Bankers V Perez
Bankers V Perez
SUPERIOR C O U R T OF CALIFORNIA
C O U N T Y OF SAN BERNARDINO
APPELLATE DIVISION
247 W E S T THIRD STREET
SAN BERNARDINO, CA 92415-0063
(909) 521-3574
Appellant
v.
CLARISSA PEREZ
Respondent
Vehicle Code section 10652.5 and California Civil Code section 3068 et seq. to address
towing, repair, storage liens, and the various remedies available to the legal owner and
the garageman. Application of these rules, according to their plain terms and the manifest
legislative intent, resolves this case. Respondent failed to provide adequate notice to the
legal owner Appellant within the time period prescribed by Vehicle C o d e section
10652.5. California Civil Code section 3070 lists the consequences for lack of
towed" resulting in the forfeiture of Respondent's lien for towing and storage, and
The legislature placed strict, specific requirements on the manner of service of the
written notice that must be given to the legal owner of the vehicle in order to have an
enforceable lien for towing, repairs, and/or storage. Vehicle Code section 10652.5
subdivision (a) requires service of a notice for towing and storage "by certified mail,
return receipt requested" while California Civil Code section 3072 subdivision (b)
requires a different notice of lien sale "by certified mail with return receipt requested or
Perez was served on February 27, 2012 and failed to respond. O n July 3 1 , default was
entered (C.T. 27-28.) involving Defendant Clarissa Perez. Testimony w a s given ( R . T . 11-
12.) and the ledger (C.T. 160-162.) was admitted into evidence. However, the Trial
Court's judgment failed to address Defendant Clarissa Perez. Given California's adoption
of the one final judgment rule, the Trial Court erred by failing to enter default judgment
against Defendant Clarissa Perez. A s such, the Trial Court's decision should also be
overturned.
O n August 22, 2010 Defendant Clarissa Perez entered into a retail installment
contract for the purchase of a used 2001 H o n d a Civic L X which subsequently was
assigned by the used car dealer to Appellant. Defendant Clarissa Perez was notified of the
assignment (R.T. 5.) (C.T. 138-143.). Subsequent to the assignment, title was perfected in
A s a result of the assignment of the retail installment contract and the perfection
of title, Appellant at all times relevant hereto was the legal owner pursuant to Vehicle
Respondent Big Z Auto Works, Inc. is a tow company w h o pursuant to the record
took possession of the subject 2001 Honda Civic L X on December 25, 2011 and
subsequently sent a Notice of Pending Lien Sale to Appellant pursuant to California Civil
Code section 3072 on December 27, 2011 (R.T. 59.) (C.T. 152.).
The Notice of Pending Lien Sale was the first written notice received by
Appellant from Respondent (R.T. 7.). Appellant timely opposed the attempted lien sale
(R.T. 23.).
Respondent's only written notice informing Appellant of towing and storage fees,
sent by certified mail, return receipt requested on January 26, 2012, was sent after
Appellant had opposed the attempted lien sale (R.T. 59-60.).
plaintiff m a y apply to the clerk of the court for entry of default w h e n defendant fails to
answer the complaint in "an action arising upon contract or judgment for the recovery of
served and no response was filed. (Cal. C o d e Civ. Proc., section 585 subd.(a)). In a
typical case, a "no-answer default," the plaintiff m a y seek entry of default after the
defendant fails to answer within 30 days. See id. Further, the clerk's entry of default is an
interlocutory order. California C o d e of Civil Procedure section 585 also provides that the
court m a y set aside an entry of default "for good cause shown.'" G o o d cause is generally
established by examining three criteria: "(1) whether the default was willful; (2) whether
the moving party has presented a meritorious defense; and (3) whether setting aside the
default would prejudice the party w h o secured the entry of default.'" If the entry of
default is not set aside, the complaint is deemed admitted. A s a result, defendant
confesses truth of all material allegations in complaint. See, Fitzgerald v. Herzer (1947)
Because default was entered against Defendant Clarissa Perez on July 31, 2014,
the Trial Court erred in rendering judgment in favor of defendant on the evidence before
the court, consisting of the complaint in the original action, the proof of service, and the
Corp. v. O. A. Graybeal Co., 41 Cal.App. 1, 5 [105 P.2d 996]; Strong v. Shatto, 201 Cal.
555, 558. Further, a judgment by default is as conclusive as to the issues tendered by the
complaint as if it had been rendered after answerfiledand trial had on allegations denied
by the answer. (Maddux v. County Bank, 129 Cal. 665, 667 [62 P . 264, 79 [*132]
Am.St.Rep. 143]; Morenhut v. Higuera, 32 Cal. 289, 295.) Such a judgment is res
judicata as to all issues aptly pleaded in the complaint and defendant is estopped from
(Horton v. Horton, 18 Cal.2d 579, 585). Consequently, judgment should have been
Perez has not set aside the default, default judgment should be entered.
in an action, and that is one which in effect ends the suit in the court in which it is
entered, and finally determines the rights of the parties in relation to the matter in
controversy." (San Joaquin County Dept. of Child Support Services v. Winn (2008) 163
Cal.App.4th 296, 300, 77 Cal.Rptr.3d 470, 472.) Under the "onefinaljudgment" rule, an
appeal will only lie from thefinaljudgment; not from intermediate rulings. (Kinsmith
Financial Corp. v. Gilroy (2003) 105 Cal.App.4 th 447, 452; Maier Brewing Co. v. Pacific
Nat. Fire Ins. Co. (1961) 194. The California Supreme Court's ruling in Morehart v.
County of Santa Barbara, (1994) 7 Cal.4th 725, ended the practice of deeming causes of
action "severed" from the rest of the case. Also, the California Supreme Court recently
handed d o w n its opinion in Kurwa v. Kislinger, 204 Cal. A p p . 4 t h 21, confirming that
section 904.1 subdivision (a), to be appealable a judgment must dispose of all causes of
Moreover, the Court in Morehart v. County of Santa Barbara enumerated the rationale
the sound reasons for the one final judgment rule is the obvious fact that
piecemeal disposition and multiple appeals tend to be oppressive and
costly. Interlocutory appeals burden the courts and impede the judicial
process in a number of ways: (1) they tend to clog the appellate courts
with a multiplicity of appeals; (2) early resort to the appellate courts tends
to produce uncertainty and delay in the trial court; (3) until a final
judgment is rendered the trial court m a y completely obviate an appeal by
altering the rulings from which an appeal would otherwise have been
taken; (4) later actions by the trial court m a y provide a more complete
record which dispels the appearance of error or establishes that it w a s
harmless; and (5) having the benefit of a complete adjudication will assist
the reviewing court to remedy error (if any) by giving specific directions
rather than remanding for another round of open-ended proceedings. See
id. at 813.
In the instant case, the entry of default terminates the Defendant Clarissa Perez's
right to participate in this litigation. In addition, she admits all facts well pleaded and m a y
not object to default judgment awarding damages that evidence will support. Beall v.
Munson (1962) 204 Cal A p p 2d 396. B y failing to address one of the defendants in its
judgment, the Trial Court failed to "dispose of all the causes of action pending between
the parties." (Cal. Code Civ. Proc., section 904.1, subd. (a); Morehart v. County of Santa
costs were incurred. Given California's strict adoption of the onefinaljudgment rule,
Appellant respectfully requests that the Trial Court's decision be reversed and default
(a) Whenever the n a m e and address of the legal owner of a motor vehicle
is k n o w n , or m a y be ascertained from the registration records in the
vehicle or from the records of the Department of Motor Vehicles, no fee or
service charge m a y be imposed upon the legal owner for the parking and
storage of the motor vehicle except as follows: (1) T h e first 15 days of
possession and (2) following that 15-day period, the period commencing
three days after written notice is sent by the person in possession to the
legal owner by certified mail, return receipt requested, and continuing for
a period not to exceed any applicable time limit set forth in section 3068
or 3068.1 of the California Civil C o d e .
(b) The costs of notifying the legal owner m a y be charged as part of the
storage fee w h e n the motor vehicle has been stored for an indefinite period
of time and notice is given no sooner than the third day of possession. This
subdivision also applies if the legal owner refuses to claim possession of
the motor vehicle.
(c) In any action brought by, or on behalf of, a legal owner of a motor
vehicle to which subdivision (a) applies, to recover a motor vehicle
alleged to be withheld by the person in possession of the motor vehicle by
demanding storage fees or charges for any number of days in excess of
that permitted pursuant to subdivision (a), the prevailing party shall be
entitled to reasonable attorney's fees, not to exceed one thousand seven
hundred fifty dollars ($1,750). The recovery of those fees is in addition to
any other right, remedy, or cause of action of that party. [emphasis added]
(a) (1) Every person has a lien dependent upon possession for the compensation
to which the person is legally entitled for towing, storage, or labor associated with
recovery or load salvage of any vehicle subject to registration that has been
authorized to be removed by a public agency, a private property owner pursuant
to Section 22658 of the Vehicle C o d e , or a lessee, operator, or registered owner of
the vehicle. The lien is deemed to arise on the date of possession of the vehicle.
Possession is deemed to arise w h e n the vehicle is removed and is in transit, or
w h e n vehicle recovery operations or load salvage operations have begun.
(a) Whenever the possessory lien upon any vehicle is lost through trick,
fraud, or device, the repossession of the vehicle by the lienholder revives
the possessory lien but any lien so revived is subordinate to any right, title,
or interest of any person under any sale, transfer, encumbrance, lien, or
other interest acquired or secured in good faith and for value between the
time of the loss of possession and the time of repossession.
V. STANDARD OF REVIEW
According to the "plain meaning" rule, Courts look to the terms of the statute for
construction. "It is said that w h e n the meaning of the language is plain w e are not to
resort to evidence in order to raise doubts. That is rather an axiom of experience than
the terms of Vehicle C o d e section 10652.5 and California Civil C o d e section 3070,
In the instant case, there are express limits o n the duration of storage that can be
charged by lien holders. Specifically, California Civil C o d e 3068.1 limits public agency
and private tows to a certain n u m b e r of days chargeable for storage. A vehicle under
$4000 in value shall not accrue storage charges beyond the 15th day unless lien sale
proceedings have commenced. If the lien isfiledby the 15th day of possession, the
storage is limited to 60 days. This would include a required notice to be signed by the
legal owner before the 15th day of possession. See Vehicle C o d e section 10652.5.
day of possession if storage fees are charged, and if the legal owner is not timely and
properly notified, no additional storage m a y be charged the legal owner (Veh. Code,
§10652.5 subd.(a).).
Further, if the tow company fails to properly notify the legal owner within the
subdivision (a), then under California Civil Code section 3070 subdivision (2)(A), the
tow company is guilty per se of "improperly causing a vehicle to be towed." A s such, the
"plain meaning" of the terms of Vehicle Code section 10652.5 and California Civil Code
sections 3068.1 and 3070, coupled with the purpose and legislative background noted in
A B 1 5 7 5 adequately represents the California legislature's intent to set forth the specific
requirements for the creation of towing and storage liens, revival of lost liens, and the
forfeiture of liens.
extrajudicially enforce his lien on a vehicle for which repair charges had not been paid.
See Adams v. Department of Motor Vehicles (1974) 11 Cal. 3d 146. The court, however,
condoned the garageman's temporary retention of the vehicle pending judicial resolution
of the underlying dispute concerning the repair bill. See id. The California Legislature
responded to the Supreme Court's ruling with legislation aimed at expediting the lien
Prior to 1969, creditors enjoyed both legislative and judicial approval of summary
prejudgment remedies. However, in that year the United States Supreme Court
established in Sniadach v. Family Finance Corp, 395 U . S . 337 (1969), that a debtor must
be afforded, with limited exceptions, the procedural due process requisites of notice and
hearing before his property m a y be seized. Prior to its holding in Sniadach, the Supreme
seizures, viewing the opportunity for a later decision on the merits as sufficient protection
In 1974, the California Supreme Court applied the Sniadach principles in Adams
Adams, petitioner, vehicle owners, sought a writ of m a n d a m u s in the state supreme court
and contended that the garageman's labor and materials lien provided by California Civil
Code sections 3068 subdivision (a), 3071-3074 violated their due process rights. Id. at
149 The court noted that unlike the statutorily created garageman's lien, a possessory
lienholder had no power of sale under the c o m m o n law. See id. at 151. Furthermore, the
sale process was administered, in part, by the Department of Motor Vehicles. The Court
also noted the lack of the availability of an accelerated hearing process to resolved
contested lien claims and concluded that the lien statutes violated petitioners' due process
Department of Motor Vehicles not to process or otherwise act on application for transfer
of registration pursuant to any lien sale conducted under those statutes. Id. Preliminarily,
the court decides that the state's involvement in the imposition and enforcement of a
garage m a n ' s lien through the Department of Motor Vehicles constitutes state action and
requirements were found. Id. at 157. Accordingly, the Supreme Court voided the cited
civil sections o n the grounds that part of the garage m a n ' s lien law deprives owners of
due process of law in that they permit involuntary sale and transfer of a vehicle without
affording the owner an opportunity for hearing. Id. at 157. Notably, the California
Supreme Court stated "[i]f the owner remains unwilling or unable to pay the amount
claimed, the parties are relegated to such remedies as are provided by c o m m o n law or
Similarly, here, in order to protect the rights of the legal owner, the California
Legislature has imposed specific strict notice requirements on tow companies. California
Civil Code section 3070 specifically enumerates the legal consequences for failure to
comply with Vehicle Code 10652.5. Respondent's failure to properly and timely serve its
demand for storage fees covering a period of time in excess of that permitted pursuant to
withheld by the person in possession of the motor vehicle by demanding storage fees or
charges for any number of days in excess of that permitted pursuant to subdivision (a),
the prevailing party shall be entitled to reasonable attorney's fees, not to exceed one
any other right, remedy, or cause of action of that party." A s such, given the legislative
intent to limit and at times extinguish garagemen's liens can be divined from the Senate
Judiciary Committee's report titled "Vehicle Liens," the Trial Court erred in finding for
Respondent.
The Senate Judiciary Committee's Bill Analysis of Assembly Bill 1575 evinces
the California Legislature's intent in enacting California Civil C o d e section 3070. The
bill is aptly titled "Vehicle Liens." Furthermore, in the description of Assembly Bill
1575's analysis, the Senate Judiciary Committee states "[t]his bill would list vehicle
mechanics liens to persons registered with the Bureau Automotive Repair prevent a
lienholder from removing parts after work or services have been completed; require a lien
to be exhausted upon failure of the lienholder to provide a work order and authorization
for service or repairs; and clarify limitations on storage liens." (emphasis added). ( A B
Additionally, "California has long guaranteed the right of mechanics and other
laborers to have a lien on the property upon which they have labored or furnished
material towards." Id. "The state's original mechanics lien law w a s enacted by the state's
first legislative session in 1850. Adopted in 1879, Article X I V , section 3 of the California
Analysis, citing Cal. Civ. Code, §3067 et seq.) "Those provisions confer the right to
alien, dependent upon possession, for compensation to which the person is legally
entitled, subject to certain limitations and procedures for the sale of vehicles subject to
liens. Specific to this bill, lienholders are specifically prohibited from charging legal
owners in excess of certain amounts for the release of vehicles absent notice and written
consent by that owner prior to commencing any work, services, storage, safekeeping, or
identifies the existing law and the effects of A B 1575. Specifically, "[t]his bill would
specifically subject lien provisions for the care, storage or safekeeping of a vehicle, or
rental of a parking space to the above restrictions, limiting charges for parking or storage
The bill analysis of A B 1575 emphasizes the fact that the California Legislature
was concerned about lienholders charging legal owners in excess of certain amounts for
the release of vehicles absent notice and written consent by that owner prior to
commencing storage of that vehicle. Furthermore, by noting that the bill would limit the
charges for storage that m a y be charged absent notice to legal owner, the California
Legislature appreciated that such notice is necessary to protect legal owner's procedural
due process rights. See Adams v. Department of Motor Vehicles. supra, 11 Cal. 3d at 157.
Because the legislative intent in amending the California Civil C o d e section can be
divined from A B 1575, any failure to send proper and timely notice directly conflicts
with the terms, legislative history, and legislative intent of such amendments. A s such,
the Trial Court's failure to find that Respondent has "improperly caused" a vehicle to be
towed resulting in the "forfeiture" of any towing and storage lien is an appropriate ground
VIII. CONCLUSION
the statute itself rather than simply a change in the thinking of the judiciary with respect
to c o m m o n law concepts which are properly under its control."" Froud v. Celotex Corp.,
456 N . E . 2 d 131, 137 (Ill. 1983). A s a result, courts have been reluctant to preempt the
contract or property rights where "stare decisis concerns are at their acme." Khan, 118
S.Ct. at 284. In these circumstances, stare decisis acts as a policy of judicial restraint in
areas traditionally reserved for legislative action. A s such, the principles of stare decisis
and "plain meaning" underscore the Trial Court's error in failing to find that
Elder Jr., counsel for Appellant hereby certifies and represents that I assisted in the
preparation of this Opening Brief using Microsoft W o r d 2010, which contains a word
count function. I used that word count function to calculate the number of words used in
said Brief to be 4,174, excluding this certification, tables, and proof of service.
I a m a citizen of the United States and an employee in the County of Orange, State of California.
I a m over the age of eighteen years and not a party to the within action: m y Business address is 3818 E .
La Palma Avenue, Anaheim, California, 92807. O n August 28, 2014, I served upon the following parties
in this action:
SUPREME C O U R T OF CALIFORNIA
350 MCALLISTER STREET
SAN FRANCISCO, CALIFORNIA 94102-4797
www.courts.ca.gov/24590.htm
Copies of the document(s) described as: APPELLANT'S OPENING BRIEF
[X] B y Mail I placed a true copy of each documents listed herein in a sealed envelope, addressed as
indicated herein, and caused each such envelope with postage thereon fully prepaid, to be placed in the
United States Mail at Anaheim, California.
[XX] B y Electronic Service by electronically mailing a true and correct copy through F O E L L &
E L D E R ' S electronic mail system from [email protected] to the email addresses listed above.
I declare, under penalty of perjury, under the L a w s of the State of California that the foregoing is
ERIN O. OLSCHEWSKE