Rodriguez v. Nam Min Cho
236 Cal. App. 4th 742
| Cal. Ct. App. | 2015Background
- Rodriguez sued Cho and Reliable Building Maintenance alleging unpaid overtime, retaliation, wrongful termination in violation of public policy, and PAGA penalties; complaint sought damages "to be proved at trial" and a $10,000 statutory civil penalty.
- A statement of damages served with the summons listed large dollar amounts (e.g., $1,000,000 emotional distress, $50,000 lost earnings, punitive $2,000,000), but the complaint itself did not specify a total damage figure aside from the $10,000 civil penalty.
- Process server filed proofs of service: personal service on Reliable's agent and substituted service on Cho at his business by serving an office manager and mailing the papers. Defaults were entered against both defendants.
- Rodriguez obtained a default judgment totaling $129,673.48 based on her prove-up, including back pay, interest, attorney fees, and general damages.
- Over two years later Cho moved to set aside the default judgment, arguing improper/fraudulent service and that the judgment awarded damages beyond what was demanded in the complaint; the trial court denied relief. Rodriguez later filed an acknowledgment of satisfaction of judgment.
- On appeal the court upheld the trial court's refusal to set aside the judgment on extrinsic-fraud/equity grounds but held the default judgment was void because it exceeded the damages actually demanded in the complaint and remanded with directions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether service was improper/extrinsic fraud justifying equitable relief from default | Rodriguez relied on process server's declarations showing substituted service and mailed copies; argued service presumptively valid | Cho argued he never received the papers, process server's declarations were false, and he was deprived of opportunity to defend | Court held Cho failed to rebut presumption of valid service or show extrinsic fraud; equitable relief denied (no abuse of discretion) |
| Whether default judgment is void because it exceeded damages demanded in the complaint | Rodriguez argued she could rely on the statement of damages and was not required to state amounts in complaint | Cho argued the action was not a "personal injury" or wrongful-death action subject to the statement-of-damages rule, so judgment must be limited to amounts in complaint | Court held wrongful-termination (public policy) action is not an "action to recover damages for personal injury" under §425.11; default judgment exceeded the complaint and is void; reversed and remanded with option to accept reduced judgment or amend complaint |
Key Cases Cited
- Gibble v. Car-Lene Research, Inc., 67 Cal.App.4th 295 (equitable relief for extrinsic fraud requires meritorious defense, excuse, and diligence)
- American Express Centurion Bank v. Zara, 199 Cal.App.4th 383 (registered process server's declaration creates presumption of valid service; substitute service rules)
- Greenup v. Rodman, 42 Cal.3d 822 (default judgment greater than amount demanded is void)
- Levine v. Smith, 145 Cal.App.4th 1131 (default judgment limited to amount pled when action is not a personal-injury/wrongful-death case)
- Holmes v. General Dynamics Corp., 17 Cal.App.4th 1418 (wrongful-termination action primarily involves economic/property interests, not "personal injury" for comparable statutes)
- Barton v. New United Motor Manufacturing, Inc., 43 Cal.App.4th 1200 (discussion of wrongful termination protecting personal rights but not determinative for §425.11 purposes)
