Isolate Innovations v. Lisenko CA4/1
- Proceeding
- appeal from a judgment
- Trial court
- Superior Court of San Diego County · No. 37-2022-00022792-CU-IC-CTL
- Trial judge
- Carolyn M. Caietti
- Outcome
- affirmed — Affirmed.
- Area
- civil
- Panel
- Michele M. Castillo (author), Laurence D. Rubin, Bermudez
Analysis
The trial court granted summary judgment in favor of the defendant, ruling that the plaintiff's breach of contract and account claims were barred by the four-year statute of limitations because the plaintiff failed to produce substantial evidence that rent was paid within the limitations period. The Court of Appeal affirmed, holding that the plaintiff's evidence, when viewed in the light most favorable to the plaintiff, only established that rent was paid through March 2018, which was still outside the four-year window for a lawsuit filed in June 2022.
| Ruling reviewed | Standard | The court | The model |
|---|---|---|---|
Granting of summary judgment on statute of limitations grounds“The trial court did not err in doing so here. Because Isolate has not identified any evidence showing rent was paid through June 2018, it has failed to prove a triable issue of material fact as to when the statute of limitations began to run.” | de novo | correct | agree with court agree with court |
Authorities
- relied: Aguilar v. Atlantic Richfield Co. (2001) 25 Cal.4th 826 — Summary judgment serves to cut through pleadings to determine if trial is necessary.
- relied: Wilson v. 21st Century Ins. Co. (2007) 42 Cal.4th 713 — Standard of review for summary judgment is de novo, construing evidence liberally in favor of the losing party.
- relied: Cochran v. Cochran (1997) 56 Cal.App.4th 1115 — A cause of action for breach of contract accrues at the time of breach.
- relied: Sangster v. Paetkau (1998) 68 Cal.App.4th 151 — Evidence giving rise to mere speculation is insufficient to establish a triable issue of material fact.
- relied: King v. United Parcel Service, Inc. (2007) 152 Cal.App.4th 426 — Uncorroborated and self-serving declarations do not create a genuine issue of material fact.
- relied: Whitmire v. Ingersoll-Rand Co. (2010) 184 Cal.App.4th 1078 — A trial court may disregard a declaration that clearly contradicts the declarant's earlier deposition testimony.
The appellate opinion: sound — The court correctly applied the de novo standard of review and the four-year statute of limitations for contract claims. It properly weighed the evidence, distinguishing between speculative inferences and substantial evidence, and correctly applied the rule that contradictory declarations may be disregarded.
How this analysis was made · dispute it
unusual dispositionThe San Diego Superior Court granted Anthony Lisenko's motion for summary judgment on Isolate Innovations' breach of lease, open book account, and account stated claims, finding each cause of action time-barred under the four-year statute of limitations and disregarding Kevin Tucker's opposing declaration as contradicting his deposition testimony that the tenants stopped paying rent within the first twelve months. The Court of Appeal, reviewing de novo in a memorandum opinion, affirmed, holding that even construing the evidence liberally, Isolate showed at most that rent was paid through March 2018, which left the June 2022 complaint untimely.
| Ruling reviewed | Standard | The court | The model |
|---|---|---|---|
Grant of summary judgment on the ground that all causes of action were barred by the four-year statute of limitations (Code Civ. Proc., § 337)“Because Isolate has not identified any evidence showing rent was paid through June 2018, it has failed to prove a triable issue of material fact as to when the statute of limitations began to run.” | de novo | correct | unsure The court correctly stated the Aguilar/Wilson framework and the Cochran rule that a contract claim accrues at breach, and its inference-by-inference parsing of the rent evidence (current through January 2018, plus at most two more payments) is careful and fair to the losing party. But the opinion treats the lease as if the limitations period ran from a single accrual date when rent payments stopped, without addressing the continuous accrual doctrine that the Supreme Court in Aryeh applies to recurring periodic obligations such as monthly rent; Isolate's complaint sought rent through July 2018, and any installment falling due after mid-June 2018 could be independently timely. The opinion does not disclose whether Isolate raised continuous accrual or exactly when Tucker retook possession in July 2018, so I cannot tell whether the omission affects the result. |
Disregard of Tucker's opposing declaration (that other tenants continued to pay rent) as contradicting his earlier deposition testimony that the tenants stopped paying rent within the first twelve months“Although Tucker later attested that the other tenants continued paying rent, to the extent Isolate wishes us to read that declaration to mean rent was paid through June 2018, “uncorroborated and self-serving declarations” do not create a genuine issue of material fact.” | de novo | correct | agree with court The D'Amico rule as restated in Whitmire permits a court to disregard a summary judgment declaration that clearly contradicts the declarant's own deposition testimony, and the opinion notes Isolate did not even attempt to explain the contradiction. The additional reliance on King's 'uncorroborated and self-serving' language is weaker, since a declaration is not disregarded merely because it is self-serving, but the Whitmire ground independently supports the ruling. |
Authorities
- relied: Aguilar v. Atlantic Richfield Co. (2001) 25 Cal.4th 826 — Summary judgment cuts through the pleadings to determine whether trial is in fact necessary to resolve the dispute.
- relied: Wilson v. 21st Century Ins. Co. (2007) 42 Cal.4th 713 — Summary judgment is reviewed de novo, considering all evidence in the moving and opposing papers and liberally construing it in favor of the losing party.
- relied: Cochran v. Cochran (1997) 56 Cal.App.4th 1115 — A cause of action for breach of contract accrues at the time of breach, which starts the limitations period running.
- relied: Sangster v. Paetkau (1998) 68 Cal.App.4th 151 — Evidence giving rise to no more than speculation is not substantial and cannot establish a triable issue of material fact.
- relied: King v. United Parcel Service, Inc. (2007) 152 Cal.App.4th 426 — Uncorroborated and self-serving declarations do not create a genuine issue of material fact on summary judgment.
- relied: Whitmire v. Ingersoll-Rand Co. (2010) 184 Cal.App.4th 1078 — A trial court may disregard an opposing declaration that clearly contradicts the declarant's earlier deposition testimony and conclude no triable issue exists.
- missed: Aryeh v. Canon Business Solutions, Inc. (2013) 55 Cal.4th 1185 — Under the continuous accrual doctrine, each breach of a recurring periodic obligation is independently actionable, so claims for installments due within the limitations period are timely even if earlier installments are time-barred.
The appellate opinion: sound with gaps — The opinion applies the correct summary judgment standard, construes the rent evidence generously for Isolate, and properly applies the D'Amico/Whitmire rule to the contradictory declaration, answering the argument Isolate actually made. It does not, however, address the continuous accrual doctrine of Aryeh, which governs recurring monthly rent obligations and could render timely any installment falling due after mid-June 2018 within the February–July 2018 damages period Isolate pleaded.
Opinion
Filed 8/19/26 Isolate Innovations v. Lisenko CA4/1 NOT TO BE PUBLISHED IN 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.
COURT OF APPEAL, FOURTH APPELLATE DISTRICT
DIVISION ONE
STATE OF CALIFORNIA
ISOLATE INNOVATIONS, LLC, D086411
Plaintiff and Appellant, v. (Super. Ct. No. 37-2022- 00022792-CU-IC-CTL) ANTHONY LISENKO, Defendant and Respondent.
APPEAL from a judgment of the Superior Court of San Diego County, Carolyn M. Caietti, Judge. Affirmed. Demergian Law and David K. Demergian for Plaintiff and Appellant. G10 Law, Georgia Z. Schneider and Jared M. Salvati, for Defendant and Respondent. Isolate Innovations, LLC appeals the judgment entered against it after the trial court granted Anthony Lisenko’s motion for summary judgment on statute of limitations grounds. Resolving this matter by memorandum opinion (see generally People v. Garcia (2002) 97 Cal.App.4th 847), we affirm. I. A. Lisenko, Mauricio Calvi, George Panagiotou, and Costa Legal Center, APC entered a lease to rent office space from a corporation that has since assigned its relevant rights to Isolate. Kevin Tucker is the managing member of Isolate and was the president of the corporation that leased the office space to Lisenko and the other tenants. The lease began in August 2016 and was set to last through July 2021. Under the lease, if the tenants “fail[] to pay any Rent . . . and such failure continues for five (5) days after such payment is due and payable,” that nonpayment “shall constitute a default and breach of this Lease.” It is undisputed that Lisenko vacated the rental property and “no longer made or contributed to rent payments” under the lease as of January 2017. In deposition, Tucker testified that Lisenko was “the only one that [he] could rely on to pay the rent” because the other tenants “were, for lack of a better word, flakes.” He understood Lisenko, Calvi, and Panagiotou were business partners and Lisenko “was putting up the financial backing for the company, but they were partners.” When asked “when they stopped paying rent,” Tucker testified, “[w]ithin the first 12 months.” According to Tucker, after Lisenko left, Calvi “made one or two [rent] payments.” He explained how he served “some three-day notices” of past-due rent on Calvi and filed an unlawful detainer action “at some point in time,” in response to which Calvi “would come up with money for one month or something.” Tucker retook possession of the property in July 2018.
2 B. On June 13, 2022, Isolate sued Lisenko and the other tenants for allegedly breaching the lease. In the operative complaint, Isolate asserted claims for breach of contract, open book account, and account stated. Isolate claimed damages that include “past due rent from February 1, 2018[,] through July 31, 2018.” Lisenko moved for summary judgment. He argued, among other things, that “Isolate’s lawsuit and claims are barred by the statute of limitations” because he stopped paying rent more than four years before Isolate filed this lawsuit. Isolate opposed, arguing in part that “triable issues of material fact exist as to the date of breach of the Lease by all parties thereto and, therefore, when the applicable statute of limitations began.” (Italics omitted.) In support, Tucker submitted a declaration in which he attested that “[t]he other signatories to the Lease continued to occupy the Premises and pay Rent . . . after [Lisenko] claims to have moved.” He also attested that “the other co-signers of the Lease continued to occupy the Premises and pay Rent.” The trial court granted the motion and entered judgment in Lisenko’s favor and against Isolate after concluding “each cause of action is time- barred.” It found that, even if the tenants were jointly and severally liable, Tucker’s declaration about the other tenants paying rent “contradicts Tucker’s deposition testimony . . . of how the other tenants stopped paying rent within the first 12 months,” by August 2017, which is more than four years before the June 2022 filing of the lawsuit. II. Isolate contends triable issues of fact exist as to when the lease was breached, and thus when the statute of limitations began to run. Lisenko 3 argues Isolate forfeited this argument by not advancing it before the trial court and, in any event, no triable issue exists as to when the breach occurred. We address the merits without regard to forfeiture because we conclude summary judgment was proper on statute of limitation grounds. Summary judgment serves to “cut through the parties’ pleadings” to “determine whether, despite their allegations, trial is in fact necessary to resolve their dispute.” (Aguilar v. Atlantic Richfield Co. (2001) 25 Cal.4th 826, 843.) A court should grant summary judgment if no triable issue of material fact exists and the moving party is entitled to judgment as a matter of law. (Code Civ. Proc., § 437c(c).) We review summary judgment de novo, “considering all the evidence set forth in the moving and opposing papers except that to which objections were made and sustained” and liberally construing the evidence in the light most favorable to the losing party. (Wilson v. 21st Century Ins. Co. (2007) 42 Cal.4th 713, 717 [cleaned up].) Isolate’s contract and account claims are subject to a four-year statute of limitations. (Code Civ. Proc., § 337, subds. (a) & (b).) “A cause of action for breach of contract accrues at the time of breach, which then starts the limitations period running.” (Cochran v. Cochran (1997) 56 Cal.App.4th 1115, 1120.) Because Isolate filed this lawsuit in mid-June 2022, any breach occurring more than four years earlier, before mid-June 2018, would make its claims untimely. The lease defines breach to include nonpayment of rent. Although Lisenko stopped paying rent in January 2017, Isolate contends he and the other tenants are jointly and severally liable under the lease based on Civil Code section 1659, which presumes that parties “who unite in a promise [to] receive some benefit from the consideration” have 4 made a joint and several promise. Assuming joint and several liability, Isolate highlights evidence that Isolate appears to argue shows other tenants continued to pay rent through June 2018, as would be required for its claims to be timely. Based on a notice Tucker sent the tenants to demand payment of “the delinquent rent” for February 2018 through May 2018, Isolate contends we can infer “that rent was current through January 2018.” Viewing that evidence in the light most favorable to Isolate as the losing party, we agree. But that inference alone cannot save Isolate from summary judgment, as January 2018 still falls outside the four-year statute of limitations for the claims Isolate filed in June 2022. Isolate then points to Tucker’s testimony that Calvi (1) “made one or two payments” of rent after Lisenko left and (2) “would come up with money for one month or something” when an unlawful detainer was filed to argue that “payment would be forthcoming” on the past-due rent identified in the notice. Even construed liberally in Isolate’s favor, however, this evidence can at best be viewed to indicate two additional months of rent were paid following the notice. And those two additional months, which might make rent paid through March 2018, would not bring Isolate’s claims within the statute of limitations. To the extent Isolate suggests all delinquent rent in the notice was paid, on this record that claim veers into speculation. And “evidence that gives rise to no more than mere speculation cannot be regarded as substantial, and is insufficient to establish a triable issue of material fact.” (Sangster v. Paetkau (1998) 68 Cal.App.4th 151, 163.) Although Tucker later attested that the other tenants continued paying rent, to the extent Isolate wishes us to read that declaration to mean rent was paid through June 2018, “uncorroborated and self-serving declarations”
5 do not create a genuine issue of material fact. (King v. United Parcel Service, Inc. (2007) 152 Cal.App.4th 426, 433.) At best, the evidence Isolate identifies can be construed to show rent may have been paid through March 2018. And notably, Isolate fails to mention, let alone address, Tucker’s deposition testimony that the tenants stopped paying rent “[w]ithin the first 12 months.” “Where a declaration submitted in opposition to a motion for summary judgment motion clearly contradicts the declarant’s earlier deposition testimony or discovery responses, the trial court may fairly disregard the declaration and conclude there is no substantial evidence of the existence of a triable issue of fact.” (Whitmire v. Ingersoll-Rand Co. (2010) 184 Cal.App.4th 1078, 1087 [cleaned up].) The trial court did not err in doing so here. Because Isolate has not identified any evidence showing rent was paid through June 2018, it has failed to prove a triable issue of material fact as to when the statute of limitations began to run. Consequently, Isolate’s claims were untimely as a matter of law and summary judgment was thus proper.
6 III. We affirm. Lisenko is entitled to recover his appellate costs. (Cal. Rules of Court, rule 8.278(a).)
CASTILLO, Acting P. J.
WE CONCUR:
RUBIN, J.
BERMÚDEZ, J.
Cites, in this corpus
- Whitmire v. Ingersoll-Rand Co. B210211 · 2010-04-22
- Wilson v. 21st Century Insurance S141790 · 2007-12-19
- King v. United Parcel Service, Inc. C051657 · 2007-05-23
- Aguilar v. Atlantic Richfield Co. S086738 · 2001-07-11
- Sangster v. Paetkau A081624 · 1998-10-30
- Cochran v. Cochran B097156 · 1997-07-14