APPEAL from an order of the Superior Court of Los Angeles County, William F. Highberger, Judge. Affirmed. (Los Angeles County Super. Ct. No. BC 242306).
The opinion of the court was delivered by: Flier, J.
CERTIFIED FOR PUBLICATION
Steven Teitelbaum (Teitelbaum) and Los Angeles Coin Company LLC (L.A. Coin Company) appeal from an order of the trial court directing respondents Indra and Mary Jhaveri, doing business as Kant-Sar International (the Jhaveris), to execute and deliver to appellants a partial satisfaction of the judgment entered in this case.
The Jhaveris previously obtained a jury verdict against appellants and their co-defendant, Brian Dubois (Dubois) in the total amount of $5.2 million, and the court entered a judgment for that sum together with prejudgment interest.*fn1 The judgment consisted of (1) compensatory damages of $1.2 million against all defendants, jointly and severally, for breach of contract and fraud; (2) punitive damages in the sums of $1 million against Dubois individually, $2 million against Teitelbaum individually and $1 million against L.A. Coin Company; and (3) prejudgment interest.
In a nonpublished opinion, Jhaveri v. Teitelbaum (Nov. 28, 2007, B182898) (Jhaveri I), we affirmed the judgment in part and reversed in part. We affirmed the jury‟s award of compensatory and punitive damages, but we reduced the amount of prejudgment interest awarded by the court.
The Jhaveris brought a separate enforcement action (Jhaveri II), alleging Teitelbaum and Dubois conspired with their wives (Cherie Teitelbaum and Connie Dubois), L.A. Coin Company and others to fraudulently convey property to avoid payment of the underlying judgment. As described more specifically, post, the Duboises entered into a global settlement of Jhaveri I and Jhaveri II with the Jhaveris for the sum of $1 million. The Duboises paid only a portion of the settlement sum, $245,000, to the Jhaveris before filing for bankruptcy. Appellants filed a motion in the court below to compel the Jhaveris to execute and deliver a partial satisfaction of judgment in the present action, in the amount of one-half the face amount of the settlement, or $500,000. The court below ordered the Jhaveris to execute and deliver a partial satisfaction of judgment in the amount of one-fourth of the sums actually received by the Jhaveris under the settlement agreement, about $61,000.
Appellants appeal from the court‟s order, asserting that no substantial evidence supports the order and that the trial court incorrectly applied statutory provisions in allocating the amount of credit against the judgment. We disagree and therefore affirm.
FACTS AND PROCEDURAL HISTORY
The Jhaveris filed Jhaveri I against appellants and Dubois for breach of contract and fraud, obtaining a jury verdict in their favor for a total of $5.2 million, as noted above. Just prior to the verdict in Jhaveri I, the Jhaveris discovered Teitelbaum and Dubois had transferred community real property into the name of each wife, as her sole and separate property, and made other conveyances to avoid collection of any judgment the Jhaveris might obtain in this action.
2. Fraudulent Conveyance Action
In December 2004, the Jhaveris filed an action for fraudulent conveyances including as defendants Teitelbaum, Dubois, their spouses, L.A. Coin Company and others acting with them (Jhaveri II). In Jhaveri II, the Jhaveris alleged the defendants participated in fraudulent property transfers in violation of the Uniform Fraudulent Transfer Act (Civ. Code, §§ 3439-3439.12) (UFTA) as part of a larger conspiracy to avoid paying the judgment in Jhaveri I. In addition to equitable remedies, the complaint prayed for general, special and punitive damages against all defendants. The Jhaveris sought to recover at least $2 million, as well as compensatory and punitive damages, from Dubois and his wife, Connie.
3. Settlement by Duboises
In July 2005, the Jhaveris and the Duboises submitted to a court-ordered mediation in Jhaveri II. Appellants chose not to participate in the mediation. As a result of the mediation, the Jhaveris agreed to settle their claims against the Duboises globally for the sum of $1 million. As part of the settlement agreement, the Duboises agreed to assist the Jhaveris in collecting the Jhaveri I judgment and in prosecuting Jhaveri II.
The Jhaveris served notice of this settlement on appellants in September 2005.*fn2
The Duboises paid the Jhaveris $245,000 under the settlement agreement before filing for bankruptcy in November 2006.
4. Motion for Good Faith Settlement in Fraudulent Conveyance Action
In September 2005, appellants brought a motion in Jhaveri II for a determination of the good faith of the settlement between the Jhaveris and the Duboises under Code of Civil Procedure section 877.6, subdivision (a).*fn3 The court deferred ruling on the motion ordering further briefing regarding the allocation of the settlement and the financial condition of the Duboises. However, before the court could hear and issue a ruling on the continued motion, the Duboises filed a notice informing the court of their bankruptcy filing automatically staying any proceedings against them.
5. Motion for Execution of Partial Satisfaction of Judgment
Appellants returned to the court below in August 2007. They moved for an order requiring the Jhaveris to file an acknowledgment of partial satisfaction of judgment in the amount of $500,000, to be credited against the $1 million compensatory damages award entered jointly and severally against appellants and Dubois in the present action. (§ 724.110, subd. (b).)
The parties stipulated that the Jhaveris‟ settlement with the Duboises contemplated they would jointly pay the Jhaveris $1 million. The parties further stipulated that the settlement agreement was silent on how the $1 million should be allocated as between the Duboises in Jhaveri II and as between compensatory and punitive ...