The firm’s contractor client participated in a very troubled large scale condominium construction project, which culminated in the client obtaining a $2.7 million judgment against the construction lender. The firm’s aggressive collection efforts included levying on a large limited liability company managed by the judgment debtor.
Notwithstanding the notices of levy served by the firm, the related company wrongly transferred $2.08 million to the judgment debtor. The firm filed a motion seeking to make the related company liable for the levy violation, and the related company responded with a motion to quash. The related company also filed a peremptory challenge of the judge — before whom the judgment debtor had previously lost — which was denied.
The Fourth District Court of Appeal upheld the denial of the peremptory challenge, adopting the firm’s position that the firm’s motion on the levy violation and the responding motion to quash were merely incidental to the underlying action, such that the related company did not have a right to a peremptory challenge under Code of Civil Procedure section 170.6.
(Cal. Ct. App., Dec. 18, 2013) 13 Cal. Daily Op. Serv. 13541