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California Civil Procedure, Keyed to Levine, 6th Ed.
Interstate Specialty Marketing, Inc. v. ICRA Sapphire, Inc.
Citation:
217 Cal. App. 4th 708, 158 Cal. Rptr. 3d 743 (2013)Facts
Interstate Specialty Marketing filed a verified complaint in July 2011 alleging breach of contract against ICRA Sapphire for failure to complete a software conversion project. Interstate attached what it believed was a true and correct copy of the agreement dated November 14-15, 2002, though it had conducted a diligent search and could not locate a signed version. Sapphire filed a cross-complaint in September 2011 attaching the actual signed agreement dated November 26, 2002. Interstate filed an amended complaint in October 2011 but still attached the incorrect November 14-15 document. Through discovery responses in late 2011 and early 2012, Interstate admitted the November 14-15 document was not the final expression of the parties’ agreement. In March 2012, Sapphire filed a motion for summary judgment based solely on the document error. Interstate did not seek to amend its complaint until June 5, 2012, just seventeen days before the scheduled hearing. On June 22, 2012, the trial court denied the summary judgment motion, granted Interstate’s motion to amend, but also set an OSC regarding sanctions on its own motion. After a hearing on July 13, 2012, the court awarded Sapphire $5,076.16 in sanctions, finding Interstate’s conduct reprehensible and concluding the safe harbor period had run from the filing of the summary judgment motion in March.
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