Jerry's Shell v. Equilon Enterprises
<html> <head> <meta http-equiv=Content-Type content="text/html; charset=windows-1252"> <meta name=Generator content="Microsoft Word 10 (filtered)"> <title>Filed 12/12/05</title> <style> <!-- /* Font Definitions */ @font-face {font-family:Tahoma; panose-1:2 11 6 4 3 5 4 4 2 4;} @font-face {font-family:"Trebuchet MS"; panose-1:2 11 6 3 2 2 2 2 2 4;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {margin:0in; margin-bottom:.0001pt; line-height:150%; font-size:13.0pt; font-family:"Times New Roman";} h1 {margin:0in; margin-bottom:.0001pt; text-align:center; line-height:150%; page-break-after:avoid; font-size:13.0pt; font-family:"Times New Roman"; font-weight:bold; text-decoration:underline;} p.MsoFootnoteText, li.MsoFootnoteText, div.MsoFootnoteText {margin-top:0in; margin-right:0in; margin-bottom:12.0pt; margin-left:0in; line-height:15.0pt; font-size:13.0pt; font-family:"Times New Roman";} p.MsoHeader, li.MsoHeader, div.MsoHeader {margin:0in; margin-bottom:.0001pt; line-height:150%; font-size:13.0pt; font-family:"Times New Roman";} p.MsoFooter, li.MsoFooter, div.MsoFooter {margin:0in; margin-bottom:.0001pt; line-height:150%; font-size:13.0pt; font-family:"Times New Roman";} span.MsoFootnoteReference {font-family:"Times New Roman"; position:relative; top:-4.0pt; font-weight:bold; vertical-align:super;} a:link, span.MsoHyperlink {color:blue; text-decoration:underline;} a:visited, span.MsoHyperlinkFollowed {color:purple; text-decoration:underline;} p {margin-right:0in; margin-left:0in; font-size:12.0pt; font-family:"Times New Roman";} /* Page Definitions */ @page Section1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in;} div.Section1 {page:Section1;} @page Section2 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in;} div.Section2 {page:Section2;} --> </style> </head> <body lang=EN-US link=blue vlink=purple> <div class=Section1> <p class=MsoNormal style='line-height:normal'><span style='font-size:10.0pt'>Filed </span><span style='font-size:10.0pt'>12/12/05</span></p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'><b>CERTIFIED FOR PUBLICATION</b></p> <p class=MsoNormal style='line-height:normal'> </p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'> </p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'> </p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'> </p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'> </p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'>IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA</p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'> </p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'>SECOND APPELLATE DISTRICT</p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'> </p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'>DIVISION FOUR</p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'><b> </b></p> <p class=MsoNormal align=center style='text-align:center;line-height:normal'> </p> <p class=MsoNormal style='line-height:normal'> </p> <table class=MsoNormalTable border=1 cellspacing=0 cellpadding=0 style='border-collapse:collapse;border:none'> <tr> <td width=319 valign=top style='width:239.4pt;border-top:none;border-left: none;border-bottom:solid windowtext 1.0pt;border-right:solid windowtext 1.0pt; padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'>JERRY'S SHELL et al.,</span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> </span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> Plaintiffs and Appellants,</span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> </span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> v.</span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> </span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'>EQUILON ENTERPRISES, LLC, et al.,</span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> </span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> Defendants and Respondents.</span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> </span></p> </td> <td width=319 valign=top style='width:239.4pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> B174260</span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> </span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> (</span><span style='font-size:14.0pt'>Los Angeles</span><span style='font-size:14.0pt'> </span><span style='font-size:14.0pt'>County</span></p> <p class=MsoNormal style='line-height:normal'><span style='font-size:14.0pt'> Super. </span><span style='font-size:14.0pt'>Ct.</span><span style='font-size:14.0pt'> No. BC271208)</span></p> <p class=MsoNormal style='line-height:normal'> </p> </td> </tr> </table> <p class=MsoNormal><span style='font-size:14.0pt;line-height:150%'> </span></p> <p class=MsoNormal><span style='font-size:14.0pt;line-height:150%'> APPEAL from a <a href="http://www.fearnotlaw.com/"><span style='font-size:13.0pt; line-height:150%'>judgment and an order of the Superior Court</span></a> </span><span style='font-size:14.0pt;line-height:150%'>of</span><span style='font-size: 14.0pt;line-height:150%'> </span><span style='font-size:14.0pt;line-height: 150%'>Los Angeles</span><span style='font-size:14.0pt;line-height:150%'> </span><span style='font-size:14.0pt;line-height:150%'>County</span><span style='font-size: 14.0pt;line-height:150%'>, Malcolm H. Mackey, Judge. Affirmed. </span></p> <p class=MsoNormal><span style='font-size:14.0pt;line-height:150%'> Bleau, Fox & Fong, Thomas P. Bleau, and Nikki Fong for Plaintiffs and Appellants. </span></p> <p class=MsoNormal><span style='font-size:14.0pt;line-height:150%'> Fulbright & Jaworski, Richard R. Mainland, and Dinh Ha for Defendants and Respondents.</span></p> <p class=MsoNormal><span style='font-size:14.0pt;line-height:150%'> </span></p> <span style='font-size:14.0pt;line-height:150%;font-family:"Times New Roman"'><br clear=all style='page-break-before:always'> </span> <p class=MsoNormal> <span style='font-size:14.0pt;line-height:150%'>The underlying case was dismissed by the trial court as a sanction for repeated failure to respond to discovery and comply with discovery orders. Several months after terminating sanctions were issued, appellants sought to revive the litigation through a <a href="http://www.mcmillanlaw.us/">motion for relief from default or dismissal <span style='font-size:13.0pt;line-height:150%'>under Code of Civil Procedure section 473, subdivision (b) (section 473(b))</span></a>. The court denied the motion. We conclude that dismissal was the result of an intentional strategic decision on the part of appellants' counsel, and affirm.</span></p> <p class=MsoNormal><span style='font-size:14.0pt;line-height:150%'> </span></p> <p class=MsoNormal align=center style='text-align:center'><b><span style='font-size:14.0pt;line-height:150%'>FACTUAL AND PROCEDURAL BACKGROUND</span></b></p> <p class=MsoNormal><span style='font-size:14.0pt;line-height:150%'> <i>Complaint</i></span></p> <p class=MsoNormal><span style='font-size:14.0pt;line-height:150%'> Appellants Jerry's Shell and 21 others,</span><a href="#_ftn1" name="_ftnref1" title=""><span class=MsoFootnoteReference><span style='line-height:150%;position:relative; top:0pt'><span class=MsoFootnoteReference><span style='font-size:13.0pt; line-height:150%;position:relative;top:0pt'>[1]</span></span></span></span></a><span style='font-size:14.0pt;line-height:150%'> brought suit against Equilon Enterprises, LLC, doing business as (dba) Shell Oil Products US (Equilon) and certain individuals.</span><a href="#_ftn2" name="_ftnref2" title=""><span class=MsoFootnoteReference><span style='line-height:150%;position:relative; top:0pt'><span class=MsoFootnoteReference><span style='font-size:13.0pt; line-height:150%;position:relative;top:0pt'>[2]</span></span></span></span></a><span style='font-size:14.0pt;line-height:150%'> The complaint <a href="http://www.fearnotlaw.com/"><span style='font-size:13.0pt;line-height: 150%'>essentially alleged that Equilon</span></a>, a joint enterprise between Shell and Texaco, developed a plan to convert independent franchise dealers' stations into company-operated stations or put them in the hands of the individual defendants, who were said to be â€