Traci & Marx Co. v. Legal Options, Inc.

Plaintiff Traci & Marx Co. appeals the grant of the motion of defendants Legal Options, Inc., and Stuart Grant to vacate the sister state default judgment obtained by plaintiff in Ohio. We conclude that the trial court erred in granting the motion, and so reverse the judgment.

FACTS

Plaintiffs sued defendants in the Court of Common Pleas for Cuyahoga County, Ohio for fraudulent inducement to enter contract, bad faith, negligence, and fraud, and for violations of the Ohio Consumer Sales Practices Act, the Ohio Deceptive Trade Practices Act, and the Ohio Corrupt Activity Act. Their prayer for relief requested, among other things, “compensatory damages in excess of $25,000” and “punitive damages in excess of $25,000.” 2 Defendants did not answer. The Ohio court conducted a “default hearing” on September 20, 2001, after which it granted plaintiff judgment against defendants in the amount of $25,890 as compensatory damages and $130,000 as punitive damages (the Ohio Judgment). On December 22, 2002, pursuant to the Sister State Money-Judgments Act (Code Civ. Proc., § 1710.10 et seq.), the Superior Court for Los Angeles County ordered entry of the Ohio Judgment in the amount…

I concur.

Appellant Traci & Marx Co. (Traci & Marx), an Ohio company, obtained a default judgment in Ohio against respondent Legal Options, Inc. (Legal Options), a California company, on a complaint based, inter alia, on fraud. The Ohio court awarded compensatory and punitive damages in the total amount of $155,890 plus interest. The majority concludes correctly that under Code of Civil Procedure section 1710.10 et seq., we must enforce a sister-state judgment that is contrary to California’s public policy. (Medical Legal Consulting Services, Inc. v. Covarrubias (1991) 234 Cal.App.3d 80, 90 [ 285 Cal.Rptr. 559 ]; Tyus v. Tyus (1984) 160 Cal.App.3d 789 [ 206 Cal.Rptr. 817 ].)

The Law Revision Commission stated with respect to Code of Civil Procedure section 1710.40 that a judgment debtor may move to vacate the entry of a sister state judgment “on any ground which would be a defense to an action in this state on the sister state judgment.” (Recommendation: Enforcement of Sister State Money Judgments (Nov. 1973) 11 Cal. Law Revision Com. Rep. § 1710.40, pp. 466^-67, reprinted in 19A West’s Ann. Cal. Codes (1982 ed.) foil. § 1710.40, pp. 693-694.) The grounds include, “the judgment…

Plaintiff Traci & Marx Co. appeals the grant of the motion of defendants Legal Options, Inc., and Stuart Grant to vacate the sister state default judgment obtained by plaintiff in Ohio. We conclude that the trial court erred in granting the motion, and so reverse the judgment.

Plaintiffs sued defendants in the Court of Common Pleas for Cuyahoga County, Ohio for fraudulent inducement to enter contract, bad faith, negligence, and fraud, and for violations of the Ohio Consumer Sales Practices Act, the Ohio Deceptive Trade Practices Act, and the Ohio Corrupt Activity Act. Their prayer for relief requested, among other things, "compensatory damages in excess of $25,000" and "punitive damages in excess of $25,000." [2] Defendants did not answer. The Ohio court conducted a "default hearing" on September 20, 2001, after which it granted plaintiff judgment against defendants in the amount of $25,890 as compensatory damages and $130,000 as punitive damages ("the Ohio Judgment"). On December 22, 2002, pursuant to the Sister State Money-Judgments Act (Code Civ. Proc., § 1710.10 et seq.), the Superior Court for Los Angeles County ordered entry of the Ohio Judgment in the amount…