CDLC Catering v. Klein CA2/8

Filed 4/12/16 CDLC Catering v. Klein CA2/8 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION EIGHT

CDLC CATERING, INC., B263158

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC487608) v.

WENDY KLEIN,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Richard E. Rico, Judge. Affirmed.

Herbert Abrams for Plaintiff and Appellant.

Reback, McAndrews, Kjar, Warford & Stockalper and Albert E. Cressey III for Defendant and Respondent.

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Plaintiff CDLC Catering, Inc. (CDLC), appeals the judgment following the trial court’s grant of summary judgment in favor of defendant tax accountant Wendy Klein on a claim for accounting malpractice. We affirm. FACTUAL AND PROCEDURAL BACKGROUND Except as noted, the facts are undisputed. In May 2010, Klein entered an oral agreement with chef and restauranteur Bruno Baio to assist with the formation of CDLC. According to an invoice dated May 31, 2010, CDLC paid Klein $250 for management advisory services rendered on May 4, 2010, described as “help w[i]th online incor[po]ration.” As reflected in a second invoice dated June 30, 2010, CDLC paid Klein $50 for “follow up on new company corp status” on June 3, 2010, and $50 to “apply for FEIN [(federal employment identification number)]” on June 30, 2010. According to Klein and Baio’s testimony, Klein rendered no further services for CDLC. On July 1, 2010, Baio sold 500 shares of CDLC to Clyde Gomez for $115,000, giving Gomez 50 percent ownership of the company. Both Baio and Klein testified Klein was not involved in the transaction or the issuance of stock for CDLC. Klein further testified she never met Gomez or had any interactions with him, and he never engaged her professional services for any reason. Gomez confirmed he had never met or spoken to Klein. Gomez and CDLC eventually filed a series of lawsuits in the aftermath of this transaction. On May 3, 2011, Gomez personally sued Baio, Klein, CDLC and others, alleging he was fraudulently induced to enter the transaction with Baio. He eventually dismissed Klein and CDLC from that lawsuit without prejudice. After a bench trial, the superior court ruled in favor of the defendants, rejecting Gomez’s position that his $115,000 was intended to be invested in CDLC rather than given directly to Baio to purchase 50 percent of CDLC from him. Gomez appealed, and the Court of Appeal affirmed. CDLC filed this lawsuit on July 2, 2012, alleging accounting malpractice against Klein. It claims Klein “negligently and carelessly rendered her services in that she failed to insure that the stock of [CDLC] was issued in exchange for cash in the sum of