the parties. The court sustained
    defendants’ objections to the entirety of Raymond’s and
    Brockway’s declarations and found that Raymond had failed to
    establish a basis for a new trial.
    Raymond filed a timely appeal on July 2, 2018.
    DISCUSSION
    A.    Standards of Review
    Review of a grant or denial of summary judgment is de
    novo. (Samara v. Matar (2018) 
    5 Cal.5th 322
    , 338.) The question
    is whether the moving party was entitled to judgment as a
    matter of law. (Code Civ. Proc., § 437c, subd. (c); Doe v. Good
    Samaritan Hospital (2018) 
    23 Cal.App.5th 653
    , 661.) The initial
    burden is on a defendant to present evidence that either
    conclusively negates an element of each of plaintiff’s causes of
    action or shows that plaintiff does not possess, and cannot
    reasonably obtain, evidence necessary to establish at least one
    element of each cause of action. (Aguilar v. Atlantic Richfield Co.
    11
    (2001) 
    25 Cal.4th 826
    , 853-854.) Once defendant satisfies this
    initial burden, the burden shifts to plaintiff to show a triable
    issue of one or more material facts exists as to the cause of action.
    (Id. at p. 850; Code Civ. Proc., § 437c, subd. (p)(2).)
    The reviewing court considers ““““all the evidence set forth
    in the moving and opposing papers except that to which
    objections were made and sustained.’” [Citation.] We liberally
    construe the evidence in support of the party opposing summary
    judgment and resolve doubts concerning the evidence in favor of
    that party.”’” (Hampton v. County of San Diego (2015) 
    62 Cal.4th 340
    , 347.) “[R]esponsive evidence that gives rise to no more than
    mere speculation cannot be regarded as substantial, and is
    insufficient to establish a triable issue of material fact.”
    (Sangster v. Paetkau (1998) 
    68 Cal.App.4th 151
    , 163.)
    The grant or denial of a new trial motion is reviewed for
    abuse of discretion. (Martine v. Heavenly Valley Limited
    Partnership (2018) 
    27 Cal.App.5th 715
    , 722 (Martine).) The
    court’s decision is reviewed on appeal from the judgment. (Code
    Civ. Proc. §§ 904.1, subd. (a)(2), 906; Walker v. Los Angeles
    County Metropolitan Transportation Authority (2005) 
    35 Cal.4th 15
    , 18; Hamasaki v. Flotho (1952) 
    39 Cal.2d 602
    , 608.) On an
    appeal from the order denying a new trial motion, the appellate
    court reviews the entire record, including evidence, in order to
    make an independent determination of whether the error was
    prejudicial. (Cal. Const., art. VI, § 13; Whitlock v. Foster Wheeler,
    LLC (2008) 
    160 Cal.App.4th 149
    , 158.) Appellant must
    affirmatively demonstrate error because it is his or her burden to
    overcome the presumption of correctness of the court’s ruling.
    (Martine, at p. 727.)
    12
    B.    Analysis
    1.     The Trial Court’s Evidentiary Rulings
    As explained above, the court sustained defendants’
    objections to certain portions of Raymond’s and Anthony’s
    declarations submitted in support of Raymond’s opposition to the
    summary judgment motion and all of Raymond’s and Brockway’s
    declarations submitted in support of Raymond’s motion for a new
    trial. In its written rulings for both motions, the court cited
    Benavidez v. San Jose Police Department (1999) 
    71 Cal.App.4th 853
    , 860-861 (Benavidez) and expressly stated Raymond could
    not rely on his declarations to contradict his prior admissions
    made during discovery.
    Because objections to the evidence Raymond discusses in
    his appellate briefs were sustained by the trial court, and
    Raymond has not challenged on appeal those evidentiary rulings,
    he has forfeited any claim of error. (See Arnold v. Dignity Health
    (2020) 
    53 Cal.App.5th 412
    , 420, fn. 5, citing Lopez v. Baca (2002)
    
    98 Cal.App.4th 1008
    , 1014-1015 [in absence of proper challenge
    to trial court’s evidentiary rulings, appellate court will consider
    all affected evidence to have been excluded].)
    Consequently, our review on appeal is limited to the
    admissible evidence and not evidence that was subject to well-
    taken objections. (See Code Civ. Proc. § 437c, subd. (c) [“[i]n
    determining if the papers show that there is no triable issue as to
    any material fact, the court shall consider all of the evidence set
    forth in the papers, except the evidence to which objections have
    been made and sustained by the court . . . .” (italics added)].)
    13
    2.    The Trial Court Did Not Commit Reversible Error By
    Granting Summary Judgment in Defendants’ Favor
    a.    Breach of contract
    In support of his contention that the court erred, Raymond
    argues the existence of a partnership or profit-sharing agreement
    is a disputed fact that could not be resolved on summary
    judgment. He asserts he maintained throughout his responses to
    interrogatory questions and requests for admissions he had a
    partnership or profit-sharing agreement with Michael.
    Similarly, he claims in his deposition testimony he had a verbal
    agreement to split profits with Michael. Raymond then insists
    such evidence, combined with his brother Anthony‘s declaration
    and the payments of two checks to him from Hoist, established
    the existence of a partnership. Raymond, therefore, contends the
    trial court committed reversible error by precluding him from
    “making statements in his opposition that the trial court found
    contradicted other statements made by [him] in discovery.”
    Raymond acknowledged no written agreement existed
    between the parties. Thus, the primary question is whether
    Raymond provided the court with sufficient evidence of the
    existence of an oral agreement concerning profit sharing. The
    prerequisites for establishing the existence of an agreement are
    the parties being capable of contracting, consenting to
    contracting, and providing sufficient consideration. (Civ. Code,
    § 1550.) The parties’ consent must be free, mutual, and
    communicated to each other. (Civ. Code, § 1565.) This mutual
    consent must be determined by objective, not subjective,
    considerations. “““‘Contract formation requires mutual consent,
    which cannot exist unless the parties “agree upon the same thing
    in the same sense.”’” [Citation.]” ““The manifestation of mutual
    consent is generally achieved through the process of offer and
    14
    acceptance.” [Citation.]” ““‘“Mutual assent is determined under
    an objective standard applied to the outward manifestations or
    expressions of the parties, i.e., the reasonable meaning of their
    words and acts, and not their unexpressed intentions or
    understandings.” [Citations.]’ [Citation.] ‘Where the existence of
    a contract is at issue and the evidence is conflicting or admits of
    more than one inference, it is for the trier of fact to determine
    whether the contract actually existed. . . .’”” (Pacific Corporate
    Group Holdings, LLC v. Keck (2014) 
    232 Cal.App.4th 294
    , 309.)
    In his opposition to the summary judgment motion,
    Raymond contends he did offer evidence of the existence of both a
    partnership and a profit sharing agreement. He points to
    declarations submitted by himself and others. As discussed,
    Code of Civil Procedure section 437c, subdivision (c), provides, in
    pertinent part, “[i]n determining if the papers show that there is
    no triable issue as to any material fact, the court shall consider
    all of the evidence set forth in the papers, except the evidence to
    which objections have been made and sustained by the court . . . .”
    (Code Civ. Proc., § 437c, subd. (c) (italics added).)
    Raymond repeatedly relies upon evidence to which
    evidentiary objections were sustained and disregards the impact
    of the court’s rulings in that regard. Raymond cannot rely upon
    those averments in his or Anthony’s declarations, to which the
    court sustained defendants’ objections, to show the existence of a
    triable issue. As discussed, Raymond does not argue the court
    abused its discretion with respect to its evidentiary rulings.
    “Summary judgment law . . . no longer requires a defendant
    moving for summary judgment to conclusively negate an element
    of the plaintiff’s cause of action. . . . [Citation.] Instead, a
    defendant may simply show the plaintiff cannot establish an
    essential element of the cause of action ‘by showing that the
    15
    plaintiff does not possess, and cannot reasonably obtain, needed
    evidence.’ [Citation.] Thus, . . . a defendant moving for summary
    judgment has the option of presenting evidence reflecting the
    plaintiff does not possess evidence to prove that element. . . .
    Under [this] approach, a defendant’s initial evidentiary showing
    may ‘consist of the deposition testimony of the plaintiff’s
    witnesses, the plaintiff’s factually devoid discovery responses, or
    admissions by the plaintiff in deposition or in response to
    requests for admission that he or she has not discovered anything
    that supports an essential element of the cause of action.’
    [Citation.] In other words, a defendant may show the plaintiff
    does not possess evidence to support an element of the cause of
    action by means of presenting the plaintiff’s factually devoid . . .
    responses from which an absence of evidence may be reasonably
    inferred. [Citation.]” (Leyva v. Garcia (2018) 
    20 Cal.App.5th 1095
    , 1102-1103.)
    Under the circumstances of this case, Raymond did not
    establish there was a genuine issue of material fact concerning
    the existence of an oral agreement between the parties. In his
    deposition testimony, Raymond admitted he never communicated
    to Michael his belief that a partnership and a profit sharing
    agreement existed. Although Raymond disavowed the
    admissions he made at his deposition and claims there were
    triable issues of material fact, he cannot rely on contradictions in
    his own testimony to create triable issues. (Benavidez, supra, 71
    Cal.App.4th at p. 861.)
    In the instant case, defendants met their initial burden by
    showing through admissions Raymond made in his deposition
    testimony that he was not in a partnership with Michael and no
    agreement for profit sharing with Michael existed. Defendants
    also demonstrated that Raymond did not possess evidence to
    16
    support his claims. Rather, Raymond believed a partnership and
    profit sharing agreement were in place, but he provided no
    evidence he ever told Michael he held this belief or that Michael
    otherwise shared that belief, which are critical elements for the
    formation of a contract. The absence of evidence supporting
    Raymond’s claims could be reasonably inferred from Raymond’s
    deposition testimony because such testimony was factually
    devoid of any evidence of the existence of a partnership or an oral
    profit sharing agreement. (Leyva v. Garcia, supra, 20
    Cal.App.5th at pp. 1102-1103.)
    Because there was no evidence there ever was a meeting of
    the minds or mutual consent that led to the formation of a
    partnership or profit sharing agreement as between Raymond
    and Michael, the court did not err in granting defendants’
    summary judgment motion with respect to the breach of contract
    cause of action.
    As we conclude the court correctly granted summary
    judgment in defendants’ favor on the basis that there was no
    genuine issue of material fact concerning the existence of a
    partnership or profit sharing agreement between the parties, we
    need not address Raymond’s other contentions relating to the
    breach of contract claim, including the issue of whether
    Raymond’s claims are barred by the applicable two-year statute
    of limitations.
    b.    Breach of fiduciary duty
    Raymond’s breach of fiduciary duty cause of action was
    predicated on his assertion that he and Michael were partners
    and on the basis that they are father and son. But Raymond’s
    contention in this regard also fails. First, Raymond did not
    demonstrate there was a triable issue of material fact concerning
    17
    whether a fiduciary relationship existed between him and
    Michael based on some partnership that was in place. A
    partnership is defined by statute as “the association of two or
    more persons to carry on as co-owners a business for profit . . .
    whether or not the persons intend to form a partnership.” (Corp.
    Code, § 16202, subd. (a).) A person is not a partner by virtue of
    receiving benefits from the business for services rendered or for a
    capital contribution; rather an essential element of a partnership
    involves the right of joint participation in the management and
    control of the business. (Kaljian v. Menezes (1995) 
    36 Cal.App.4th 573
    , 586.) Nor does receiving a share of the profits of
    a business as payment for services as an independent contractor
    makes an individual a partner. (Corp. Code, § 16202, subd.
    (c)(3)(b).) Moreover, Raymond admitted at his deposition that no
    partnership existed between him and Michael.
    Second, Raymond does not provide authority for his
    proposition that Michael owed him a fiduciary duty simply
    because Michael is his son. For that reason, this contention has
    been forfeited. (Allen v. City of Sacramento (2015) 
    234 Cal.App.4th 41
    , 52 [“When legal argument with citation to
    authority is not furnished on a particular point, we may treat the
    point as forfeited and pass it without consideration”].)
    Nonetheless, even on the merits, such a familial relationship does
    not automatically create fiduciary duties. (Briggs v. Nilson
    (1964) 
    226 Cal.App.2d 342
    , 346.)
    c.     Unjust enrichment/constructive trust
    Raymond’s unjust enrichment/constructive trust cause of
    action fails because he does not present a cogent legal argument
    with citations to authority and the record that supports this
    claim. As such, his contention that the court erred in entering
    18
    summary judgment on this claim is forfeited. (Allen v. City of
    Sacramento, supra, 234 Cal.App.4th at p. 52.)
    d.     Money had and received
    As explained above, the claims underlying Raymond’s
    cause of action for money had and received were properly subject
    to summary disposition. When a common count for money had
    and received “is used as an alternative way of seeking the same
    recovery demanded in a specific cause of action, and is based on
    the same facts, the common count is demurrable if the cause of
    action is demurrable.” (McBride v. Boughton (2004) 
    123 Cal.App.4th 379
    , 394.)
    Therefore, in the instant case, Raymond’s separate common
    count for money had and received must also fail, and we uphold
    the grant of summary judgment as to it.
    3.    Raymond’s Motion for New Trial
    Raymond argues the court erred because it did not accept
    the newly discovered evidence he presented and denied his
    motion for new trial.
    Code of Civil Procedure section 657 provides a judgment
    may be vacated based on newly discovered evidence if the
    involved party could not have, with reasonable diligence,
    discovered and produced the evidence at the trial. Raymond
    offered as the newly discovered evidence supporting his motion
    for a new trial what he claimed to be a draft settlement
    agreement between himself and defendants that was drafted
    before Raymond filed his complaint and Brockway’s declaration.
    In his declaration, Brockway stated he partnered with
    Raymond in forming West Coast. He added Raymond supervised
    Michael’s work. Michael had urged Raymond to buy West Coast,
    19
    but Raymond declined, and instead Brockway and Raymond split
    up West Coast’s accounts. Brockway then agreed to give
    Raymond and Michael many of West Coast’s accounts.
    Raymond admitted he was aware of the draft settlement
    agreement nearly a year before he filed the subject lawsuit. Also,
    in response to written discovery propounded by defendants,
    Raymond had identified Brockway, as a witness who would
    support his claims. Therefore, Raymond had ample time to
    secure Brockway’s declaration for purpose of opposing the
    summary judgment motion. In fact, Raymond filed his motion for
    new trial on April 27, 2018. But Brockway signed his declaration
    on January 15, 2018, and the document states it is in support of
    Raymond’s mandatory settlement conference scheduled to take
    place on January 25, 2018.
    Even if the submission of Brockway’s declaration were
    considered timely, given the substance of Brockway’s statements,
    there was no indication they were material because they do not
    establish that a profit sharing agreement, let alone a
    partnership, existed between Raymond and Michael.
    Further, the court has discretion to admit or exclude
    evidence, and it sustained defendants’ objections to Raymond’s
    and Brockway’s declarations in their entirety. In this instance,
    Raymond offers no argument that the court, by excluding the
    declarations, exercised its discretion in an arbitrary, capricious,
    or patently absurd manner that resulted in a miscarriage of
    justice.5
    5     Raymond asserts alternative grounds for a new trial are
    insufficiency of the evidence to justify a decision or the decision is
    contrary to law. However, Raymond’s deposition testimony
    established that no oral agreement to share profits and no
    20
    As such, we conclude the court properly exercised its
    discretion in denying the motion for a new trial.
    DISPOSITION
    The orders granting defendants’ motion for summary
    judgment and denying Raymond’s motion for a new trial and the
    judgment are affirmed. Defendants to recover their costs on
    appeal.
    RICHARDSON, J.
    We concur:
    PERLUSS, P. J.
    FEUER, J.
    partnership existed, and the Benavidez case dictates that
    Raymond cannot create triable issues of fact by later presenting
    statements contradicting those admissions.
    
    Judge of the Los Angeles Superior Court, assigned by the
    Chief Justice pursuant to article VI, section 6 of the California
    Constitution.
    21
    

Document Info

Docket Number: B291105

Filed Date: 11/17/2020

Precedential Status: Non-Precedential

Modified Date: 11/17/2020