Bowers v. Raymond J. Lucia Companies

206 Cal. App. 4th 724, 142 Cal. Rptr. 3d 64, 2012 WL 1939722, 2012 Cal. App. LEXIS 635
CourtCalifornia Court of Appeal
DecidedMay 30, 2012
DocketNo. D059333
StatusPublished
Cited by26 cases

This text of 206 Cal. App. 4th 724 (Bowers v. Raymond J. Lucia Companies) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowers v. Raymond J. Lucia Companies, 206 Cal. App. 4th 724, 142 Cal. Rptr. 3d 64, 2012 WL 1939722, 2012 Cal. App. LEXIS 635 (Cal. Ct. App. 2012).

Opinion

[728]*728Opinion

McCONNEL, P.J.

INTRODUCTION

Raymond J. Lucia Companies, Inc. (defendant), appeals from a judgment enforcing a settlement agreement resulting in a binding mediation award in favor of Ryan N. Bowers, Marc Seward, and Jeffrey LaBerge (plaintiffs). Defendant contends we must reverse the judgment as the underlying settlement agreement is unenforceable because (1) defendant never agreed to resolve the parties’ dispute through binding mediation; (2) a contract term providing for binding mediation is necessarily too uncertain to be enforceable; and (3) binding mediation is not among the constitutionally and statutorily permissible means of waiving jury trial rights. We conclude there is substantial evidence to support the trial court’s determination defendant agreed to the binding mediation procedure utilized in this case. We further conclude that the binding mediation provisions in the parties’ settlement agreement were not too uncertain to be enforceable. Finally, we conclude binding mediation is not a constitutionally or statutorily prohibited means of waiving jury trial rights where, as here, the parties have agreed to settle their dispute in a nonjudicial forum. We, therefore, affirm the judgment.

BACKGROUND

Plaintiffs sued Raymond J. Lucia, Sr. (Lucia), defendant, and other entities for defamation and related business torts. Lucia filed an arbitration proceeding against plaintiffs asserting similar claims.1

The trial court subsequently determined plaintiffs were compelled to arbitrate their claims against Lucia. Plaintiffs dismissed Lucia from their lawsuit, allowing their arbitration with him to proceed separately from their lawsuit against defendant. The arbitration proceeding commenced a few months before the scheduled trial in this case. After several days of arbitration, the parties agreed to settle their dispute before the arbitration panel reached a decision. In informing the arbitration panel of the settlement, the following exchanges occurred:

“[DEFENDANT’S COUNSEL]: Through the efforts of the parties today and also the panel being patient, we’ve been able to resolve this arbitration to the parties’ satisfaction. As a consequence, [Lucia] is dismissing all claims [729]*729against the [plaintiffs], with prejudice. And, as a result, we are also encompassing the state court matter, which is set for trial in October, and we are agreeing to bring that case to binding mediation with a component which, if it’s not resolved at mediation, rolls over to arbitration. I guess it’s—it’s mediation with a binding arbitration component following.

“[CHAIRMAN]: Med/Arb.
“[PLAINTIFFS’ COUNSEL]: The mediator has the ability to decide the case at the end of the day.
“[DEFENDANT’S COUNSEL]: Correct.
“[PLAINTIFFS’ COUNSEL]:—if the parties don’t resolve it.
“[DEFENDANT’S COUNSEL]: So we’re resolving this matter here with respect to each other. We are taking the state court case and taking the parties in that matter, agreeing to go mediate with a jointly—a mutually-acceptable mediator. And to the extent we don’t resolve it that day, it becomes a mediation]—an arbitration with a range of between $100,000 and $5 million as the range that he will then have the freedom to choose after we present our cases to him or her during mediation.
“[CHAIRMAN]: Understood.”
Following a brief discussion about ancillary matters, the chairman summarized, “So your agreement encompasses dismissal with and of the arbitration and the Superior Court case based upon the terms that you’ve agreed to, to mediate in a Med/Arb, baseball high-low atmosphere with a mediator of your choosing, to be chosen within the next several weeks.”
After a brief discussion about allocating forum fees, the chairman asked, “Anything else you want to put on the record . . . [?]” Defendant’s counsel responded, “I think that encompasses the essential terms of our agreement.” Plaintiffs’ counsel agreed, stating, “I believe that’s correct. Yes.”

Within a week after the arbitration, the parties signed a “Settlement Agreement and Release” (settlement agreement). Paragraph II.2 of the settlement agreement provided this case “shall be placed on the Superior Court dismissal calendar. The Parties shall then proceed to a mediation/binding baseball arbitration with a mutually agreed-upon neutral within sixty days of the execution of this agreement. To wit, the Parties shall participate in a full day mediation. If, at the end of that mediation, the Parties have failed to reach an agreement, the mediator shall be empowered to set the amount of the [730]*730judgment in favor of Plaintiffs against Raymond J. Lucia Companies, Inc. at some amount between $100,000 and $5,000,000, such binding mediator judgment to then be entered as a legally enforceable judgment in San Diego Superior Court without objection of any Party.”

Paragraph II.3 of the settlement agreement provided, “Immediately upon execution of this agreement, the Parties shall advise the Court to place the case on the dismissal track. Should the Parties agree upon a voluntary compromise of the San Diego Superior Court case, the case shall be dismissed with prejudice. Should the matter proceed to binding baseball arbitration, the Parties shall enter the arbitrated amount as an enforceable stipulated judgment in the case.”

At the mediator’s request, the parties later modified the portion of paragraph II.2 of the settlement agreement beginning with “To wit” to provide, “To wit, the Parties shall participate in a full day mediation. If, at the end of that mediation, the Parties have failed to reach an agreement, the Plaintiffs (Bowers, Seward, and LaBerge) shall provide to the mediator their last and final demand, which demand shall be some amount between $100,000 and $5,000,000, and the Defendants (Companies, Wealth Management, and Enterprises) shall provide to the mediator their last and final offer which offer shall be some amount between $100,000 and $5,000,000. The mediator shall then be empowered to set the amount of the judgment in favor of Plaintiffs against Raymond J. Lucia Companies, Inc. by choosing either Plaintiffs’ demand or Defendants’ offer, such binding mediator judgment to then be entered as a legally enforceable judgment in San Diego Superior Court without objection of any Party.” The amendment further provided, “This amendment shall not impact any section of the Settlement Agreement not referenced above.”

The parties participated in a full-day mediation with the mediator. At the end of the day, the parties had not reached an agreement. The mediator asked plaintiffs for their final demand and defendant for its final offer. Plaintiffs demanded $5 million and defendant offered $100,000. The mediator did not reach an immediate decision, but allowed the parties to continue to submit information for his consideration. He also met with defendant and defendant’s counsel. The mediator ultimately selected the $5 million number.

Defendant obtained new counsel, who wrote the mediator a letter requesting that the mediator either reopen the proceeding to allow for further information exchanges and interaction, or reconsider his decision.

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Cite This Page — Counsel Stack

Bluebook (online)
206 Cal. App. 4th 724, 142 Cal. Rptr. 3d 64, 2012 WL 1939722, 2012 Cal. App. LEXIS 635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowers-v-raymond-j-lucia-companies-calctapp-2012.