Lead Opinion
Opinion
Appellant Carlos McClatchy is the beneficiary of an irrevocable trust that was administered by a now-deceased partner of respondent law firm Coblentz, Patch, Duffy & Bass, LLP (the Firm). This appeal is taken from an order granting the Firm’s motion to quash service of an amended petition seeking damages for the alleged mismanagement of that trust. (Code Civ. Proc., § 904.1, subd. (a)(3).)
I. BACKGROUND
William Coblentz was a partner in the Firm and died in 2010. He served for many years as a trustee for the Trust for the Primary Benefit of James B. McClatchy dated November 15, 1974 (the Trust), before resigning in 2009. Appellant is one of two income beneficiaries of the Trust.
On July 2, 2014, appellant filed an amended petition substituting the Firm as Doe No. 2. The amended petition alleged that after reading a Securities and Exchange Commission (SEC) filing dated April 24, 2004, appellant became aware that Coblentz’s actions as trustee had been undertaken in his capacity as a partner in the Firm, making the Firm vicariously liable for those actions.
The Firm responded with a motion to quash service of the summons and additionally filed a demurrer and motion to strike the punitive damages allegation. (§§ 418.10, subd. (a)(1), 430.10, 435.) In the motion to quash, the Firm argued appellant was not entitled to use the Doe defendant procedure under section 474 because he knew the Firm’s identity and the facts allegedly giving rise to its liability when the original petition was filed. In the demurrer, the Firm argued appellant’s claims were time-barred under the relevant statutes of limitations.
The trial court granted the motion to quash and issued an order stating, “Petitioner knew all the relevant facts from which he now draws his conclusions about the law firm’s involvement prior to filing the [original] petition.” It found the demurrer to be moot in light of the ruling on the motion to quash.
II. DISCUSSION
Section 474 allows a plaintiff who is ignorant of a defendant’s identity to designate the defendant in a complaint by a fictitious name (typically, as a “Doe”), and to amend the pleading to state the defendant’s true name when the plaintiff subsequently discovers it.
“Ignorance of the facts giving rise to a cause of action is the ‘ignorance’ required by section 474, and the pivotal question is, ‘ “did plaintiff know facts!” not “did plaintiff know or believe that [he] had a cause of action based on those facts?” ’ ” (General Motors Corp. v. Superior Court (1996)
Appellant alleged in his amended petition that Coblentz was acting on behalf of the Firm when he performed his duties as trustee, and that he (appellant) did not become aware of that fact until after he filed the original petition, when he saw an SEC filing in which Coblentz had used the address of his law firm and had indicated he was a partner in the Firm.
Our conclusion finds support in Hazel, supra,
Similarly, appellant knew of the professional relationship between Coblentz and the Firm when he filed his original petition, and was aware that Coblentz had used the Firm’s office and letterhead when handling the affairs of the Trust. The trial court could reasonably conclude the SEC document “discovered” by plaintiff after he filed his original petition did not add to or subtract from the relationship between Coblentz, the Firm and the Trust as it was understood by appellant. Appellant notes that after the amended petition was filed, he learned through discovery that (1) the Firm’s legal malpractice insurance policy covered Coblentz’s actions as a trustee, and (2) Coblentz had been exempted from a written Firm policy that generally prohibited lawyers in the Firm from serving as trustees. But these facts do not tend to show Coblentz was acting on behalf of the firm when he engaged in his duties as a trustee.
Appellant argues the trial court did not apply the appropriate legal standard in assessing his ignorance under section 474 because it focused on whether
In support of his claim, appellant cites language in McOwen v. Grossman (2007)
While we would agree with appellant’s assertion regarding the lack of liability flowing from the partnership relationship in and of itself, appellant ignores the evidence presented by the Firm demonstrating that appellant also knew Coblentz had used the Firm’s business address and offices when carrying out his duties on behalf of the Trust. Whether or not these additional actions by Coblentz would establish the Firm’s liability for Coblentz’s actions as trustee, the SEC filing on which appellant relies in support of the substitution under section 474 is simply more of the same. Nothing in McOwen, supra,
In his reply brief, appellant makes explicit an argument that was only implicit in his opening brief, namely, that he is entitled to invoke section 474 because the facts, including those he learned after filing the original petition, “fell far short of facts that would ‘cause a reasonable person to believe that liability was probable.’ ” In other words, because appellant has never been in possession of facts making it probable that Coblentz was acting on behalf of
Appellant also argues the trial court “exceeded the relief requested” in the motion to quash by dismissing the accompanying demurrer as moot. He claims this aspect of the court’s ruling “had the practical effect of sustaining the demurrer, or finding that the statute of limitations had run, without ever addressing that issue.” We are not persuaded.
Improper service of a defendant under section 474 may be attacked by a motion to quash. (Optical Surplus, supra, 228 Cal.App.3d at pp. 782-783 [trial court is required, as a matter of law, to grant motion to quash service of summons when party is wrongly served as Doe defendant].) “If the terms of . . . section 474 have not been complied with, the purported defendant has not been named as such in the complaint. A service upon one not named in a complaint does not confer jurisdiction to proceed upon the complaint against him, and a motion to quash is proper.” (Maier Brewing Co. v. Flora Crane Service, Inc. (1969)
The effect of the order granting the Firm’s motion to quash was that the Firm was not named in the amended petition and was not a party to the litigation. The Firm’s demurrer became moot at that point because the court was not capable of granting relief to either appellant or the Firm. (See Wilson & Wilson v. City Council of Redwood City (2011)
We observe that the order granting the motion to quash does not necessarily end the Firm’s involvement in this litigation. The trial court did not, as appellant asserts, dismiss the Firm from the action. A motion to quash service challenges only the lack of jurisdiction over the person and, when ruling on such a motion, the trial court is not permitted to determine the merits of the complaint. (Nelson v. Horvath (1970)
III. DISPOSITION
The order granting the motion to quash is affirmed. Costs on appeal are awarded to respondent.
Notes
Further statutory references are to the Code of Civil Procedure unless otherwise indicated.
Section 474 provides: “When the plaintiff is ignorant of the name of a defendant, he must state that fact in the complaint, . . . and such defendant may be designated in any pleading or proceeding by any name, and when his true name is discovered, the pleading or proceeding must be amended accordingly ...."’
The amended petition filed by appellant included the following allegations in support of the Film’s liability and its substitution in as a party under section 474: “35. PETITIONER is informed and believes and thereupon alleges that William Coblentz served as TRUSTEE in his capacity as a partner and managing agent of the COBLENTZ LAW FIRM. PETITIONER is further informed and believes and thereupon alleges that William Coblentz’s service as TRUSTEE was undertaken as an incident of the COBLENTZ LAW FIRM’S legal representation of the McClatchy family and in the ordinary course of the COBLENTZ LAW FIRM’S business. The COBLENTZ LAW FIRM is accordingly liable as a principal for the breaches of trust and other wrongdoing of its partner William Coblentz as alleged herein. [¶] 36. After the filing of this action. PETITIONER discovered that on or about April 24. 2004. William Coblentz signed and caused to be filed a form SC 13D/A pursuant to the federal securities laws in his capacity as a TRUSTEE of the TRUST. . . . [¶] 37. In this 4/24/2004form 13D/A filing in his capacity as TRUSTEE. William Coblentz stated: ‘This statement is filed on behalf of William K. Coblentz. a United States citizen, whose business address is One Ferry Building. Suite 200. San Francisco. California. 94111. William K. Coblentz is an attorney at law and senior law partner in the law firm (professional corporation) of Coblentz. Patch. Duffy & Patch. ’ [¶] 38. One Ferry Building. Suite 200. San Francisco. California 94111 is (and was as of 4/24/2004) the address of the COBLENTZ LAW FIRM.'’ (Italics added.)
In his opening brief, appellant asserts the statute of limitations had not run on at least some of his claims against the Firm as of the time the amended petition was filed under section 474.
Concurrence Opinion
Concurring.—I concur fully in the judgment of affirmance. I write separately only to respond more directly to appellant Carlos McClatchy’s argument that he had no duty to substitute the firm as a named defendant under Code of Civil Procedure section 474 (section 474) because he lacked facts causing him to believe the firm’s liability is “probable.”
Appellant’s September 19, 2012 “Petition for Relief from Breach of Trust” sought damages for alleged mismanagement of an irrevocable trust of which he is a beneficiary. The petition named as respondents William Coblentz and other former trustees of the trust. It also sought relief from certain unidentified “Doe” respondents, alleging appellant was “ignorant of the true names and capacities of the Respondents named herein as Does 1 through 20 . . . .” Almost two years later, appellant filed an amended petition and sought to use section 474 to substitute the firm as Doe No. 2. The trial court granted the firm’s motion to quash service of the summons, finding appellant “knew all the relevant facts from which he now draws his conclusions about the . . . [firm’s] involvement prior to filing the petition.” On appeal, we ask only “whether substantial evidence exists to warrant the trial court’s finding.” (Wallis v. Southern Pac. Transportation Co. (1976)
As relevant here, section 474 provides, “When the plaintiff is ignorant of the name of a defendant, he must state that fact in the complaint, . . . and
Appellant contends it is “irrelevant” that he knew the identity of the firm and that Coblentz was a partner in the firm during the time of the alleged breach of trust. While this knowledge is not irrelevant, I agree that knowledge of the firm’s name and identity is not dispositive. The question is what additional knowledge will foreclose appellant’s right to use section 474 and the relation back doctrine to avoid the bar of the statute of limitations.
Appellant argues the test is whether, in addition to knowing the firm’s identity and the fact that William Coblentz was a partner in the firm, he “also knew of facts making it probable that the Coblentz Firm was liable for the acts and omissions of Mr. Coblentz as Trustee.” As support for this argument, appellant cites three cases, but the relevant language in all of them is taken directly from Dieckmann v. Superior Court (1985)
Section 474 was enacted in 1872 and last amended in 1955. Since that time, cases have consistently construed the statute as permitting a plaintiff to delay suing persons or entities whose identity is known so long as the plaintiff remains “ignorant of the facts giving him a cause of action against [the defendant].”
These cases show that Dieckmann s formulation of the standard—which would allow a plaintiff to delay substituting a defendant’s true name until the
In my view, appellant could not wait to name the firm until he had “knowledge of sufficient facts to cause a reasonable person to believe liability is probable.” (Dieckmann, supra,
It is evident the trial court applied the correct standard here when it found appellant “knew all the relevant facts from which he now draws his conclusions about the . . . [firm’s] involvement prior to filing the petition.” This is simply another way of saying appellant already knew of the existence “ ‘the facts giving him a cause of action against the [firm] ....’” (Marasco, supra,
Other cases prior to Dieckmann articulate the standard in language similar to that used in Wallis. (See, e.g., Scherer v. Mark (1976)
