WORLDWIDE ATM INC., A CALIFORNIA CORPORATION VS OTHMAN M. GHALAB, ET AL.

Tentative Rulings

Case Number: 19STLC06935    Hearing Date: February 23, 2021    Dept: 25

Case Number: 20STCP03422    Hearing Date: February 23, 2021    Dept: 25

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HEARING DATE: Tue., February 23, 2021 JUDGE /DEPT: Blancarte/25

CASE NAME: Greenstone v. UBS Financial Services, Inc., et al.

CASE NUMBER: 20STCP03422 PET. FILED: 10-20-20

PROCEEDINGS: VERIFIED PETITION TO CONFIRM FINRA DISPUTE RESOLUTION ARBITRATION AWARD

MOVING PARTY: Petitioner Michael Greenstone

RESP. PARTY: None

PETITION TO CONFIRM ARBITRATION AWARD

(CCP § 1285 et seq.)

TENTATIVE RULING:

The Verified Petition to Confirm FINRA Dispute Resolution Arbitration Award is CONTINUED TO APRIL 20, 2021 at 11:00 a.m. in Department 25 at the SPRING STREET COURTHOUSE. At least 16 court days before the next scheduled hearing, Petitioner must file supplemental papers addressing the deficiencies noted herein. Failure to do so may result in the Petition being placed off calendar or denied.

SERVICE:

[X] Proof of Service Timely Filed (CRC, rule 3.1300) OK

[X] Correct Address (CCP §§ 1013, 1013a) OK

[X] 16/21 Court Days Lapsed (CCP §§ 12c, 1005(b)) OK

OPPOSITION: None filed as of February 17, 2021 [ ] Late [X] None

REPLY: None filed as of February 17, 2021 [ ] Late [X] None

ANALYSIS:

1. Background

On May 21, 2020, arbitrator Linda J. Baer (the “Arbitrator”) with FINRA Dispute Resolution Services issued an Arbitration Award in favor of Petitioner Michael Greenstone (“Petitioner”) and against Respondent UBS Financial Services, Inc. (“UBS”). The Award requires the expungement of Occurrence Number 572803 from the Central Registration Depository (the “CRD”). The CRD is a database maintained by FINRA for firms and individuals that participate in the U.S. securities industry.

On October 20, 2020, Petitioner filed the instant Verified Petition to Confirm FINRA Dispute Resolution Arbitration Award (the “Petition”) against UBS Financial Services, Inc. (“UBS”) and the Financial Industry Regulatory Authority (“FINRA”). To date, no opposition has been filed.

1. Legal Standard

“Regardless of the particular relief granted, any arbitrator's award is enforceable only when confirmed as a judgment of the superior court.” (O'Hare v. Municipal Resource Consultants (2003) 107 Cal.App.4th 267, 278.) “Once a petition to confirm an award is filed, the superior court must select one of only four courses of action: it may confirm the award, correct and confirm it, vacate it, or dismiss the petition.” (EHM Productions, Inc. v. Starline Tours of Hollywood, Inc. (2018) 21 Cal.App.5th 1058, 1063.) “It is well settled that the scope of judicial review of arbitration awards is extremely narrow.” (California Faculty Assn. v. Superior Court (1998) 63 Cal.App.4th 935, 943.) “Neither the trial court, nor the appellate court, may ‘review the merits of the dispute, the sufficiency of the evidence, or the arbitrator's reasoning, nor may we correct or review an award because of an arbitrator's legal or factual error, even if it appears on the award's face. Instead, we restrict our review to whether the award should be vacated under the grounds listed in section 1286.2. [Citations.]’” (Id.)

1. Discussion

A. Filing Requirements (Code Civ. Proc., § 1285.4)

Code of Civil Procedure section 1285.4 states: “A petition under this chapter shall:

1. Set forth the substance of or have attached a copy of the agreement to arbitrate unless the petitioner denies the existence of such an agreement.

2. Set forth the names of the arbitrators.

(c) Set forth or have attached a copy of the award and the written opinion of the arbitrators, if any.”

Petitioner has attached a copy of the parties’ agreement to arbitrate their dispute with FINRA and attached a copy of the Arbitration Award, which includes the names of the neutral arbitrator. Thus, Petitioner has satisfied Section 1285.4.

B. Service of the Petition and Notice of Hearing (Code Civ. Proc., § 1290.4)

Code of Civil Procedure, section 1290.4 states, in pertinent part:

“(a) A copy of the petition and a written notice of the time and place of the hearing thereof and any other papers upon which the petition is based shall be served in the manner provided in the arbitration agreement for the service of such petition and notice.

(b) If the arbitration agreement does not provide the manner in which such service shall be made and the person upon whom service is to be made has not previously appeared in the proceeding and has not previously been served in accordance with this subdivision: ¶ (1) Service within this State shall be made in the manner provided by law for the service of summons in an action.

Here, the arbitration agreements submitted by Petitioner do not specify the manner in which the Petition and Notice of Hearing must be served. Thus, the Petition and Notice of Hearing must be served in the same manner as a summons. A summons must be served personally, by substitute service, by mail coupled with an acknowledgment of receipt, or by publication. (Code Civ. Proc., § 415.10, et seq.) Respondent FINRA was personally served on October 22, 2020. (11/5/20 Proof of Service.) However, Respondent UBS was only electronically served with the Petition and Notice of Hearing on October 21, 2020. (11/5/20 Proof of Service.) A summons cannot be served electronically, so this is insufficient to meet the service requirements of Section 1290.4

1. Service of the Arbitration Award (CCP § 1283.6) and Timing of Service of Petition (CCP §§ 1288, 1288.4)

Code of Civil Procedure section 1283.6 provides that: “The neutral arbitrator shall serve a signed copy of the award on each party to the arbitration personally or by registered or certified mail or as provided in the agreement.” (Emphasis added.) Here, the Arbitration Award states that it was served on the parties on May 26, 2020, but does not specify whether it was served via registered or certified mail. (Pet., Attach. 8(c).) However, “the sole function of the service of an award upon the parties to an arbitration is to give them notice of the existence and contents of the award.” (Murray v. Civil Service Emp. Ins. Co., supra, at p. 799.) The Court finds that function was satisfied here, and Respondents have not filed an opposition demonstrating otherwise.

In addition, a party may seek a court judgment confirming an arbitration award by filing and serving a petition no more than four years, but not less than 10 days, after the award is served. (Code Civ. Proc., §§ 1288, 1288.4.) Here, the parties were initially served with the Award on May 26, 2020, and this Petition was filed more than 10 days later, on October 20, 2020.

Thus, the Court finds that Petitioner has satisfied the requirements of Sections 1283.6, 1288, and 1288.4.

1. Conclusion & Order

For the foregoing reasons, the Verified Petition to Confirm FINRA Dispute Resolution Arbitration Award is CONTINUED TO APRIL 20, 2021 at 11:00 a.m. in Department 25 at the SPRING STREET COURTHOUSE. At least 16 court days before the next scheduled hearing, Petitioner must file supplemental papers addressing the deficiencies noted herein. Failure to do so may result in the Petition being placed off calendar or denied.

Moving party is ordered to give notice.