ARMANDO GONZALEZ, ET AL. VS LAW OFFICE OF GUADALUPE T. GARCIA, APC, ET AL.

Tentative Rulings

Case Number: 19STCP01559    Hearing Date: December 18, 2019    Dept: 94

REJECTION OF AWARD AND REQUEST FOR TRIAL

AFTER ATTORNEY-CLIENT FEE ARBITRATION

(Bus. & Prof. Code, § 6200, et seq.)

TENTATIVE RULING:

Request to Reject Award and Request for Trial After Attorney-Client Fee Arbitration by Elizabeth Sanchez is DISMISSED.

ANALYSIS:

On April 26, 2019, Armando Gonzalez (“Gonzalez”) and Elizabeth Sanchez (“Sanchez”) filed this “Rejection of Award and Request for Trial After Attorney-Client Fee Arbitration” (“the Rejection and Request”). The Rejection and Request asserts the award from the attorney-client fee dispute arbitration was $2,508.22, but that the amount of attorneys’ fees and costs in dispute is $9,672.70. The Rejection and Request asks the Court to reject the award and hold a trial.

On May 20, 2019, Gonzalez was struck from the Rejection and Request for failure to pay first appearance fees. At the initial hearing on November 13, 2019, Sanchez requested the services of a Spanish interpreter, but none was readily available. As a result, the Court continued the hearing to December 18, 2019. To date, no opposition has been filed.

Legal Standard

An action for Rejection of Award and Request for Trial After Attorney-Client Fee Arbitration may be brought pursuant to Business and Professions Code section 6200, et seq. Business and Professions Code section 6204 states in relevant part:

(b) If there is an action pending, the trial after arbitration shall be initiated by filing a rejection of arbitration award and request for trial after arbitration in that action within 30 days after service of notice of the award.

. . .

(c) If no action is pending, the trial after arbitration shall be initiated by the commencement of an action in the court having jurisdiction over the amount of money in controversy within 30 days after service of notice of the award. After the filing of such an action, the action shall proceed in accordance with the provisions of Part 2 (commencing with Section 307) of the Code of Civil Procedure, concerning civil actions generally.

(Code Civ. Proc., § 6204, subd. (c).)

Discussion

The instant action was brought pursuant to Business and Professions Code section 6204, subdivision (c), as there was no prior pending action. The filing of the Rejection and Request, however, has not initiated an action because under Code of Civil Procedure section 307. Under Business and Professions Code section 6204, this “action shall proceed in accordance with the provisions of Part 2 (commencing with Section 307) of the Code of Civil Procedure, concerning civil actions generally.” (Code Civ. Proc., § 6402, subd. (c).) Under Part 2 of the Code of Civil Procedure, “[t]he pleadings allowed in civil actions are complaints, demurrers, answers, and cross-complaints.”

The Rejection and Request filed by Sanchez on Form ADR-104 is not a complaint as it does not set forth any cause of action. It also specifically states that it “is being filed with a complaint commencing a new action. (A request for trial must be filed in a pending case or with a complaint commencing a new action.)” (Rejection and Request, Form ARD-104, ¶3b (emphasis added).) Sanchez checked this paragraph off in the Rejection and Request she filed with the Court.

Additionally, The Rejection and Request Form ADR-104 specifically states: “NOTICE: Please read Alternative Dispute Resolution form ADR-105, Information Regarding Rights After Attorney-Client Fee Arbitration, promptly and before completing this form. There are short deadlines for requesting court relief after an attorney-client fee arbitration award.” (Rejection and Request for Trial, Form ADR-104, “Notice.”) Judicial Council Form ADR-105, “Information Regarding Rights After Attorney-Client Fee Arbitration” explains that Form ADR-104 must be filed in conjunction with a complaint and that Judicial Council Forms PLD-C-001 through PLD-C-001(3) may be used to commence this action. (ADR-105, ¶F(2).)

Finally, an action under Business and Professions Code section 6204, subdivision (c) must be commenced “within 30 days after service of notice of the award.” (Bus. & Profs. Code, § 6204, subd. (c).) The Rejection and Request states that arbitration award was made on March 27, 2019 and served by mail on the March 29, 2019. (Rejection and Request, Form ARD-104, ¶¶5a, 6.) As no action has properly been commenced under Business and Professions Code section 6204 to date, any attempt to file a complaint now would be untimely.

Therefore, the Rejection of Award and Request for Trial After Attorney-Client Fee Arbitration is hereby DISMISSED.

Court clerk to give notice.

Case Number: 19STCP01559    Hearing Date: November 13, 2019    Dept: 94

Gonzalez, et al. v. Law Office of Guadalupe T. Garcia APC

REJECTION OF AWARD AND REQUEST FOR TRIAL

AFTER ATTORNEY-CLIENT FEE ARBITRATION

(Bus. & Prof. Code, § 6200, et seq.; Code Civ. Proc., § 1285, et seq.)

TENTATIVE RULING:

Petition to Reject Award and Request for Trial After Attorney-Client Fee Arbitration is DENIED.

ANALYSIS:

I. Background

On April 26, 2019, Petitioners Armando Gonzalez and Elizabeth Sanchez filed this petition for Rejection of Award and Request for Trial After Attorney-Client Fee Arbitration. Petitioners assert the award from the arbitration of their attorney-client fee dispute was $2,508.22. Petitioners contend the amount of attorneys’ fees and costs in dispute is actually $9,672.70. Thus, Petitioners reject the award and request a trial.

On May 20, 2019, Armando Gonzalez was stricken from the petition for failure to pay the first appearance fee.

On August 27, 2019, the court continued the Petition’s hearing date from August 30, 2019 to November 13, 2019.

On October 16, 2019, Petitioner Elizabeth Sanchez filed a letter requesting additional time to attend the hearing because she could not appear on November 13, 2019 due to injuries. She attached medical proof. She stated that the next available time she could attend a hearing would be August 7, 2020.

II. Legal Standard

With regard to timing of the petition, Business and Professions Code section 6204 states in relevant part:

(b) If there is an action pending, the trial after arbitration shall be initiated by filing a rejection of arbitration award and request for trial after arbitration in that action within 30 days after service of notice of the award. If the rejection of arbitration award has been filed by the plaintiff in the pending action, all defendants shall file a responsive pleading within 30 days following service upon the defendant of the rejection of arbitration award and request for trial after arbitration. If the rejection of arbitration award has been filed by the defendant in the pending action, all defendants shall file a responsive pleading within 30 days after the filing of the rejection of arbitration award and request for trial after arbitration. Service may be made by mail on any party who has appeared; otherwise service shall be made in the manner provided in Chapter 4 (commencing with Section 413.10) of Title 5 of Part 2 of the Code of Civil Procedure. Upon service and filing of the rejection of arbitration award, any stay entered pursuant to Section 6201 shall be vacated, without the necessity of a court order.

(c) If no action is pending, the trial after arbitration shall be initiated by the commencement of an action in the court having jurisdiction over the amount of money in controversy within 30 days after service of notice of the award. After the filing of such an action, the action shall proceed in accordance with the provisions of Part 2 (commencing with Section 307) of the Code of Civil Procedure, concerning civil actions generally.

With regard to the merits, Code of Civil Procedure, section 1286.4 states that the court shall vacate the arbitration award if it determines any of the following:

(1) The award was procured by corruption, fraud or other undue means.

(2) There was corruption in any of the arbitrators.

(3) The rights of the party were substantially prejudiced by misconduct of a neutral arbitrator.

(4) The arbitrators exceeded their powers and the award cannot be corrected without affecting the merits of the decision upon the controversy submitted.

(5) The rights of the party were substantially prejudiced by the refusal of the arbitrators to postpone the hearing upon sufficient cause being shown therefor or by the refusal of the arbitrators to hear evidence material to the controversy or by other conduct of the arbitrators contrary to the provisions of this title.

(6) An arbitrator making the award either: (A) failed to disclose within the time required for disclosure a ground for disqualification of which the arbitrator was then aware; or (B) was subject to disqualification upon grounds specified in Section 1281.91 but failed upon receipt of timely demand to disqualify himself or herself as required by that provision. However, this subdivision does not apply to arbitration proceedings conducted under a collective bargaining agreement between employers and employees or between their respective representatives.” (Code Civ. Proc., § 1286.2(a).)

III. Analysis

Petitioner has not filed a proof of service showing the Petition was served on Respondents. Thus, the court would need to continue the hearing to allow service on Respondents.

Notwithstanding the lack of proof of service, Petitioner would not prevail on the merits.

In petitioning to reject the award and request a trial after attorney-client fee dispute arbitration, the petitioner must either file the petition in a pending action (i.e., a court case concerning the attorney-client fee dispute involved in the arbitration is already pending, and this Rejection of Award and Request for Trial is being filed in that action) or in a new action (i.e., this Rejection of Award and Request for Trial is being filed with a complaint commencing a new action). (See Petition [form ADR-104] ¶ 3; see also Bus. & Prof. Code, § 6204(b), (c).)

Here, no complaint has been filed. Thus, the Petition was not filed in a pending action or in a new action. Thus, Petitioner’s Petition for Rejection of Award and Request for Trial must be denied.

Even if Petitioner only sought to vacate the arbitration award, Petitioner has not established any grounds for such relief as provided by section 1286.4(a).

IV. Conclusion & Order

In light of the foregoing, the Petition is DENIED.

Petitioning party is ordered to give notice.

Parties who intend to submit on this tentative must send an email to the Court at SMCdept94@lacourt.org as directed by the instructions provided on the court website at www.lacourt.org. If the department does not receive an email and there are no appearances at the hearing, the motion will be placed off calendar.