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PAT NEBEL, Plaintiff and Respondent,
v.
JOSEPH SULAK, SR., Defendant and Appellant.
No. E023264
In the Court of Appeal of the State of California
Fourth Appellate District
Division Two
(Super.Ct.No. TEC 043675)
APPEAL from the Superior Court of Riverside County. Sherrill
A. Ellsworth, Temporary Judge. (Pursuant to Cal. Const., art.
VI, ? 21.)
Reversed with directions.
COUNSEL
Scott J. Raymond for Defendant and Appellant.
Kirk Barber and Skip Southwick for Plaintiff and Respondent.
Filed August 4, 1999
1. Introduction
This appeal raises several questions of significance.
First, to what extent may a disinterested third party observe
a judgment debtor examination, and, as a collateral issue, may
a non-lawyer conduct a judgment debtor examination to enforce
a small claims judgment?
We hold that a judgment debtor examination is a judicial
proceeding open to the public. (Code Civ. Proc., § §
124 and 708.110, subd. (a).)[FOOTNOTE 1] Additionally, the examination
must be conducted by a judicial officer or a member of the State
Bar of California. (§ 708.140, subd. (b).) In the present
case, the court erred by granting an injunction, the effect of
which was entirely to prohibit defendant Joseph Sulak, Sr. (Sulak)
from attending the subject judgment debtor examinations. The
examinations, all of which took place in the courthouse, were
not private. Sulak was entitled to observe the examinations in
a way that did not unduly interfere with them. Therefore, the
injunction issued against Sulak was overly-broad. Furthermore,
Sulak is correct that plaintiff Pat Nebel (Nebel) should not
be conducting judgment debtor examinations unless she is a member
of the Bar. We reverse the judgment.
2. Factual and Procedural Background
The record reflects that Nebel, who is apparently not
a licensed attorney, routinely conducts judgment debtor examinations
at the Three Lakes Judicial District courthouse on behalf of
judgment creditors in small claims cases. Beginning in the latter
part of 1997, Sulak, who is a licensed process server, has observed
Nebel performing the examinations. Nebel claims his presence
disturbs the debtors and interferes with the examinations. The
record more particularly shows the following sequence of events.
On February 18, 1998, Nebel conducted a judgment debtor
examination of Martha Ann Orta and Anthony Navarro Orta on behalf
of a judgment creditor, The Farm Property Owners Association.
The record does not show that Sulak observed this examination.
On March 4 and 25, 1998, Nebel conducted a judgment
debtor examination of Mike Oliva on behalf of The Farm Property
Owners Association. On March 25, Sulak watched from the back
of a courtroom as Nebel completed the examination of Mike Oliva.
On May 13, 1998, an attorney, Skip Southwick, conducted
a judgment debtor examination of Mario J. Ybarra and Deborah
G. Ybarra on behalf of Horsethief Canyon Ranch Maintenance Corporation.
Nebel was present to record the debtor' s responses. The examination
took place in the hallway outside the courtroom. From a distance
of 10 feet, Sulak observed the examination and refused to depart.
Afterwards Sulak approached Nebel and said that he would continue
to observe any examinations conducted by Nebel.
On May 27, 1998, Nebel arrived at the courthouse for
a judgment debtor examination. Sulak was present. Nebel asked
for and was granted permission to use a vacant room to conduct
the examination without interference from Sulak.
On June 3 and 11, 1998, in superior court, Nebel filed
a combined petition for injunction prohibiting harassment and
application for a temporary restraining order directed at Sulak.
On June 29, 1998, the court granted an order to show cause and
a temporary restraining order. The order provided that Sulak
stay 25 yards away from Nebel' s person, residence, and workplace.
Additionally, and somewhat inconsistently, the order provided
that Sulak was prohibited from any area, 10 yards in radius,
at the Three Lakes courthouse where Nebel conducted debtor' s
examinations.
On July 20, 1998, Sulak filed a response and a cross-complaint
for declaratory relief and injunction.
On July 22, 1998, the court conducted a brief hearing
in which it questioned both the parties. On July 24, 1998, it
then issued its ruling, granting a restraining order and ordering
that Sulak stay 25 feet away from Nebel. The duration of the
order was for six months. On July 29, 1998, the court also issued
a ruling that stated "Petition for Cross-Complaint re: Declaratory
Relief/Injunction Denied."
This appeal followed.
3. Discussion
At the outset, we consider whether the appeal is moot.
We hold it is not for two reasons. First, although the injunction
expired on January 24, 1999, the issues are of general interest
and are likely to recur:
"' As a general rule, when an event has occurred
pending appeal from a lower court judgment which renders it impossible
for the appellate court to grant an appellant any effectual relief
whatever, the appeal will be dismissed as moot. [Citation.] There
is a significant exception to this rule, however, where the appeal
raises an important issue that is likely to recur, yet evade
review. [Citations.] If an action involves a matter of continuing
public interest and the issue is likely to recur, a court may
exercise an inherent discretion to resolve that issue, even though
an event occurring during its pendency would normally render
the matter moot.' " (Hebert v. Los Angeles Raiders, Ltd.
(1991) 23 Cal.App.4th 414, 421, citing Schraer v. Berkeley
Property Owners' Assn. (1989) 207 Cal.App.3d 719, 728.)
The instant appeal presents significant issues involving
the correct procedures for a judgment debtor examination. Those
issues are implicated in Sulak' s cross-complaint, in which he
seeks in part affirmative relief for Nebel' s alleged unfair
business practices. On appeal, Nebel focuses entirely upon the
propriety of the injunction and ignores the issue of whether
she, a non-lawyer, can properly conduct a debtor' s examination.
But this question bears on the relief sought by defendant in
his cross-complaint and, therefore, should not be disregarded.
Applying a strict standard of mootness, such as respondent would
have us do, would effectively exempt these important questions
from judicial review. Accordingly, we decline to dismiss the
appeal as moot and instead proceed to a consideration of the
merits.
Two statutory schemes are involved: (1) the statutes
governing procedures in small claims court and (2) the enforcement
of judgments law. The small claims law provides, with certain
exceptions not pertinent here, that no party to a small claims
action can be represented by an attorney. (§ 116.530.) Any
party not a natural person may be represented only through a
regular employee, or a duly appointed or elected officer or director,
who is employed, appointed, or elected for purposes other than
solely representing the party in small claims court. (§
116.530, subds. (b) and (c).) A partnership may be represented
by a partner. (§ 116.530, subd. (c).) The small claims law
further provides that a judgment debtor shall complete a judgment
debtor' s statement of assets. (§ 116.830; Cal. Rules of
Court, rule 982.7, subd. (a).) A small claims judgment may also
be enforced as provided by the enforcement of judgments law.
(§ 116.820, subd. (a).)
Under the enforcement of judgments law, a judgment debtor
may be compelled to appear before the court or an appointed referee
for examination regarding his or her assets. (§ 708.110.)
Only a member of the State Bar of California is eligible for
appointment as a referee. (§ 708.140, subd. (b).)
Additionally, a judgment debtor examination is a public
proceeding. Section 124 provides: ". . . the sittings of
every court shall be public." Interpreting this section,
the California Supreme Court recently said: "We believe
that the public has an interest, in all civil cases, in
observing and assessing the performance of its public judicial
system, and that interest strongly supports a general right of
access in ordinary civil cases." (NBC Subsidiary (KNBC-TV),
Inc. v. The Superior Court of Los Angeles County (Locke) (July
28, 1999) 1999 Daily Journal D.A.R. 7575, 7586.)
By application of the foregoing, we reach the following
conclusions. Although no party to a small claims action may be
represented by an attorney, a judgment creditor in a small claims
action has two alternatives for the enforcement of a judgment.
Either (1) the judgment creditor can seek information by use
of the judgment debtor' s statement of assets or (2) the judgment
creditor may seek to have a debtor examination conducted before
the court or an appointed referee, i.e., a licensed attorney.
Furthermore, although debtor examinations often occur informally,
in the hallway outside the courtroom or in an adjacent room,
a debtor examination is a public, not a private, proceeding from
which the public may not be excluded.
We next review the propriety of the injunction against
Sulak:
"In order to obtain a section 527.6 injunction,
the plaintiff must show by clear and convincing evidence that
he has been harassed, which is defined as ' a knowing and willful
course of conduct directed at a specific person which seriously
alarms, annoys, or harasses the person, and which serves no legitimate
purpose. The course of conduct must be such as would cause a
reasonable person to suffer substantial emotional distress, and
must actually cause substantial emotional distress to the plaintiff.
"Course of conduct" is a pattern of conduct composed
of a series of acts over a period of time, however short, evidencing
a continuity of purpose. Constitutionally protected activity
is not included within the meaning of "course of conduct."
' (§ 527.6, subds. (b), (d).)
"Section 527.6 was passed to supplement the existing
common law torts of invasion of privacy and intentional infliction
of emotional distress by providing quick relief to harassment
victims threatened with great or irreparable injury. (Smith
v. Silvey (1983) 149 Cal.App.3d 400, 405 [197 Cal.Rptr. 15].)
It was enacted to protect the individual' s right to pursue safety,
happiness and privacy as guaranteed by the California Constitution.
(Kobey v. Morton (1991) 228 Cal.App.3d 1055, 1059 [278
Cal.Rptr. 530].)
"Section 527.6 has been used where the victim has
been stalked, threatened or otherwise seriously harassed. [Citations.]"
(Grant v. Clampitt (1997) 56 Cal.App.4th 586, 591-592.)
In the present case, the court ultimately granted an
injunction prohibiting Sulak from being within 25 feet of Nebel.
But there are several problems with the injunction because there
is not substantial evidence of harassing conduct. (Schild
v. Rubin (1991) 232 Cal.App.3d 755, 762.)
First, even if Nebel had possessed the authority to
conduct debtor examinations, the injunction was overbroad, encompassing
lawful activity by Sulak. Because a debtor examination is a public
proceeding, Sulak had the right to observe any examination, whether
performed by Nebel or an attorney. (See Smith v. Silvey
(1983) 149 Cal.App.3d 400, 406-407 [§ 527.6 inapplicable
where activities complained of were an exercise of the constitutional
right to petition for redress of grievances] and H-CHH Associates
v. Citizens for Representative Government (1987) 193 Cal.App.3d
1193, 1221 [approaching mall patrons, as opposed to obstructing
or impeding them, is constitutionally-protected activity and
not subject to prohibition under § 527.6].)
Furthermore, while it is possible an injunction could
have been issued upon a proper showing that Sulak engaged in
harassing conduct, that showing was not made here. (Paradise
Hills Associates v. Procel (1991) 235 Cal.App.3d 1528, 1546.)
Instead, the record reflects that, on one occasion, Sulak watched
from the back of a courtroom while Nebel performed an examination.
On another occasion, while the debtor examination was conducted
by an attorney, Skip Southwick, Sulak did nothing more than quietly
observe the proceeding. No evidence demonstrated that he threatened,
harassed, otherwise interfered with the examination, or did anything
other than what he was legally entitled to do. Neither Southwick,
nor the debtors being examined, the Ybarras, sought an injunction
against Sulak. And based on this second incident, Nebel, who
was present only to transcribe the answers of the Ybarras, did
not have standing to seek an injunction. Under these circumstances,
there has not been a proper showing entitling Nebel to an injunction.
4. Disposition
After reviewing the record and the pertinent law, we
hold that the lower court abused its discretion and erred when
it granted an injunction to Nebel and dismissed Sulak' s cross-complaint.
We reverse the judgment and remand to the lower court for further
proceedings in accordance with our opinion. As the prevailing
party, Sulak shall be entitled to recover his costs.
Gaut, J.
We concur: Ramirez, P. J., and Richli, J.
August 6, 1999 CALIFORNIA
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FN1. All further statutory references are to the Code
of Civil Procedure, unless otherwise stated.
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