Celious v. Engel CA2/8
CourtCalifornia Court of Appeal
Date FiledNovember 10, 2026
DocketB345501
StatusUnpublished
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Full Opinion
Filed 11/10/26 Celious v. Engel CA2/8
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IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION EIGHT
AARON CELIOUS, B345501 (Consol. w/B348972)
Plaintiff and Appellant, (Los Angeles County
Super. Ct. No. 22SMCV00915)
v.
ROBIN ENGEL et al.,
Defendants and Respondents.
APPEAL from orders of the Superior Court of Los Angeles
County. Edward B. Moreton, Jr., Judge. Affirmed in part and
reversed in part.
Aaron Celious, in pro. per., for Plaintiff and Appellant.
Law Office of Shanen R. Prout and Shanen R. Prout for
Defendant and Respondent Robin Engel.
Hogan Zappaterreno, John V. Hogan, and Cassandra
Zappaterreno for Defendant and Respondent Ernesto Morales.
_________________________________
INTRODUCTION
This is plaintiff Aaron Celious’s second appeal arising out
of the City of Los Angeles’s (City) solicitation of public contracts
for two projects funded by the City. Celious is an independent
contractor for a company that submitted unsuccessful contract
proposals for those projects. Defendants Robin Engel and
Ernesto Morales are executives for two companies that were
awarded the contracts. In this consolidated appeal, Celious
challenges the trial court’s orders granting Engel’s and Morales’s
motions for judgment on the pleadings, Morales’s motion for
monetary sanctions against Celious, and Morales’s motion to
deem Celious a vexatious litigant.
Celious contends that the trial court erred when it found he
failed to state a cause of action against Engel and Morales for
intentional interference with prospective economic relations
(tortious interference). Celious also contends that the trial court
should have granted him leave to file an amended complaint
asserting causes of action for fraud and negligent
misrepresentation against Engel and Morales based on the same
conduct giving rise to his tortious interference claim. In addition,
Celious argues that the trial court erred when it deemed him a
vexatious litigant and awarded Morales monetary sanctions.
We reverse a prefiling order that the trial court issued
without providing Celious notice or the opportunity to be heard.
We otherwise affirm.
BACKGROUND
1. The public contracts
Maroon Society Inc. (Maroon Society) provides “data
compilation, analysis, planning, and strategic consulting services
for government agencies to improve program administration, and
2
policy development.” Almost all of Maroon Society’s revenue
comes from government contracts procured through competitive
bidding procedures.
Celious is one of Maroon Society’s independent contractors.
He “holds a Commission Agreement with Maroon Society to
prepare bids, proposals, and all tasks related to procuring new
contracts” for the company. Maroon Society pays Celious a
commission of 25% of the total value of contracts that are
awarded to the company. Engel is the chief executive officer
(CEO) of Star Insights, LLC, and Morales is the CEO of North
Star Alliances LLC (North Star), both of which are consulting
companies.
In 2021, the City issued a request for proposals for
professional assistance to facilitate the “ ‘implementation of the
outreach efforts necessary to maximize public input on the
redrawing of’ ” the Los Angeles Unified School District’s school
board member district boundaries (LAUSD Project). Later that
year, the City issued a request for proposals for assistance in
developing “a five-year strategic plan for the Los Angeles Civil,
Human Rights and Equity Department” (CHRED project).
The City awarded the contract for the LAUSD Project to
North Star and the contract for the CHRED Project to Star
Insights. Maroon Society submitted unsuccessful bids for both
projects.
2. Celious’s lawsuit
In September 2023, after the City denied his protests to the
contract awards, Celious filed the operative second amended
complaint against the City and several individual defendants
who worked for the City (individual City defendants), Engel, and
Morales. Against Engel and Morales, Celious asserted causes of
3
action for tortious interference, negligent interference with
prospective economic relations, and violation of the Unfair
Competition Law (UCL) (Bus. & Prof. Code, § 17200 et seq.).
The gravamen of Celious’s lawsuit is that North Star and Star
Insights were awarded contracts for the LAUSD and CHRED
projects, respectively, even though they did not “complete the
bidding requirements” for the projects’ requests for proposals and
“misrepresented their qualifications to gain an unfair competitive
advantage over” Celious.
With respect to his tortious interference claim, Celious
alleged the following facts. Celious and Maroon Society shared
an economic relationship based on their commission agreement,
and Maroon Society and the City shared an economic relationship
that was created when Celious prepared the company’s contract
proposals for the LAUSD and CHRED projects. Engel and
Morales were aware of both economic relationships. With the
intent to disrupt those relationships, Engel and Morales made
false and fraudulent statements that violated laws and
regulations governing the procurement of public contracts. Those
statements disrupted Celious’s economic relationship with
Maroon Society and Maroon Society’s economic relationship with
the City, causing both Celious and Maroon Society to suffer
economic damages.
After the trial court sustained demurrers to the second
amended complaint that were filed by the City, the individual
City defendants, and Engel and Morales, it apparently dismissed
all but Celious’s claims for tortious interference against Engel
and Morales.
4
2.1. Motions seeking leave to amend, judgment on
the pleadings, and monetary sanctions
On July 25, 2024, Celious filed a motion for leave to file a
third amended complaint that he claimed added or altered legal
theories against Engel and Morales that were based on facts he
already pled in his prior complaints. Morales and Engel opposed
Celious’s motion, arguing, among other things, that the proposed
third amended complaint improperly sought to contradict
allegations from Celious’s prior pleadings and add new
allegations that were known to Celious when he filed his original
complaint. Morales and Engel also argued that Celious’s
declaration supporting his motion failed to explain when he
discovered the facts supporting the new allegations in his
proposed complaint. In late August 2024, the court denied
Celious’s motion because he failed to explain why he could not
have alleged the new facts or added Morales and Engel to his
existing fraud causes of action in his prior pleadings.
On September 3, 2024, Celious filed a second motion for
leave to file a third amended complaint. Morales and Engel
opposed Celious’s second motion for leave to amend. Among
other things, Morales argued that Celious was trying to deceive
the trial court by failing to highlight or underline in his proposed
third amended complaint new factual allegations that were not
included in his second amended complaint. Morales also argued
that Celious failed again to explain in his supporting declaration
why he did not include the new factual allegations in his prior
pleadings. Less than a week after Morales and Engel filed their
oppositions, Celious withdrew his second motion for leave to
amend.
5
On September 30, 2024, Celious filed a motion for relief
under Code of Civil Procedure section 473, subdivision (b).
Celious sought relief from the trial court’s order denying his
July 25, 2024 motion for leave to amend, arguing his failure to
file an adequate supporting declaration was the result of his
excusable neglect in failing to comprehend the procedural
requirements for seeking leave to file an amended complaint.
Celious attached to his motion for relief a new motion for leave to
amend and a new proposed third amended complaint. Morales
and Engel opposed Celious’s motion for relief. The court denied
Celious’s motion for relief, explaining that Celious’s ignorance of
the requirements for seeking leave to file an amended complaint
did not constitute grounds for relief under Code of Civil
Procedure section 473, subdivision (b).
On October 24, 2024, Celious filed a “renewed” motion for
leave to file a third amended complaint. Morales and Engel
opposed Celious’s renewed motion. Morales argued that Celious’s
renewed motion continued to fail to explain why Celious could not
allege any of his new facts in his prior pleadings. Morales also
argued that the proposed third amended complaint attached to
Celious’s renewed motion was a sham pleading because it
included allegations that directly contradicted allegations
included in Celious’s previous verified pleadings, such as
allegations concerning when Maroon Society formed an economic
relationship with the City.
On November 12, 2024, Morales and Engel filed motions for
judgment on the pleadings against Celious’s second amended
complaint. The record on appeal does not include copies of either
motion.
6
On November 13, 2024, Celious filed a second renewed
motion for leave to file a third amended complaint.
On November 18, 2024, Morales filed a motion for
monetary sanctions under Code of Civil Procedure section 128.5
(Section 128.5), seeking over $24,000 in attorney fees and other
expenses, arguing Celious engaged in bad faith tactics by
repeatedly filing and withdrawing frivolous motions for leave to
file a third amended complaint. Celious opposed the sanctions
motion on the grounds that he acted in good faith in seeking
leave to file a third amended complaint and that Morales was not
prejudiced by any of his actions. That same day, Celious
withdrew his first renewed motion for leave to file a third
amended complaint.
On December 11, 2024, the trial court denied Celious’s
second renewed motion for leave to file a third amended
complaint. The court found that Celious had access to all the
“new” evidence that he claimed supported his renewed motion
(and his prior motions seeking leave to amend) before he filed his
lawsuit. Accordingly, the court found that Celious failed to
provide a “ ‘satisfactory explanation for [his] previous failure to
present the allegedly new or different evidence.’ ”
Also on December 11, 2024, the trial court granted without
leave to amend Engel’s and Morales’s motions for judgment on
the pleadings. Relying on the California Supreme Court’s
decision in Roy Allan Slurry Seal, Inc. v. American Asphalt
South, Inc. (2017) 2 Cal.5th 505 (Roy Allan), the court found that
Celious could not allege the first element of his tortious
interference claim. Specifically, the court found that Celious
could not allege the existence of a prospective economic
relationship between Maroon Society and the City arising out of
7
the company’s decision to bid on contracts for the LAUSD and
CHRED projects, because the competitive bidding process for
such public contracts is too speculative. Thus, the court
explained, even if Engel and Morales did not allegedly
misrepresent their companies’ qualifications while bidding on
those contracts, there was no guarantee that the City would have
awarded the contracts to Maroon Society.
On December 17, 2024, the trial court granted in part and
denied in part Morales’s motion for sanctions. The court denied
the motion to the extent it sought sanctions based on Celious’s
repeated filing of unsuccessful motions for leave to file a third
amended complaint because Morales failed to comply with
Section 128.5’s 21-day safe harbor provision.
The trial court granted Morales’s motion, however, to the
extent it sought sanctions based on Celious’s tactic of
withdrawing two of his motions seeking leave to file a third
amended complaint. The court found that Celious’s conduct
“constitute[d] bad faith tactics, designed to take unfair advantage
of his opposing party and solely intended to cause unnecessary
delay.” The court explained, “[Celious] withdrew his motions so
he could delay the Court’s ruling on the merits of the motions in
the hopes he could artfully plead around the arguments Morales
asserted in his oppositions. [Celious] waited to see what Morales’
oppositions said before deciding to take the motions off calendar,
and he did this not once, but twice. This is clear evidence that
[Celious] acted in subjective bad faith. Sanctioning [Celious] is
the only way to control the burdensome and unnecessary legal
tactics [he] has engaged in in the last several months with
respect to filing repeated, substantially identical motions
requesting leave to file a TAC.”
8
On December 27, 2024, Celious filed a motion for
reconsideration of the trial court’s ruling on Morales’s sanctions
motion. The trial court denied Celious’s reconsideration motion.
On January 7, 2025, the trial court entered judgment
dismissing Celious’s claims against Engel and Morales.
Celious appealed from the judgment and the trial court’s
sanctions order.
2.2. Vexatious litigant proceedings
On February 11, 2025, Morales filed a motion to deem
Celious a vexatious litigant under Code of Civil Procedure
section 391, subdivisions (b)(2) and (b)(3). Morales also asked the
trial court to issue a prefiling order under section 391.7,
subdivision (a). Morales’s motion was based on Celious
repeatedly filing and withdrawing motions seeking leave to file a
third amended complaint after the trial court denied his first
motion for leave to amend and his failed attempt at seeking
reconsideration of the trial court’s sanctions order.
On April 7, 2025, the trial court granted Morales’s
vexatious litigant motion. The court found that Celious qualified
as a vexatious litigant under Code of Civil Procedure section 391,
subdivision (b)(3), because he repeatedly filed and withdrew
unmeritorious motions seeking leave to file a third amended
complaint, all of which were either frivolous or solely intended to
cause unnecessary delay. The court directed Morales to prepare
a proposed order.
On May 12, 2025, the trial court signed a proposed order
deeming Celious a vexatious litigant and requiring him to pay a
$10,000 security bond for any future motions he filed in this
lawsuit. The court struck through two paragraphs in the
proposed order that would have required Celious to pay prefiling
9
bonds for any appeals he pursued related to this case and any
new litigation.
On June 6, 2025, the trial court issued a new prefiling
order requiring Celious to pay a $50,000 bond before filing any
further motions below, and a $50,000 bond for each appeal he
pursued in this case.
Celious appealed from the order declaring him a vexatious
litigant and the prefiling order.
We consolidated Celious’s appeals from the sanctions order,
the judgment dismissing his claims against Engel and Morales,
and the vexatious litigant orders.
DISCUSSION
1. The motions for judgment on the pleadings
Celious argues that the trial court erred when it granted
Morales’s and Engel’s motions for judgment on the pleadings,
dismissing his claim against defendants for tortious interference.
At the very least, Celious contends, the court should have
granted him leave to add claims against defendants for fraud and
negligent misrepresentation. Both of Celious’s arguments lack
merit.
1.1. Standard of review
The trial court may grant judgment on the pleadings when
the complaint fails to allege facts sufficient to state a cause of
action. (Code Civ. Proc., § 438, subd. (c)(1)(B)(ii).) A motion for
judgment on the pleadings operates like a demurrer and is
subject to the same de novo standard of review. (Kapsimallis v.
Allstate Ins. Co. (2002) 104 Cal.App.4th 667, 672.) We must
accept as true all properly pleaded material facts but not
contentions, deductions, or conclusions of fact or law. (Ibid.) We
may consider matters that are subject to judicial notice. (Ibid.)
10
We review a court’s refusal to grant leave to amend for
abuse of discretion. (Blank v. Kirwan (1985) 39 Cal.3d 311, 318.)
The trial court abuses its discretion if there is a reasonable
possibility that the complaint’s defects can be cured by
amendment. (Ibid.) The plaintiff carries the burden of showing
an abuse of discretion. (Ibid.)
1.2. Celious failed to state a claim for tortious
interference
A claim for tortious interference has five elements: (1) the
existence of an economic relationship between the plaintiff and a
third party that contains the probability of future economic
benefit to the plaintiff; (2) the defendant’s knowledge of that
relationship; (3) the defendant commits intentionally wrongful
acts that are designed to disrupt that relationship; (4) actual
disruption of the relationship; and (5) economic harm proximately
caused by the defendant’s action. (Roy Allan, supra, 2 Cal.5th at
p. 512.)
In Roy Allan, the California Supreme Court addressed
when, if ever, a disappointed bidder for a public works contract
can establish the first element of a tortious interference claim—
i.e., the existence of the requisite economic relationship with the
public entity that solicited bids for the contract. (Roy Allan,
supra, 2 Cal.5th at pp. 512–522.) There, two asphalt companies
that unsuccessfully bid on a series of public contracts sued a third
asphalt company that was awarded the contracts. (Id. at p. 510.)
The plaintiffs alleged that they submitted the second lowest bids
for several of the contracts that were awarded to the defendant,
and that they would have been awarded those contracts but for
the defendant’s wrongful conduct during the bidding process. (Id.
at pp. 509–510.) The Supreme Court held that under the
11
circumstances of that case, the plaintiffs had “ ‘at most a hope for
an economic relationship [with the public entity] and a desire for
future benefit,’ ” which was too speculative to support a tortious
interference claim. (Id. at p. 517.)
The Court explained that tortious interference
“ ‘traditionally has not protected speculative expectancies’
[citation], usually because ‘ “there is no sufficient degree of
certainty that the plaintiff ever would have received the
anticipated benefits.” ’ ” (Roy Allan, supra, 2 Cal.5th at p. 518,
italics omitted.) The Court noted that in two of its prior
decisions, it held that the tort “lies ‘ “when a contract would, with
certainty, have been consummated but for the conduct of the
tortfeasor” ’ [(Buckaloo v. Johnson (1975) 14 Cal.3d 815, 823,
fn. 6)],” or where there is “ ‘at least the reasonable probability of
an expectancy to establish a cause of action for interference with
prospective economic advantage’ [(Youst v. Longo (1987)
43 Cal.3d 64, 71–72)].” (Roy Allan, at p. 518.) The Court
explained that the second standard “ ‘is especially appropriate to
evaluate a lost economic expectancy where the facts involve a
competitive contest of one kind or another. To require less of a
showing would open the proverbial floodgates to a surge of
litigation based on alleged missed opportunities to win various
types of contests, despite the speculative outcome of many of
them.’ ” (Ibid.)
The Court then observed that bidding for public works
contracts is an “inherently speculative” process. (Roy Allan,
supra, 2 Cal.5th at pp. 518–519.) A public entity typically can
reject all bids for a project, and a proposed contractor often has
no way to know whether it is the lowest responsible bidder or
otherwise the most qualified bidder for the project due to the
12
secretive nature of the bidding process. (Id. at p. 519.) A public
entity typically retains discretion to reject other qualified bids if
it does not ultimately form a contract with the lowest bidder,
further decreasing any certainty the second-most qualified bidder
may have in receiving a public contract but for lowest bidder’s
wrongful conduct. (Ibid.) In addition, the public entity’s
evaluation of whether a bidder is most qualified to receive a
contract is a “ ‘complex matter dependent, often, on information
received outside the bidding process and requiring, in many
cases, an application of subtle judgment.’ ” (Ibid.) All these
circumstances, the Court reasoned, “counsel against extending a
tortious interference claim to the bid process for these public
works contracts.” (Id. at p. 520.)
Here, Celious alleged that by bidding for public contracts
for the LAUSD and CHRED projects, Maroon Society established
an economic relationship with the City that carried the
probability of future economic benefit. Engel and Morales
tortiously interfered with that relationship by fraudulently
misrepresenting the qualifications and experience of their
respective companies, with the intent to gain an unfair
advantage over Maroon Society. But for that tortious
interference, the City would have awarded Maroon Society
contracts for the two projects. These allegations are virtually
identical to those that the Supreme Court rejected in Roy Allan.
They therefore cannot support a claim for tortious interference
against Engel and Morales.
Celious argues that this case is distinguishable from Roy
Allan because the bidding processes for the LAUSD and CHRED
projects were different from the bidding process at issue in that
case. Celious claims that unlike in Roy Allan, the bidding
13
processes in this case did not utilize a lowest-responsible bidder
system. Instead, the City evaluated contract proposals on
multiple criteria, including price, “firm experience, personnel and
proposal responsiveness,” as well as the firm’s “ ‘familiarity with
the City … political challenges, budget priorities, … policy goals,’
and staff qualifications.” Celious argues that these differences
matter because proposed contractors for the LAUSD and CHRED
projects were not on equal footing, and a contractor’s prior
experience working with the City was a factor used in the
evaluation process. We disagree.
To be sure, the bidding processes at issue in this case and
the one at issue in Roy Allan may not be identical. But they
share critical similarities. For instance, like in Roy Allan, the
City’s requests for contract proposals for the LAUSD and CHRED
projects were simply requests for proposals from interested
contractors. (Roy Allan, supra, 2 Cal.5th at p. 517.) The bidding
processes in this case were competitive and speculative, as they
did not guarantee anyone would receive a contract if certain
criteria were met. Indeed, like the public entity in Roy Allan, the
City was free to reject all bids for the LAUSD and CHRED
projects, regardless of how well qualified a bid may have been.
(See id. at p. 519.) In addition, the bidding processes in this case
required the City to analyze a bidder’s qualifications based on
range of criteria, which requires the “ ‘application of subtle
judgment.’ ” (Ibid.)
All these factors demonstrate how speculative Maroon
Society’s chances were of establishing a beneficial economic
relationship with the City through its bids for the LAUSD and
CHRED projects, even without any alleged wrongful interference
from defendants’ companies during the bidding processes for
14
those projects. In other words, Maroon Society had “ ‘at most a
hope for an economic relationship [with the City] and a desire for
future benefit,’ ” which is insufficient to establish the requisite
economic relationship to support a tortious interference claim.
(Roy Allan, supra, 2 Cal.5th at p. 517.)
Finally, Celious argues that we should reverse the trial
court’s decision because he alleged the existence of a sufficiently
beneficial economic relationship between himself and Maroon
Society. Celious alleged that a relationship existed by virtue of
his commission agreement with the company, and defendants
tortiously interfered with that relationship through their
allegedly fraudulent conduct during the bidding processes for the
LAUSD and CHRED projects. This theory is dependent,
however, on the success of the theory that we just rejected.
Celious did not allege any facts to suggest defendants
directly interfered with his relationship with Maroon Society.
Rather, for Celious to establish a tortious interference claim
against defendants based on his relationship with Maroon
Society, he necessarily needs to establish that defendants
tortiously interfered with Maroon Society’s relationship with the
City. As we just explained, however, Celious cannot establish the
latter form of tortious interference under Ray Allan. It
necessarily follows, then, that Celious also cannot establish that
defendants tortiously interfered with his relationship with
Maroon Society based on any alleged wrongdoing in the bidding
process for the LAUSD and CHRED projects.
In short, the trial court correctly found that Celious failed
to state a claim for tortious interference.
15
1.3. The trial court did not abuse its discretion in
denying Celious leave to amend or add new
claims
Celious next contends that the trial court should have
granted him leave to file a third amended complaint. He argues
that he should have been allowed to add claims for fraud and
negligent misrepresentation against Engel and Morales, arising
out of the allegedly false statements they made during the
bidding process for the LAUSD and CHRED projects. As we
explain, the trial court did not abuse its discretion when it denied
Celious leave to add new claims for fraud and negligent
misrepresentation.
As we outlined above, Celious made numerous unsuccessful
attempts below to file a third amended complaint. Although
Celious asserts that the trial court erred each time it denied his
attempts to file an amended complaint, he ultimately seeks leave
to add new claims for fraud and negligent misrepresentation
against Engel and Morales based on their alleged interference
with Celious’s economic relationship with Maroon Society and
Maroon Society’s prospective contractual relationship with the
City. Because we conclude that Celious should not have been
granted leave to add such claims, we need not address the merits
of the trial court’s rulings on each of Celious’s motions seeking
leave to file a third amended complaint.
Celious’s proposed fraud claims allege that: (1) Engel and
Morales knowingly made false statements to the City about their
companies’ qualifications during the bidding process for the
LAUSD and CHRED projects; (2) Engel and Morales intended to
deceive the City’s proposal reviewers and induce those reviewers
to rely on those statements when evaluating their companies’
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contract proposals; and (3) Celious was harmed by those false
statements because he did not receive a commission from Maroon
Society, “which he would have received had [the company] been
awarded the contract[s].”
To state a claim for fraud, a plaintiff must allege that the
defendant knowingly made false statements with the intent to
deceive the plaintiff, and that the plaintiff reasonably relied on
those statements to his or her detriment. (See Lazar v. Superior
Court (1996) 12 Cal.4th 631, 638.) Celious’s proposed fraud
claims do not allege that Engel or Morales made any false
statements to Celious or Maroon Society, that Engel or Morales
intended to deceive Celious or Maroon Society, or that Celious or
Maroon Society relied on any false statements made by Engel or
Morales. Instead, both proposed fraud claims arise entirely out
of allegations that Engel and Morales intended to deceive the
City and that the City relied on those statements when it
awarded contracts to defendants’ companies. Celious’s proposed
allegations, therefore, do not support a claim for fraud against
Engel and Morales.
Celious’s proposed negligent misrepresentation claim is
based on the same facts as his proposed fraud claims, with the
addition of allegations that Celious and Maroon Society
reasonably relied on the assumption that Engel and Morales
would provide truthful information about their companies during
the bidding process. The elements of a claim for negligent
misrepresentation are (1) the misrepresentation of a past or
existing material fact, (2) without reasonable ground for believing
it to be true, (3) with intent to induce another’s reliance on the
fact misrepresented, (4) justifiable reliance on the
misrepresentation, and (5) resulting damage. (Borman v. Brown
17
(2021) 59 Cal.App.5th 1048, 1060.) To state such a claim, the
plaintiff must allege that the defendant intended to induce the
plaintiff’s reliance on the false statement. (Tindell v. Murphy
(2018) 22 Cal.App.5th 1239, 1252–1254 (Tindell.) It is not
sufficient to allege only that the defendant intended to induce a
third party’s reliance. (Ibid.)
Celious alleges that Engel and Morales made the alleged
false statements supporting his negligent misrepresentation
claim with the intent to induce the City’s reliance on them. He
does not allege that defendants intended to induce his or Maroon
Society’s reliance on any false statements. Celious’s proposed
allegations, therefore, do not support a claim for negligent
misrepresentation against Engel and Morales. (See Tindell,
supra, 22 Cal.App.5th at pp. 1252–1254.)
In short, the trial court did not abuse its discretion when it
denied Celious leave to file a third amended complaint that added
claims for fraud and negligent misrepresentation against Morales
and Engel.
2. The sanctions motion
Celious next argues that the trial court erred when it
awarded Morales over $17,000 in monetary sanctions after
finding Celious engaged in bad-faith litigation tactics when he
repeatedly withdrew his motions seeking leave to file a third
amended complaint. We disagree.
2.1. Applicable law and standard of review
Section 128.5 allows a trial court to impose reasonable
attorney fees as sanctions for bad faith actions or tactics that are
frivolous or solely intended to cause unnecessary delay. (§ 128.5,
subd. (a); Zarate v. McDaniel (2023) 97 Cal.App.5th 484, 488
(Zarate).) Conduct is frivolous if it is totally and completely
18
without merit or undertaken for the sole purpose of harassing the
opposing party. (Brubaker v. Strum (2023) 87 Cal.App.5th 497,
511.) This standard is met where “ ‘ “any reasonable attorney
would agree that the motion was totally devoid of merit.” ’ ”
(Ibid.)
A finding of bad faith does not require a determination that
the sanctioned party acted with an evil motive. (West Coast
Development v. Reed (1992) 2 Cal.App.4th 693, 702.) Conduct
that is technically authorized by rule or statute may be found to
have been done in bad faith if it “go[es] beyond that which is by
any standard appropriate under the circumstances.” (Ibid.)
Thus, parties may be sanctioned for conduct that, even if
technically correct on legal grounds, “unreasonably or
unnecessarily injures the opposing counsel or party.” (Ibid.)
We generally review a trial court’s order awarding
sanctions under Section 128.5 for abuse of discretion. (Wallis v.
PHL Associates, Inc. (2008) 168 Cal.App.4th 882, 893.)
2.2. The safe harbor provision does not apply to
Celious repeatedly withdrawing his motions
seeking leave to file a third amended complaint
Celious contends that the trial court should have denied
Morales’s motion for sanctions because Morales did not comply
with Section 128.5’s safe harbor provision as it applies to Celious
repeatedly withdrawing his motions seeking leave to file an
amended complaint. This argument lacks merit.
Section 128.5 includes a safe harbor provision for the
making or opposing of a motion or other document that can be
withdrawn. (See § 128.5, subd. (f)(1)(B).) It states that where the
challenged action or tactic is the making or opposing of a written
motion that “can be withdrawn or appropriately corrected,” a
19
motion for sanctions cannot be filed with the court unless the
challenged action has not been withdrawn or corrected “21 days
after service of the [sanctions] motion or [within] any other period
as the court may prescribe.” (Ibid., italics added.)
We independently review questions of statutory
interpretation. (Zarate, supra, 97 Cal.App.5th at p. 489.) The
goal of statutory interpretation is to ascertain the Legislature’s
intent so that we can effectuate the law’s purpose. (Broadcast
Music, Inc. v. Structured Asset Sales, LLC (2022) 75 Cal.App.5th
596, 604–605.) “If a statute is clear and unambiguous, the
obvious meaning must ordinarily be accepted.” (Ibid.)
The language of Section 128.5’s safe harbor provision is
clear and unambiguous. It applies to the filing or opposing of a
motion, pleading, or other document that can be withdrawn. (See
§ 128.5, subd. (f)(1)(B).) But the filing or opposing of motions,
pleadings, or other documents that can be withdrawn is not the
only type of litigation conduct that can give rise to sanctions
under Section 128.5. (See, e.g., In re Marriage of Sahafzadeh-
Taeb & Taeb (2019) 39 Cal.App.5th 124, 147 (Taeb).)
Here, the conduct supporting the trial court’s award of
sanctions was Celious’s tactic of repeatedly withdrawing his
motions seeking leave to file an amended complaint. The act of
withdrawing a filing is not itself the filing of a motion or other
document that can be withdrawn. Although Celious argues that
the safe harbor provision could have been used to give him time
to cease withdrawing his motions, Section 128.5 does not require
moving parties to give litigants time to cease engaging in every
type of problematic conduct. It only requires a safe harbor period
for the filing or opposing of motions or other documents that can
be withdrawn. The safe harbor provision, therefore, does not
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apply to Celious’s tactic of repeatedly withdrawing his motions
seeking leave to amend. (See Taeb, supra, 39 Cal.App.5th at
p. 147.) Celious cites no authority that supports a contrary
conclusion.
We reject Celious’s assertion that by repeatedly
withdrawing his motions seeking leave to file an amended
complaint, he engaged in conduct that the safe harbor provision
encourages, and to punish him for such conduct undermines the
purpose of Section 128.5. The trial court found that Celious
repeatedly withdrew his motions in bad faith and as a
gamesmanship tactic, through which he sought to gain an unfair
pleading advantage over Morales and to delay the trial court
proceedings. Such tactics fall squarely within the conduct that
Section 128.5 is intended to curb. (Levy v. Blum (2001)
92 Cal.App.4th 625, 635.)
2.3. The sanctions order articulates the trial court’s
ruling with sufficient particularity
Celious next argues that the sanctions order must be
reversed because the record does not contain a “particularized,
evidence-based showing of subjective bad faith.” He argues that
the trial court failed to identify any specific tactical revisions to
his proposed third amended complaints or his motions seeking
leave to amend that were facilitated by him withdrawing two of
his motions seeking leave to amend. This argument lacks merit.
An order imposing sanctions must be “in writing and shall
recite in detail the action or tactic or circumstances justifying the
order.” (§ 128.5, subd. (c).) Thus, before imposing sanctions, the
court “must (a) state specific circumstances giving rise to the
award of attorney fees and (b) articulate with particularity the
basis for finding the sanctioned party’s conduct reflected tactics
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or actions performed in bad faith and that were frivolous or
designed to harass or cause unnecessary delay.” (Childs v.
PaineWebber Incorporated (1994) 29 Cal.App.4th 982, 996
(Childs).) “[N]o more is required than a written factual recital,
with reasonable specificity, of the circumstances that led the trial
court to find the conduct before it sanctionable under the relevant
code section.” (Ibid.) “This means the court’s written order
should be more informative than a mere recitation of the words of
the statute.” (Ibid.)
Here, the trial court’s written sanctions order satisfies
Section 128.5, subdivision (c)’s requirements because it states the
specific circumstances giving rise to the award of sanctions and
articulates with particularity the basis for its findings that
Celious’s conduct supports such an award. (See Childs, supra,
29 Cal.App.4th at p. 996.) The order recites in detail the
procedural history surrounding Celious’s numerous motions
seeking leave to file a third amended complaint. The order
provides a timeline detailing when Celious filed or withdrew each
motion, when Morales opposed Celious’s motions, and when the
court ruled on each motion that was not withdrawn. The order
also describes the grounds for each of Celious’s motion, the
grounds for each of Morales’s oppositions, and the grounds for
each of the court’s rulings. The order also explains why the court
found that Celious acted in bad faith and with the intent to delay
the proceedings below when he withdrew two of those motions.
Celious cites no authority supporting the proposition that the
court needed to provide more detail about the basis for its
sanctions order.
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2.4. Substantial evidence supports the trial court’s
sanctions order
Celious next argues that insufficient evidence supports the
trial court’s sanctions order. We disagree.
After the trial court denied his first motion seeking leave to
file a third amended complaint, Celious filed four additional
motions, all of which sought essentially the same relief, and none
of which cured the defects that the trial court identified in his
first motion. Of those four additional motions, Celious withdrew
two of them after Morales filed oppositions pointing out why
those motions failed to address the defects undermining Celious’s
previous motions. After withdrawing those two motions,
however, Celious did not cure the defects in his prior motions
that Morales and the trial court previously identified. Instead,
Celious continued to file meritless motions seeking the same
relief that the trial court repeatedly denied. On this record, it
was more than reasonable for the trial court to find that Celious’s
“repeated withdrawals constitute bad faith tactics, designed to
take unfair