Shapell Socal Rental Properties v. Chico's FAS
Annotate this CaseIn this unlawful detainer action, counsel for plaintiff Shapell Socal Rental Properties, LLC (Shapell) requested and obtained a default and default judgment against defendant Chico’s FAS, Inc. (CFI) in direct violation of the ethical and statutory obligations confirmed in LaSalle v. Vogel, 36 Cal.App.5th 127 (2019). In the course of the underlying lease dispute, CFI had asked Shapell to direct communications regarding the subject lease to CFI’s counsel. Despite that request, Shapell’s counsel never communicated with CFI’s counsel about an intent to seek a default and default judgment before requesting one from the trial court. Shapell’s counsel not only failed to notify CFI’s counsel of the complaint, counsel also effected service of the complaint and the request for entry of default and default judgment in a way intentionally and precisely calculated to create a strong possibility of a default. CFI brought a motion under California Code of Civil Procedure sections 473(b) and 473.5 to set aside the default and default judgment. In that motion, CFI called out Shapell on its counsel’s ethical and statutory violation. Shapell’s response was to call CFI’s argument “specious.” The trial court denied CFI’s motion and failed to address the breach of ethical and statutory duties by Shapell’s counsel. The Court of Appeal could not "abide that result. Several factors applicable to motions for relief from default, along with counsel’s breach of ethics and of section 583.130, support our decision to reverse the order denying CFI’s motion to set aside the default and default judgment."
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