Judge: Maurice A. Leiter, Case: 20STCV18027, Date: 2024-06-04 Tentative Ruling

Case Number: 20STCV18027    Hearing Date: June 4, 2024    Dept: 54

Hearing Date: June 4, 2024

Department 54, Judge Maurice A. Leiter

Motion for Sanctions

Moving Party: Plaintiff Bree Valbuena

Responding Party: Defendants Birdwell California! LLC, Birdwell Retail, LLC, Mike D’Altorio, Geoff Clawson, Matt Jacobson and Charlie Willhoit

T/R:      PLAINTIFF’S MOTION FOR SANCTIONS IS GRANTED IN THE AMOUNT OF $37,212.50.

PLAINTIFF TO NOTICE. 

If the parties wish to submit on the tentative, please email the courtroom at SMCdept54@lacourt.org with notice to opposing counsel (or self-represented party) before 8:00 am on the day of the hearing.

The Court considers the moving papers, opposition and reply.

BACKGROUND

On May 12, 2020, Plaintiff Bree Valbuena filed a complaint against Defendants Birdwell California! LLC, Birdwell Retail, LLC, Mike D’Altorio, Geoff Clawson, Matt Jacobson, and Charlie Willhoit, asserting causes of action for discrimination, retaliation, wrongful discharge, breach of contract and fraudulent inducement of arbitration agreement. Plaintiff alleges that she was previously discriminated against by Defendants based on her pregnancy. The parties settled that dispute and agreed that Plaintiff would be re-hired and only could be terminated for cause for the first six months of Plaintiff’s new employment. Plaintiff alleges Defendants wrongfully terminated her within the first 6 months in violation of FEHA and CFRA and in breach of the settlement agreement.

On November 17, 2021, the Court granted Defendants’ motion to compel arbitration. On June 7, 2023, the Court granted Plaintiff’s motion vacating arbitration for Defendants’ failure to timely pay arbitration fees.

ANALYSIS

CCP § 1281.98(c) allows the non-drafting party of an arbitration agreement to recover “all attorney's fees and all costs associated with the abandoned arbitration proceeding” in the event of material breach by the drafting party. CCP § 1281.99(a) provides, “The court shall impose a monetary sanction against a drafting party that materially breaches an arbitration agreement pursuant to subdivision (a) of Section 1281.97 or subdivision (a) of Section 1281.98, by ordering the drafting party to pay the reasonable expenses, including attorney's fees and costs, incurred by the employee or consumer as a result of the material breach.”

The Court previously awarded Plaintiff attorney’s fees and costs in the amount of $118,000.21 under these provisions. Here, Plaintiff asserts Defendants have failed to pay the award. Plaintiff also requests the Court compel compliance with its previous order and award $37,212.50 in additional sanctions associated with Plaintiffs’ defense of the appeal of the previous order made and abandoned by Defendants.

In opposition, Defendants assert the Court need not make an additional order relating to the previous sanctions order as it is already enforceable and interest-collecting. Defendants argue that Plaintiff’s fees associated with the appeal should not be recovered because they were not incurred due to the abandoned arbitration proceeding and because they are excessive.

The Court need not make a second order regarding the first award of sanctions against Defendants. As stated in reply, the previous order is enforceable as a money judgement and Plaintiff may use judgment-enforcement measures to collect. The Court will allow Plaintiff to recover fees associated with the appeal of this award. These fees were incurred in due to the abandoned arbitration proceeding.

Plaintiff’s motion for sanctions is GRANTED in the amount of $37,212.50.