Gutierrez-Hernandez

I. INTRODUCTION

Defendants, McGills Warehouse, Inc. and Donald C. Gallagher, appeal from sanction orders and an October 10, 2013 default judgment entered in favor of plaintiffs, Emmanuel Gutierrez-Hernandez (plaintiff) and Maria Gutierrez. In addition, defendants challenge the orders denying their motions for reconsideration and relief from the default judgment. We modify the judgment.

II. BACKGROUND

A. Pleadings

On April 18, 2011, plaintiff and his wife filed a complaint against defendants for: contract breach; implied covenant of good faith and fair dealing breach; wrongful termination in violation of public policy; intentional emotional distress infliction; violation of Business and Professions Code section 17200; violation of the Consumer Legal Remedies Act; intentional and negligent misrepresentation; concealment; disability discrimination and retaliation in violation of Government Code section 12900 et seq.; and consortium loss. The complaint alleges plaintiff was a former employee of McGills Warehouse, Inc. McGills Warehouse, Inc. is an importer and exporter that sells tools and miscellaneous items online. Mr. Gallagher owned the business. A co-defendant, Tesson Walker,…