Ari Law v. Autonation.com

California Court of Appeal·Decided August 26, 2026·No. A173620·Published

Opinion

Filed 8/26/26 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION FOUR

ARI LAW P.C., Plaintiff and Appellant, A173620 v. (San Mateo County AUTONATION.COM, INC., et al, Super. Ct. No. 23CIV03497)

Defendants and Respondents.

Ari Law P.C. appeals a sanctions order under Code of Civil Procedure sections 128.5 and 128.7.1 Under the safe harbor provisions in sections 128.5 and 128.7, the party moving for sanctions must first serve a copy of the notice and motion on the opposing party, which commences the safe harbor period. If the opposing party does not take corrective actions during this time, the moving party may then file the motion seeking sanctions. (§§ 128.5, subd. (f)(1)(B), 128.7, subd. (c)(1).)

Ari Law argues the trial court’s sanctions order must be reversed because the notice of motion was not in compliance with the statutory requirements of sections 128.5 and 128.7 where the served notice of motion included a different hearing date than the notice of motion filed with the court and did not allow sufficient time to observe the safe harbor period and comply with statutorily mandated notice provisions.

Further statutory references are to the Code of Civil Procedure, unless 1

otherwise stated.

We hold that the fact that the hearing was rescheduled for a later date, as reflected in the notice of motion that was filed with the trial court does not require reversing the court’s order where the motion served and subsequently filed were substantively the same and otherwise strictly satisfied the safe harbor provisions. We affirm.

BACKGROUND2

In May 2024, Ari Law filed its Second Amended Complaint alleging six causes of action: (1) breach of contract, (2) breach of express warranty, (3) breach of implied warranty, (4) unfair business practices, (5) fraud, and (6) violations of the Rosenthal Fair Debt Collection Practices Act against defendant and respondent BMW Financial Services NA, LLC (BMW FS), among various other defendants. This dispute arises out of a vehicle lease agreement. BMW FS filed a demurrer to the complaint which the court sustained as to counts 2, 3, and 6 without leave to amend.

In September 2024, Ari Law filed its Third Amended Complaint (TAC), which included all six causes of action alleged in the Second Amended Complaint. Between September and December 2024, counsel for BMW FS repeatedly attempted to get Ari Law to withdraw counts 2, 3, and 6, which should not have been refiled based on the court’s demurrer ruling. Ari Law refused. In November 2024, BMW FS filed a demurrer to the TAC. Subsequently, On December 17, 2024, BMW FS served Ari Law with a notice of motion and motion for sanctions pursuant to sections 128.5 and 128.7. The notice of motion provided a hearing date of January 17, 2025. The sanctions motion alleged, among other things, that Ari Law re-alleged

2 We limit the recitation of facts to those relevant to this appeal.

claims that were dismissed without leave to amend and refused to withdraw them.3 On January 15, 2025, BMW FS filed and again served the notice of motion and motion for sanctions. The January 15 notice of motion provided a hearing date of March 18, 2025.

On February 4, 2025, the trial court adopted its tentative ruling on the demurrer to the TAC which sustained the demurrer as to the causes of action that had been previously alleged and sustained without leave to amend.

On March 5, 2025, Ari Law filed an opposition to BMW FS’s motion for sanctions. Ari Law argued that the court lacked jurisdiction because the “notices of motion did not provide the date when the motion would be filed” rendering notice defective and failing to comply with the safe harbor provision. Ari Law also argued the merits of the sanctions motion.

A hearing on the sanctions motion was held on March 18, 2025. At the hearing, Ari Law raised the notice issue with the trial court, but the court dismissed this argument as “going nowhere” and stated that “notice was good. You were on notice.” Ari law proceeded to argue the merits of the motion. On April 10, 2025, the trial court entered a written order imposing monetary sanctions against Ari Law and its counsel in the amount of $29,055.4 On April 23, 2025, Ari Law filed a motion for reconsideration of the sanctions motion. On June 5, 2025, Ari Law filed the instant appeal. On June 17, 2025, the trial court denied the motion for reconsideration.

3 The court did not dismiss counts 2, 3, and 6. Rather, it sustained a

demurrer as to those counts without leave to amend.

4 Ari Law does not challenge the merits of the court’s order imposing

monetary sanctions.

In its order denying the motion for reconsideration, the trial court noted that in San Mateo County, a hearing date is not assigned until the motion is filed such that providing an accurate hearing date in the initially served notice on December 17, 2024, was infeasible.

DISCUSSION

I. Sanctions Motion Under Sections 128.5 and 128.7 “ ‘Section 128.5 authorizes sanctions for certain bad faith actions or tactics.’ [Citation.] Specifically, under section 128.5, a trial court may award ‘reasonable expenses, including attorney’s fees, incurred by another party as a result of actions or tactics, made in bad faith, that are frivolous or solely intended to cause unnecessary delay.’ (§ 128.5, subd. (a).)” (Zarate v. McDaniel (2023) 97 Cal.App.5th 484, 488–489.) “Relevant here, section 128.5, subdivision (f)(1)(B) is a safe harbor provision, which provides that where the challenged action . . . ‘can be withdrawn or appropriately corrected,’ a motion for sanctions cannot be filed with the court unless the challenged action has not been withdrawn or corrected ‘21 days after service of the [sanctions] motion or [within] any other period as the court may prescribe.’ ” (Id. at p. 489.)

Likewise, “[u]nder Code of Civil Procedure section 128.7, a court may impose sanctions for filing a pleading if the court concludes the pleading was filed for an improper purpose or was indisputably without merit, either legally or factually.” (Peake v. Underwood (2014) 227 Cal.App.4th 428, 339– 440.) The safe harbor provision in section 128.5 mirrors the safe harbor provision in section 128.7 and is therefore interpreted the same way. (CPF Vaseo Associates, LLC v. Gray (2018) 29 Cal.App.5th 997, 1001–1005.) Because the

case law under section 128.7 is more developed, we focus our analysis on that section.

Here, Ari Law alleges the trial court erred in awarding sanctions because the sanctions motion did not comply with the procedural requirements of the safe harbor provisions of section 128.5 and 128.7. Specifically, Ari Law argues that the sanctions motion and notice of motion served by BMW FS was not the same as those filed with the court because the date of hearing provided on the originally served notice of motion differed from the date on the filed notice of motion. Similarly, Ari Law argues that the hearing date provided in the served notice of motion did not provide sufficient time to satisfy the 21 day safe harbor period and section 1005, which requires moving papers to be filed at least 16 court days before the hearing. We disagree.

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