Judge: Virginia Keeny, Case: 24STCP02189, Date: 2025-02-26 Tentative Ruling
Case Number: 24STCP02189 Hearing Date: February 26, 2025 Dept: 45
DECAROLIS FAMILY LAW GROUP, APC V.
SONJA BECKER-GOOCH
PETITION TO CONFIRM ATTORNEY-CLIENT FEE ARBITRATION
AWARD
Date of Hearing: February 26, 2025 Trial Date: None set.
Department: 45 Case
No.: 24STCP02189
Moving
Party: Petitioner DeCarolis
Family Law Group, APC
Responding
Party: None
BACKGROUND
On July 10, 2024, Petitioner DeCarolis Family Law Group, APC
(“Petitioner”) filed the instant Petition to Confirm Attorney-Client Fee
Arbitration Award (the “Petition”). According to the Petition, an arbitration
occurred on April 12, 2024, via Zoom videoconference before Arbitrators Diane
Dykema, Esq.; Vivien Cienfuegos Ide, Esq.; and Ann Garry. (Petition, ¶¶ 4-5.)
An arbitration award was made on June 25, 2024, which requires Respondent Sonja
Becker-Gooch (“Respondent”) to pay Petitioner the amount of $300,000, less
$2,500 for their share of the fee arbitration filing fee (a total of $297,500),
plus interest at the rate of ten percent per annum as of the date of the award.
(Petition, ¶ 6(a)-(b).)
A copy of the arbitration award is attached as Attachment
6(c) to the Petition. Petitioner requests that the Court confirm the
arbitration award and enter judgment according thereto. (Petition, ¶ 10(a).) Petitioner
also requests interest at the rate of ten percent from June 25, 2024, and costs
in the amount of $435.00. (Petition, ¶ 10(d)-(f).) The Petition was “filed
after an attorney-client fee arbitration conducted under Business and
Professions Code sections 6200-6206.” (Petition, ¶ 2.)
On July 29, 2024, Petitioner filed and served a Notice of
Hearing on the Petition, which set forth a hearing date of August 27, 2024 on
the Petition, as well as copy of the Petition. (See 07/29/24 Notice of
Hearing.)
On August 26, 2024, pursuant to a request made by
Petitioner, the hearing on the Petition was rescheduled from August 27, 2024,
to February 26, 2025. (See Register of Actions.)
On December 27, 2024, this action was reassigned from the
Honorable Mel Red Recana to the Honorable Virginia Keeny sitting in Department
45 at Stanley Mosk Courthouse effective January 3, 2025. Petitioner was ordered
to give notice.
On January 14, 2025, via electronic service, Petitioner
served Respondent with the Petition, Civil Case Cover Sheet, Notice of Hearing
on the Petition, and Notice of Case Reassignment. (See 01/24/25 Proof of
Service.)
Initially, the Court notes that there is no indication that
Petitioner provided Respondent with notice of the February 26, 2025 hearing
date. Based on a review of the January 14, 2025 proof of service, Petitioner appears
to have electronically served Respondent with a notice of hearing setting forth
the now moot August 27, 2024 hearing date. Petitioner did not file a notice of
continuance as to the Petition and the Court assumes that Respondent was not
properly notified of the February 26, 2025 hearing date.
[Tentative] Ruling
The Court CONTINUES the hearing on the Petition to Thursday,
April 3, 2025, at 8:30 AM in this department so that Petitioner can provide
proper notice of the hearing to Respondent.
LEGAL
STANDARD
“The MFAA was enacted in 1978 to address the concern
that fee disputes constituted the most serious problem between attorneys and
their clients.” (Giorgianni v. Crowley (2011) 197 Cal.App.4th 1462,
1472.) “[T]he MFAA was enacted to require, at the option of the client, that
the attorney arbitrate any fee dispute.” (Ibid.) “[T]he MFAA . . .
requires that the attorney give the client written notice of its right to
arbitration at or before the time the attorney brings suit or other proceeding
to collect on unpaid fees or costs.” (Ibid.) “If the attorney fails to
comply with this notice requirement and initiates an action or proceeding for
fees, the client may elect to stay the action by requesting arbitration before
answering.” (Ibid.) “It is presumed under the MFAA that the arbitration
award will be nonbinding.” (Ibid.) “The arbitration award will be
binding . . . only if the attorney and client so agree in writing after the
dispute has arisen. Otherwise, either party may request a trial de novo within
30 days after the arbitration has concluded” (Ibid.) “Either the
attorney or client may have a trial de novo of the dispute if the dissatisfied
party, within 30 days after service of the arbitration award, files a rejection
and request for trial in the pending action . . . or, if no action is pending,
files a rejection and trial request by initiating an action” (Id. at p.
1473.) “Absent the filing of a timely rejection and request for trial, the
arbitration award becomes final.” (Ibid.)
“The award shall be in writing and signed by the
arbitrators concurring therein . . . [and] shall include a determination of all
the questions submitted to the arbitrators, the decision of which is necessary
in order to determine the controversy.” (Bus. & Prof. Code § 6203(a).) “The
award shall not include any award to either party for costs or attorney’s fees
incurred in preparation for or in the course of the fee arbitration proceeding,
notwithstanding any contract between the parties providing for such an award or
costs or attorney’s fees.” (Ibid.) “[A] court confirming, correcting, or
vacating an award . . . may award to the prevailing party reasonable fees and
costs incurred in obtaining confirmation, correction, or vacation of the
award.” (Bus. & Prof. Code § 6203(c).) “If an action has been previously
filed in any court, any petition to confirm, correct, or vacate the award shall
be to the court in which the action is pending” and, where a party has not
appeared, “shall [be served] in the same manner as provided in Chapter 4
(commencing with Section 1003) of Title 9 of Part 3 of the Code of Civil
Procedure.” (Bus. & Prof. Code § 6203(b).)
ANALYSIS
Procedural
Violations
Here,
Petitioner does not appear to have provided Respondent with notice of the
February 26, 2025 hearing date on the Petition. “[D]ue process requires a party
to be fully advised of the issues to be addressed.” (Fenn v. Sherriff (2003)
109 Cal.App.4th 1466, 1481.) Respondent should have been provided with notice
of the February 26, 2025 hearing date on the Petition.
Analysis
of the Petition
The
instant action was commenced on July 10, 2024, with the filing of the Petition.
The arbitration award was served by mail on the parties on June 25, 2024
(Petition, Attachment 6(c)), and Respondent did not file a rejection of the
arbitration award within 30 days of service of such award. Respondent has not
filed a rejection or filed a request for trial in the instant action. Thus, the
arbitration award is final under Giorgianni v. Crowley, supra,
197 Cal.App.4th 1462, 1473.
Here,
the arbitration award is in writing, sets forth the names of the arbitrators,
makes a determination of the questions submitted to the arbitrators, and is
signed by the arbitrators. (Petition, Attachment 6(c) at p. 3.) The arbitration
award also does not include any fees or costs incurred in connection with the
arbitration. (Petition, Attachment 6(c) at pp. 3-4.) The arbitration award
states that “Client [Sonja Becker-Gooch] shall pay Attorney [Patrick DeCarolis,
Jr.] $300,000.00 plus interest in the amount of 10% per nnum (sic) from the
30th day after the date of service of this Award.” (Petition, Attachment 6(c)
at p. 4.) Attorney Patrick DeCarolis, Jr. was ordered to “pay Client [Sonja
Becker-Gooch] $2,500.00 plus interest in the amount of 10% per annum from the
30th day after the date of service of [the] Award.” (Petition, Attachment 6(c)
at p. 4.) Respondent was served with the award on June 25, 2024. (Petition,
Attachment 6(c) at Proof of Service.)
The
Court, however, cannot grant the Petition due to the lack of notice to
Respondent of the instant hearing date.
CONCLUSION
Based on the foregoing, the Court CONTINUES the hearing on
the Petition to Thursday, April 3, 2025, at 8:30 AM in this department so that
Petitioner can provide proper notice of the hearing to Respondent.