Wednesday, July 24, 2019

Cole v. Hammond (Cal. Ct. App. - July 24, 2019)

Check out the facts in this one.  Which seem like a huge procedural clusterfart (pardon my French):

"In a prior action, Neil Gieleghem and respondent Gregory Cole, both attorneys, obtained a $500,000 judgment against Anthony Sheen, a landlord, based on unpaid fees for legal services they rendered to Sheen. In satisfaction of that judgment, Cole and Gieleghem obtained an assignment of rent from Sheen for a residential property.

Appellants Betty and Ruth Hammond (the Hammonds) were Sheen’s tenants. Cole and Gieleghem demanded that the Hammonds pay their rent directly to them pursuant to the assignment. The Hammonds refused, and Cole sued, alleging breach of contract and related claims. Gieleghem appeared as Cole’s attorney in the lawsuit.

A few months after the initiation of the lawsuit in 2011, the Hammonds began paying their rent to Cole and Gieleghem. After the parties conducted some initial discovery, the case languished for several years. In January 2018, the Hammonds moved for mandatory dismissal of the action for failure to bring the case to trial within five years, pursuant to Code of Civil Procedure section 583.360. A mandatory dismissal would be considered a determination on the merits entitling the prevailing party to attorney fees under Civil Code, section 1717. However, at the hearing on the motion, Cole sought to voluntarily dismiss the case without prejudice pursuant to section 581, subdivision (b)(1). The court granted Cole’s oral motion and dismissed the case. The court subsequently denied the Hammonds’ motion to vacate the dismissal. This appeal followed.

The parties dispute whether this appeal is timely. We conclude that it is. Substantively, the Hammonds contend the trial court erred in granting Cole’s motion for voluntary dismissal, arguing that they had the right to a mandatory dismissal and the resulting attorney fees. We agree and therefore reverse and remand for further proceedings."

The lesson is:  If you're going to sue, sue.