Acevedo v. Russell Cellular, Inc.

District Court, E.D. California·Decided June 9, 2022·No. 1:20-cv-01440·Unknown

Opinion

8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10

11 MARCO ACEVEDO, Case No. 1:20-cv-01440-JLT-SAB

12 Plaintiff, ORDER IMPOSING TOTAL SANCTION AMOUNT OF $1,400 ON PLAINTIFF’S 13 v. COUNSEL, DIRECTING CLERK OF COURT TO REPORT PLAINTIFF’S 14 RUSSELL CELLULAR, INC., COUNSEL TO STATE BAR OF CALIFORNIA, REQUIRING COUNSEL TO 15 Defendant. REPORT TO STATE BAR, AND DISCHARGING ANY FURTHER DAILY 16 SANCTIONS

17 (ECF Nos. 43, 46, 49)

18 THIRTY AND FORTY DAY DEADLINE

19 20 I. 21 BACKGROUND 22 Plaintiff Marco Acevedo initiated this action in state court on September 8, 2020. (ECF 23 No. 1-3.) On October 8, 2020, Defendant Russell Cellular, Inc. removed the action to this Court. 24 (ECF No. 1.) On May 19, 2021, the Court stayed this matter to allow the parties to participate in 25 arbitration. (ECF No. 15.) Since then, the parties, though primarily Plaintiff through counsel 26 Michael Freiman (“Counsel” or “Mr. Freiman”), have failed to demonstrate diligence in moving 27 this case forward through arbitration, and have failed to timely or appropriately submit status reports or otherwise respond to the Court’s orders. The Court has already imposed monetary 1 sanctions on Plaintiff, and subsequently, however, Plaintiff again failed to comply with the 2 Court’s orders. The Court shall now summarize the relevant history, however, the Court also 3 incorporates further discussions from previous orders by way of reference. (See ECF Nos. 20, 4 21, 23, 27, 30, 34, 35, 36, 38, 40, 43, 46.) 5 When the Court stayed this matter to allow the parties to participate in arbitration, the 6 parties were directed to file a status report within one hundred eighty (180) days of the date of 7 service of the May 19, 2021 order and every ninety (90) days thereafter to notify the Court as to 8 the status of arbitration. (Id. at 2.) Thus, the parties’ first status report was due November 15, 9 2021, however, no status report was filed. On November 18, 2021, the Court ordered the parties 10 to file a status report within five (5) days. (ECF No. 20.) On November 24, 2022, because the 11 parties failed to file a status report, the Court issued an order to show cause why sanctions should 12 not be imposed. (ECF No. 21.) On the same date, November 24, 2021, the parties submitted a 13 status report indicating that counsel for Defendant “had no indication from Plaintiff’s counsel 14 that Plaintiff intended to submit an arbitration demand,” and that following the November 18, 15 2021 order, the parties met and conferred regarding a status report, but were unable to confirm 16 until the morning of November 24, 2021, that Plaintiff did intend to submit an arbitration 17 demand and that counsel wishes to further meet and confer about selecting an arbitrator. (ECF 18 No. 22.) The parties submitted that the status of arbitration was “that the parties are, as of 19 November 24, 2021, in [the] process of attempting to jointly select an arbitrator, and counsel 20 intend to meet and confer in that regard after December 2, 2021, due to both counsel’s travel 21 schedules between now and then.” (Id) On November 29, 2021, the Court discharged the order 22 to show cause and ordered a further status report in ninety (90) days, but found “the parties have 23 not been diligent in determining if they will be entering arbitration or otherwise attempting to 24 resolve this action.” (ECF No. 23 at 2.) 25 On February 25, 2022, the parties filed a joint status report regarding the status of 26 arbitration. (ECF No. 26.) The status report indicated — again — that defense counsel 27 substituted into this action on July 8, 2021, after the order granting the motion to compel 1 November 24, 2021 (the date they filed their last status report) was that Plaintiff’s counsel did 2 not intend to submit an arbitration demand, and that Plaintiff’s counsel wished to confer about 3 selection of an arbitrator. On February 29, 2022, the Court ordered the parties to file a further 4 status report on or before March 11, 2022, indicating the status of arbitration and the parties’ 5 efforts to resolve the matter. (ECF No. 27.) The Court noted that “[a]pparently, the only 6 progress the parties had made in the last ninety days occurred on the day before the instant status 7 report deadline, in which Plaintiff’s counsel proposed two arbitrators for Defendant’s 8 consideration, which Defendant was not agreeable to.” (Id.) 9 The parties did not file a status report on March 11. Accordingly, on March 14, 2022, the 10 Court issued an order to show cause in writing why the parties should not be sanctioned for 11 failing to comply with the Court’s orders and timely submit a joint status report regarding the 12 status of the arbitration. (ECF No. 30.) The parties’ response to the order to show cause was due 13 by March 17, 2022. 14 After the Court’s order was signed but before it was docketed, on the same day, March 15 14, 2022, Defendant filed a unilateral status report. (ECF No. 29.) Pursuant to Defendant’s 16 status report, following the Court’s February 28, 2022 order to submit a further status report 17 (ECF No. 27), Defense counsel, Adam Khan, attempted to meet and confer with Plaintiff’s 18 Counsel by email on March 8, 2022, at 12:23 p.m., to follow up on the matter of the arbitrator 19 Defendant proposed on February 24, 2022, and to propose two additional arbitrators. (ECF No. 20 29 at 5–7.) Mr. Khan did not receive any response from Mr. Freiman. (Id. at 2.) Mr. Khan then 21 followed up with Mr. Freiman via email on March 9, 2022, at 10:55 a.m., and March 11, 2022, at 22 1:54 p.m., but did not receive any response. (Id. at 2, 4.) Defense counsel further proffered that 23 Defendant has received “very little cooperation from Plaintiff’s counsel in selecting an 24 arbitrator,” that Defendant should not be held responsible for unilaterally progressing this matter 25 to arbitration, and requested the Court select one of Defendant’s identified potential arbitrators or 26 alternatively, sanction Plaintiff for failure to prosecute this action. (Id. at 2.) 27 On March 15, 2022, Defendant filed a declaration in response to the Court’s March 14, 1 paralegal to file Defendant’s unilateral status report on March 11, 2022, but was informed at 2:35 2 p.m. and again at 4:32 p.m. that the Court’s filing system through PACER was not accepting 3 filings. (Id. at 2.) Accordingly, the status report, though due on March 11, 2022, was filed by 4 counsel’s office the next business day, Monday, March 14, 2022. (Id.) 5 On March 18, 2022, Plaintiff filed a declaration in response to the March 14 order to 6 show cause. (ECF No. 33.) In the response, Plaintiff objected to the arbitrators proposed by 7 Defendant. (Id. at 3.) Plaintiff maintained that, because the parties were unable to agree on an 8 arbitrator, the parties’ arbitration agreement requires the parties to attempt to use the arbitration 9 lists, or if that is not successful, then to follow the legal procedures for arbitrator selection. (Id.) 10 Accordingly, Plaintiff stated an intent to file the case in arbitration and obtain a provider list 11 from which the parties must select an arbitrator, in accordance with the parties’ arbitration 12 agreement (see Ex. B, ECF No. 33-2). (Id. at 2–3.) Plaintiff’s Counsel further averred that he 13 responded to defense counsel on March 11, 2022, and requested that Mr. Khan add the 14 information about the parties’ intent to obtain a provider list to select an arbitrator to the status 15 report. (Id. at 2; Ex. A, ECF No. 33-1.) 16 On March 22, 2022, the Court issued an order discharging the March 14, 2022 order to 17 show cause. (ECF No. 34.) The Court acknowledged that PACER was experiencing a system- 18 wide service disruption that prevented electronic filings on March 11, 2022, and therefore found 19 Defendant’s filing of the status report on the next business day was reasonable.

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