Currency Corp. v. Wertheim CA2/1

CourtCalifornia Court of Appeal
DecidedDecember 1, 2021
DocketB276506A
StatusUnpublished

This text of Currency Corp. v. Wertheim CA2/1 (Currency Corp. v. Wertheim CA2/1) 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
Currency Corp. v. Wertheim CA2/1, (Cal. Ct. App. 2021).

Opinion

Filed 12/1/21 Currency Corp. v. Wertheim CA2/1 Opinion following rehearing NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

CURRENCY CORP., et al., B276506

Plaintiffs and Respondents, (Los Angeles County Super. Ct. No. BC417798) v.

WERTHEIM, LLC,

Defendant and Appellant.

APPEAL from an order of the Superior Court of Los Angeles County, David Sotelo, Judge. Affirmed. The Rubin Law Firm, Brett M. Rubin; Law Offices of F. Jay Rahimi, F. Jay Rahimi for Defendant and Appellant. Huarte Appeals, Anne M. Huarte for Plaintiffs and Respondents. ___________________________________ In 2006, Currency Corporation loaned $6,500 to Maibell Page, the transaction memorialized by a promissory note that contained an attorney fees provision. A dispute arose, and Page assigned her rights against Currency Corporation to Wertheim LLC. Wertheim then initiated legal proceedings against Currency Corporation spanning 15 years. Those proceedings branched into an arbitration portion—which has itself spun off three lawsuits and resulted in four appeals (including this one)— and a separate lawsuit. The arbitration portion of the dispute is now over. In it, Wertheim achieved nothing. Currency Corporation and its affiliates sought attorney fees incurred in the arbitration portion of the dispute, which the trial court granted in the amount of $1.2 million. Wertheim contends the court abused its discretion in awarding fees to Currency Corporation and its affiliates. We disagree, and therefore affirm. BACKGROUND A. Loans Parviz Omidvar and his relatives, Oliver and O’Neil Omidvar, and their company, Tiffany Ventures, LLC (the Omidvar parties), along with Currency Corporation (we will refer to the Omidvar parties and Currency Corporation collectively as “Currency”), loaned money at high interest rates to elderly artists who owned royalty rights. In exchange, the artists would assign their royalties to Currency. Currency made some 80 loans to Maibell Page, the widow of Eugene Page, a successful songwriter. Maibell assigned to Currency the royalty rights she derived from Eugene.

2 1. The June 2006 Note On June 2, 2006, Currency made the loan that is the subject of this and three related actions. As evidenced by a promissory note (the June 2006 note), Currency loaned Maibell Page $6,500 for six months at an interest rate of two percent compounded every 10 days, with an administrative fee of 10 percent. The June 2006 note contained an arbitration clause and three attorney fees provisions. The first fee provision stated: “[I]n connection with any claim or dispute arising out of or relating to this Note, including any litigation, arbitration or other proceeding alleging a breach of the terms of this Note, the prevailing party shall recover . . . reasonable attorneys’ fees and costs incurred by such party prosecuting or defending such claim or dispute.” The second provision stated: “The losing party shall reimburse the prevailing party for its reasonable outside attorneys’ fees and costs incurred with respect to [any] Arbitration proceeding.” The third attorney provision stated: “Borrower shall reimburse [Currency Corp.] for . . . reasonable attorneys’ fees, expended or incurred by [it] in any arbitration or otherwise in connection with (a) . . . enforcement of the Loan Documents, including . . . rendering of legal advice as to the Holder’s rights, remedies and obligations under the Loan Documents, (b) collecting any sum which becomes due to the Holder under any Loan Document, (c) any proceeding for declaratory relief, any counterclaim to any proceeding or any appeal, or (d) the protection, preservation or enforcement of any right or remedies of the Holder.”

3 2. Second Assignment In 2006, Page assigned to David Pullman, as principal of Wertheim, LLC, the royalty rights she had already assigned to Currency, as well as any causes of action she might have against Currency. Pullman/Wertheim and Currency then entered into a legal dispute over Page’s royalty stream, each contending the other made a widespread practice of swindling the gullible elderly. (E.g., Currency Corp. v. Wertheim (May 20, 2011, B222851) [nonpub. opn.] (Currency I).) The dispute took two tracks—an arbitration track and a lawsuit track. (The arbitration track itself spun off three lawsuits.) This appeal concerns only the arbitration track. B. Arbitration Track On June 8, 2009, Wertheim filed a form demand for arbitration with the American Arbitration Association, alleging causes of action against Currency for fraud, breach of contract, and elder abuse. Wertheim contended that each of the scores of transactions between Maibell Page and Currency was subject to the arbitration clause found in the June 2006 note. It demanded $5 million. 1. Instant Lawsuit to Enjoin Arbitration: LASC Case No. BC417798 A month later, on July 14, 2009, Currency filed the instant lawsuit, Los Angeles Superior Court (LASC) case No. BC417798, against Page and Wertheim for declaratory and injunctive relief, seeking to enjoin arbitration or confine it to the June 2006 note. 2. Cross-Complaint Page and Wertheim cross-complained against the Omidvar parties only (not Currency Corporation) for fraud, breach of

4 fiduciary duty, and racketeering, alleging the Omidvar parties were Currency Corporation’s alter egos. 3. Arbitration Award Meanwhile, the arbitration panel awarded Wertheim $672,122 against Currency Corporation only, which the superior court confirmed. 4. Collection Litigation: LASC Case Nos. BC444248 and BC441026 Wertheim attempted to collect on the arbitration award, both in the instant lawsuit and by filing an enforcement action, LASC case No. BC444248, against Currency Corporation, the Omidvar parties (as alter egos of the Currency Corporation), and approximately 50 third-party royalty payors. Currency Corporation and Parviz Omidvar responded by filing a declaratory relief action to block enforcement, LASC case No. BC441026. The trial court consolidated the enforcement and counter- enforcement actions, and deemed them related to the instant lawsuit. 5. Currency II In 2013, we held that only the June 2006 note contained an arbitration clause, and that note pertained only to one loan. Therefore, the arbitrators exceeded their authority by rendering an award on 79 other loans made by Currency to Page. Accordingly, we reversed the judgment confirming Wertheim’s arbitration award and directed the trial court to vacate it. (Currency Corp. v. Wertheim (Sept. 30, 2013, B240444) [nonpub. opn.] (Currency II).)

5 6. Remand Proceedings Upon remand, the trial court dismissed the consolidated enforcement and counter-enforcement actions, and Maibell Page dismissed her cross-complaint. (Wertheim had already been dismissed from the cross-complaint for lack of standing.) Wertheim moved for an order directing the original arbitrators to affirm their findings and fashion a new award in Wertheim’s favor. However, the trial court observed that because Currency’s complaint sought only to enjoin or limit arbitration, and the cross-complaint had been dismissed, our ruling in Currency II effectively ended the lawsuit. Therefore, the court placed Wertheim’s motion off calendar. On January 8, 2015, the court entered judgment in favor of “Currency Corp.” and “Parviz Omidvar, Oliver Omidvar, O’Neil Omidvar and Tiffany Ventures, LLC,” declared “Currency” to be the prevailing party, and stated it would consider the entitlement of “Plaintiff Currency Corp.

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Currency Corp. v. Wertheim CA2/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/currency-corp-v-wertheim-ca21-calctapp-2021.