Judge Holly J. Fujie, Case 22STCP03715 2023-01-04 Tentative Ruling

The Court has considered the moving papers. No opposition papers were filed. Any opposition papers were required to have been filed and served at least nine court days before the hearing under California Code of Civil Procedure (“CCP”) section 1005, subdivision (b).

On October 11, 2022, Petitioners filed a petition to compel arbitration (the “Petition”). The Petition requests that the Court issue an order compelling Respondents to arbitrate the claims that Petitioners submitted to the Judicial Arbitration and Mediation Services (“JAMS”).

The Petition alleges that Petitioners and Respondents entered into a total of five promissory notes (collectively, the “Notes”). The Notes all contain a provision stating: “Any dispute, claim or controversy arising out of or relating to this Agreement or the breach,

termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in Los Angeles, California before one arbitrator.” (See Exhibits 1-5.) Disputes have arisen regarding the Notes and on July 29, 2022, Petitioners submitted an arbitration demand to JAMS. (Declaration of A. Raymond Hamrick, III (“Hamrick Decl.”) ¶ 2, Exhibit 6.) Petitioners contacted Respondents to notify them of the arbitration demand but and have not received any communication from Respondents. (See Hamrick Decl. ¶¶ 3, 5.)

On October 31, 2022, Petitioners filed a notice of motion and setting a hearing date on January 4, 2023 for an order compelling arbitration of their claims.

Under CCP section 1281, a written agreement to submit to arbitration an existing controversy or a controversy thereafter arising is valid, enforceable, and irrevocable, save upon such grounds as exist for the revocation of any contract. (CCP § 1281.) CCP section 1290 authorizes a party to commence an arbitration proceeding by filing a petition. (CCP § 1290.) Any person named as a respondent in a petition may file a response thereto. (Id.) The allegations of a petition are deemed to be admitted by a respondent duly served therewith unless a response is duly served and filed. (Id.) A petition to compel arbitration shall be heard in a summary way in the manner and upon the notice provided by law for the making and hearing of motions, except that not less than 10 days' notice of the date set for the hearing on the petition shall be given. (CCP § 1290.2.) On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party to the agreement refuses to arbitrate that controversy, the court shall order the petitioner and the respondent to arbitrate the controversy unless grounds exist not to compel arbitration. (CCP § 1281.2.) Under California law, the burden of persuasion is always on the moving party to prove the existence of an arbitration agreement with the opposing party by a preponderance of the evidence. (Gamboa v. Northeast Community Clinic (2021) 72 Cal.App.5th 158, 169.)

The Petition sufficiently satisfies Petitioners’ burden to demonstrate the existence of the arbitration agreements in the Notes. In addition, the Court’s records indicate that Respondents were served with the Petition and accompanying papers, as well as the October 31, 2022 notice by overnight delivery. This method of service is consistent with Rule 8 of JAMS Arbitration Rules, which are incorporated into the Notes’ arbitration agreements. (See Exhibits 1-5, 8.)

The Court finds that Petitioners have met their burden to show the existence of enforceable arbitration agreements. For this reason and because it is unopposed, the Court GRANTS the Petition. (Sexton v. Superior Court (1997) 58 Cal.App.4th 1403, 1410.)

In consideration of the current COVID-19 pandemic situation, the Court strongly encourages that appearances on all proceedings, including this one, be made by LACourtConnect if the parties do not submit on the tentative. If you instead intend to make an appearance in person at Court on this matter, you must send an email by 2 p.m. on the last Court day before the scheduled date of the hearing to SMC_DEPT56@lacourt.org stating your intention to appear in person. The Court will then inform you by close of business that day of the time your hearing will be held. The time set for the hearing may be at any time during that scheduled hearing day, or it may be necessary to schedule the hearing for another date if the Court is unable to accommodate all personal appearances set on that date. This rule is necessary to ensure that adequate precautions can be taken for proper social distancing.

Parties who intend to submit on this tentative must send an email to the Court at SMC_DEPT56@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.

Hon. Holly J. Fujie

Judge of the Superior Court