Armin Azod v. James G. Robinson

CourtDistrict Court, C.D. California
DecidedJanuary 30, 2023
Docket2:22-cv-05214
StatusUnknown

This text of Armin Azod v. James G. Robinson (Armin Azod v. James G. Robinson) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Armin Azod v. James G. Robinson, (C.D. Cal. 2023).

Opinion

Case 2:22-cv-05214-CAS-MRW Document 87 Filed 01/30/23 Pagelof19 Page ID #:3372 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:22-CV-05214-CAS (MRW) Date January 30, 2023 Title ARMIN AZOD, ET AL. V. JAMES G. ROBINSON, ET AL.

Present: The Honorable CHRISTINA A. SNYDER Catherine Jeang Laura Elias N/A Deputy Clerk Court Reporter / Recorder Tape No. Attorneys Present for Plaintiffs: Attorneys Present for Defendants: Armin Azod Aaron Allan Amanda Fleming Fred Heather Proceedings: MOTION TO ALTER OR AMEND FINAL JUDGMENT PURSUANT TO RULE 59(E) (Dkt. 67, filed on DECEMBER 12, 2022) I. INTRODUCTION On July 27, 2022, petitioners Armin Azod, Ramez Elgammal, Shantanu Sharma, Dong Zhang, and Peter John (the “Azod parties”) filed a motion to confirm an arbitration final award against respondents James G. Robinson, Morgan Creek Productions, Inc. (“Morgan Creek”), Cecilia, LLC (“Cecilia”), and Good Stuff, LLC (“Good Stuff’), (collectively, the “Robinson parties’). Dkt. 1. Robinson is the sole owner of Morgan Creek, Cecilia, and Good Stuff. Id. at 5-6. On August 29, 2022, respondents filed a motion to dismiss the petitioners’ motion to confirm the arbitration final award, pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(3). Dkt. 35. On November 9, 2022, following hearings on both motions, the Court denied respondents’ motion to dismiss and granted petitioners’ motion to confirm the arbitration final award. Dkts. 55, 56. Final judgment was entered on November 15, 2022, confirming the arbitration final award in all respects. Dkt. 57. On December 12, 2022, respondents filed a motion to alter or amend the judgment, pursuant to Federal Rule of Civil Procedure 59(e), urging the Court to reconsider both respondents’ motion to dismiss and petitioners’ motion to confirm. Dkt. 67. On January 9, 2023, petitioners filed an opposition to respondents’ Rule 59(e) motion. Dkt. 76. On January 17, 2023, respondents filed a reply in support of their motion. Dkt. 80. Respondents’ Rule 59(e) motion is presently before the Court.

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Case 2:22-cv-05214-CAS-MRW Document 87 Filed 01/30/23 Page2of19 Page ID #:3373 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:22-CV-05214-CAS (MRW) Date January 30, 2023 Title ARMIN AZOD, ET AL. V. JAMES G. ROBINSON, ET AL.

On January 30, 2023, the Court held a hearing on respondents’ motion. Having carefully considered the parties’ arguments and submissions, the Court finds and concludes as follows. II. BACKGROUND A. The 2016 Case The dispute between the parties arises out of an Asset Purchase Agreement (the “APA”), which respondent Cecilia entered into with the Azod parties on October 15, 2014. Dkt. 1 at 2. Pursuant to the APA, Cecilia purchased Novoform, a limited liability company, and certain of its assets, from the Azod parties. Id. Cecilia failed to pay the Azod parties over $850,000 due under the APA. Id. On January 20, 2016, the Azod parties filed suit against Respondents Cecilia, Robinson, and Morgan Creek in the Central District of California (the “2016 case”), seeking relief in the form of all payments due under the APA and attorneys’ fees and costs. Id. at 2-3. On April 7, 2016, respondents filed a motion to compel arbitration and to dismiss for improper venue, arguing that the APA contained a clause that required arbitration of the dispute. Id. at 3. On May 10, 2016, the Honorable Judge John F. Walter granted respondents’ motion and ordered the parties to arbitrate. Id. B. First JAMS Arbitration Phase The parties proceeded to arbitrate the dispute before a JAMS arbitrator, the Honorable Judge Benson Everett Legg. Id. On September 16, 2016, petitioners submitted a demand for arbitration, asserting claims for breach of contract and fraud against respondents. Dkt. 1-2 at 2-3. Robinson, Cecilia, and Good Stuff counterclaimed against petitioners for rescission based on fraud, rescission based on breach of contract, breach of contract, breach of implied covenant of good faith and fair dealing, fraud, and breach of fiduciary duty. Id. at 3. The parties engaged in discovery and motion practice from January 2017 to July 2018. Id. at 3-4. On September 29, 2018, the arbitrator dismissed petitioners’ fraud claims. Id. at 4. On November 6, 2018, a five-day merits hearing commenced that addressed seven questions pertaining to respondents’ counterclaims. Id. On February 7, 2019, the arbitrator issued the Partial Final Award (“PFA”), awarding judgment in the amount of $856,886, in favor of petitioners and against Cecilia. Id. The PFA additionally imposed the costs of arbitration against Cecilia. Id.

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Case 2:22-cv-05214-CAS-MRW Document 87 Filed 01/30/23 Page3of19 Page ID #:3374 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ Case No. 2:22-CV-05214-CAS (MRW) Date January 30, 2023 Title ARMIN AZOD, ET AL. V. JAMES G. ROBINSON, ET AL.

On March 1, 2019, the arbitrator scheduled a hearing to address remaining issues, including attorneys’ fees and costs, prejudgment and post-judgment interest, and whether the non-Cecilia respondents could be liable for breach of contract damages. Id. at 4-5. Respondents argued that the arbitrator lacked jurisdiction to make any award against the non-Cecilia respondents, and this dispute was briefed and heard by the arbitrator. Id. at 5. On September 17, 2019, the arbitrator issued a scheduling order stating that the PFA was not final with respect to the potential liability of the non-Cecilia respondents. Id. C. The 2019 Case On November 6, 2019, the Robinson parties filed a petition to confirm the PFA issued by Judge Legg in the Central District of California. The case was randomly assigned to the Honorable Judge Otis D. Wright (the “2019 case”). Dkt. 1 at 4. On January 17, 2020, the Azod parties filed a motion to stay the proceeding before Judge Wright until completion of the arbitration. Id. at 5. On May 21, 2020, Judge Wright granted the Azod parties’ motion and ordered the parties to file joint status reports pending completion of the arbitration. Id. Over the following two years, the parties filed nine status reports. Id. D. Second JAMS Arbitration Phase While proceedings in the 2019 case were stayed, arbitration of the liability of respondents Robinson, Morgan Creek, and Good Stuff continued. Id. In this phase, the parties litigated whether the non-Cecilia respondents could be held liable for breach of contract under a theory of equitable estoppel, whether they were entitled to attorneys’ fees and costs under Section 21 of the APA, and whether they were liable to petitioners for attorneys’ fees and costs. Dkt. 1-2 at 5-7. On May 15, 2020, following extensive litigation of these issues, the arbitrator issued an Interim Award, which reiterated that petitioners were the prevailing party and found that Robinson and Morgan Creek were liable for attorneys’ fees and costs under the theory of equitable estoppel, even though they were not signatories to the APA, because they attempted to enforce the APA to their benefit. Id. at 7. The arbitrator found that the doctrine of equitable estoppel could bind Robinson and Morgan Creek to the APA for all purposes but declined to exercise his equitable discretion to hold them liable for breach of contract damages, reasoning that a greater degree of intentionality was required to hold them liable for breach of contract

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Armin Azod v. James G. Robinson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/armin-azod-v-james-g-robinson-cacd-2023.