Judge: Theresa M. Traber, Case: 24STCV27273, Date: 2025-03-17 Tentative Ruling

Case Number: 24STCV27273    Hearing Date: March 17, 2025    Dept: 47

Tentative Ruling

Judge Theresa M. Traber, Department 47

HEARING DATE:     March 17, 2025                      TRIAL DATE: NOT SET

CASE:                         Lonnie Levine v. Stachs LLC d/b/a Eaze, et al.

CASE NO.:                 24STCV28273           

MOTION FOR ATTORNEYS FEES AND SANCTIONS

MOVING PARTY:               Plaintiff Lonnie Levine

RESPONDING PARTY(S): No response on eCourt as of March 12, 2025

STATEMENT OF MATERIAL FACTS AND/OR PROCEEDINGS:

            This is a wage and hour and wrongful termination action that was filed on October 29, 2024. Plaintiff alleges that he was systematically underpaid and was terminated in retaliation for complaining about the wage and hour violations.

Plaintiff moves for attorney’s fees and sanctions pursuant to Code of Civil Procedure section 1281.98.

TENTATIVE RULING:

Plaintiff moves for attorney’s fees and sanctions pursuant to Code of Civil Procedure section 1281.98 for Defendant’s failure to pay arbitration fees.

Code of Civil Procedure section 1281.98 provides:

(1) In an employment or consumer arbitration that requires, either expressly or through application of state or federal law or the rules of the arbitration provider, that the drafting party pay certain fees and costs during the pendency of an arbitration proceeding, if the fees or costs required to continue the arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel the employee or consumer to proceed with that arbitration as a result of the material breach.

(2) The arbitration provider shall provide an invoice for any fees and costs required for the arbitration proceeding to continue to all of the parties to the arbitration. The invoice shall be provided in its entirety, shall state the full amount owed and the date that payment is due, and shall be sent to all parties by the same means on the same day. To avoid delay, absent an express provision in the arbitration agreement stating the number of days in which the parties to the arbitration must pay any required fees or costs, the arbitration provider shall issue all invoices to the parties as due upon receipt. Any extension of time for the due date shall be agreed upon by all parties. Once the invoice has been paid, the arbitration provider shall provide to all parties a document that reflects the date on which the invoice was paid.

(Code Civ. Proc. § 1281.98(a).) If the drafting party (i.e., the employer who included the arbitration clause in the employment contract) is in default under subdivision (a), the employee may withdraw the claim from arbitration and proceed in a court of appropriate jurisdiction. (Code Civ. Proc. §§ 1280(e), 1281.98(b)(1).)

Where the employee elects to withdraw from arbitration and proceed in court, the employee “may bring a motion, or a separate action, to recover all attorney’s fees and all costs associated with the abandoned arbitration proceeding.” (Code Civ. Proc. § 1281.98(c)(1) [emphasis added].) The Court shall impose, as a monetary sanction, an award of reasonable attorney’s fees and costs incurred by a drafting party who materially breaches the agreement as defined by section 1281.98 subdivision (a). (Code Civ. Proc. § 1281.99(a).) The Court may also impose evidentiary, terminating, or contempt sanctions. (Code Civ. Proc. § 1281.98(b).)

Here, Plaintiff has brought a motion seeking attorney’s fees and costs associated with an abandoned arbitration of Plaintiff’s employment claims. In support of that motion, Plaintiff has demonstrated that she filed a demand for arbitration pursuant to the Arbitration Agreement presented to her by Defendant and that Defendant was billed for arbitration fees it was obligated to pay but failed to do so, thus materially breaching the Arbitration Agreement. (Hoang Decl., ¶¶ 3, 5-8, Exh. 1-4.)  Plaintiff’s counsel offers evidence of his qualifications and hourly rate and detailed records of the work he performed and costs expended during the arbitration, amounting to a total of $92,127.50 in attorney’s fees and $14,570.98 in costs.  (Id., ¶¶ 9-17, Exh. 5-6.)  Defendant has failed to mount any opposition to this motion. The Court finds Plaintiff’s fees and costs are reasonable and that she is entitled to receive a total award of $106,708.48. 

Accordingly, Plaintiff’s Motion for Attorney’s Fees and Sanctions is GRANTED in its entirety.

Moving Party to give notice.

//

//

IT IS SO ORDERED.

Dated:  March 17, 2025                                  ___________________________________

                                                                                    Theresa M. Traber

                                                                                    Judge of the Superior Court

            Any party may submit on the tentative ruling by contacting the courtroom via email at Smcdept47@lacourt.org by no later than 4:00 p.m. the day before the hearing. All interested parties must be copied on the email. It should be noted that if you submit on a tentative ruling the court will still conduct a hearing if any party appears. By submitting on the tentative you have, in essence, waived your right to be present at the hearing, and you should be aware that the court may not adopt the tentative, and may issue an order which modifies the tentative ruling in whole or in part.