Faitro v. Top Surgeons CA2/4

CourtCalifornia Court of Appeal
DecidedApril 4, 2023
DocketB307742
StatusUnpublished

This text of Faitro v. Top Surgeons CA2/4 (Faitro v. Top Surgeons CA2/4) 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
Faitro v. Top Surgeons CA2/4, (Cal. Ct. App. 2023).

Opinion

Filed 4/4/23 Faitro v. Top Surgeons CA2/4 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 FOUR

JOHN FAITRO et al., B307742

Plaintiffs and Respondents, (Los Angeles County Super. Ct. No. BC454464) v.

TOP SURGEONS, INC., et al.,

Defendants and Appellants.

APPEAL from a judgment of the Superior Court of Los Angeles County, Kenneth Freeman, Judge. Affirmed as Modified. Kamille Dean for Defendants and Appellants Michael Omidi, M.D., and Cindy Omidi. Mark Madison for Defendants and Appellants Almont Ambulatory Surgery Center, Inc.; Antelope Valley Surgical Center, Inc.; Beverly Hills Surgery Center, LLC; California Hospital Management & Collections, Inc.; Lap Band Specialists, LLC; New Life Surgery Center, LLC; Skin Cancer and Reconstructive Surgery Specialists of Beverly Hills; Skin Cancer and Reconstructive Surgery Specialists of Valencia; Top Surgeons, LLC; Woodlake Ambulatory Surgery Center, Inc.; and 1 800 Get Thin, LLC. Ian Shakramy for Defendants and Appellants Surgery Center Management, LLC. Julian Omidi, in pro. per., for Defendant and Appellant Julian Omidi. Law Offices of John M. Walker and John M. Walker; Robertson & Associates and Alexander Robertson, IV, for Plaintiffs and Respondents. ____________________

INTRODUCTION In 2011, plaintiffs initiated a class action lawsuit against various defendants, including individuals and affiliated surgery centers, based on their advertising campaign for “lap band” weight loss surgeries. In 2015, the parties executed a final class action settlement agreement. Five years later, in 2020, the trial court entered judgment after granting the motion approving the class action settlement. (Code Civ. Proc., § 664.6; Cal. Rules of Court, rule 3.769(h).)1 The court took a pending petition to compel arbitration off calendar as moot. The defendants raise a host of alleged shortcomings with the proceedings below, including: (1) plaintiffs’ breaches of the settlement agreement that undermined the propriety of the class action settlement; (2) material departures from the settlement agreement in the trial court’s judgment; (3) an unreasonably high attorney fee award for class counsel; and (4) the “denial” of the petition to compel arbitration. As a preliminary matter, we conclude only two of the defendants (Top Surgeons, LLC and Surgery Center Management, LLC) have standing to

1 All further statutory references are to the Code of Civil Procedure unless otherwise stated.

2 challenge the judgment, given that the judgment was not entered against the remaining defendants and they were not aggrieved by it. In addition, while Top Surgeons and Surgery Center Management generally have standing on appeal, they nevertheless lack standing to raise issues that affect class members only. For the most part, we reject the contention that the judgment altered the terms of the parties’ settlement agreement instead of mirroring them as it should have. The judgment did alter two material terms as to the financial obligation of Surgery Center Management and the timeline for payment of the settlement amount; we thus modify the judgment to reflect the terms agreed upon in the settlement agreement on those points. To the extent the issue has not been waived, we reject the contention that the trial court failed to properly scrutinize the attorney fee award, and we find no abuse of discretion in the amount of the award. As modified, we affirm the judgment. The trial court’s order taking the petition to compel arbitration off calendar is a nonappealable order, and we dismiss the appeal taken from that order.

3 FACTUAL AND PROCEDURAL HISTORY In 2011, plaintiffs2 filed a class action lawsuit against 15 defendants comprised of individuals and affiliated surgical centers3 (collectively, defendants). The operative complaint alleged violations under the Unfair Competition Law (Bus. & Prof. Code, § 17200 et seq.), the False Advertising Law (Bus. & Prof. Code, § 17500 et seq.) and the Consumer Legal Remedies Act (Civ. Code, § 1750 et seq.), based on defendants’ advertising campaign for “lap band” weight loss surgeries.

I. Settlement Agreement In February 2015, the parties executed a final written settlement agreement and general release (settlement agreement). The settlement agreement defined the “Settling Defendant” as Top Surgeons, the “Guarantying Defendant” as Surgery Center Management, and the “Dismissed Defendants” as Surgery Center Management along with the remaining defendants. The “Settling Defendant” was to “wire to a qualified

2 The named plaintiffs were John Faitro, as an individual and as the personal representative of the Estate of Laura Lee Faitro, deceased; Arturo and Elvia Renteria, as individuals and as the personal representatives of the Estate of Ana Renteria, deceased; Bridget Sandoval; Susan Blackburn, guardian ad litem for Taylor Blackburn, a minor; Jessica Bleaman; Susan Leverett; Connie Maria Herrera; and April Moreno.

3 Michael, Cindy, and Julian Omidi; Top Surgeons, LLC (Top Surgeons); Surgery Center Management, LLC (Surgery Center Management); Almont Ambulatory Surgery Center, Inc.; Antelope Valley Surgical Center, Inc.; Beverly Hills Surgery Center, LLC; California Hospital Management & Collections, Inc.; Lap Band Specialists, LLC; New Life Surgery Center, LLC; Skin Cancer and Reconstructive Surgery Specialists of Beverly Hills; Skin Cancer and Reconstructive Surgery Specialists of Valencia; Woodlake Ambulatory Surgery Center, Inc.; and 1 800 Get Thin, LLC.

4 settlement fund (‘QSF’), set up by a claims administrator for the benefit of the settlement class, the sum of five hundred thousand dollars ($500,000) within fifteen (15) business days of the Court granting final approval of the Settlement.” “If the Settling Defendant cannot or does not transfer payment of the Settlement Funds as set forth in this Settlement Agreement, the Guarantying Defendant will be responsible for payment of the Settlement Funds within seven (7) calendar days of receiving notice that the Settling Payment [sic] has not transferred the Settlement Funds as required.” “Settling Defendant and Guarantying Defendant represent and warrant that each is financially solvent at the time of entering into this Settlement Agreement.” The agreement further stated, “It is affirmed and acknowledged that the Dismissed Defendants make no monetary contribution or payment toward settlement and are not apportioned any fault in connection with the Claims and causes of action and are hereby dismissed for waivers of costs, attorneys’ fees and claims for malicious prosecution.” The settlement agreement provided for the Settling Defendant to pay attorney fees and costs: “Defendants will not oppose Plaintiffs’ Counsel’s application to the appropriate court for attorneys’ fees up to and including the amount of six hundred thousand dollars ($600,000) and expenses not to exceed fifty-two thousand dollars ($52,000). The Parties acknowledge that the Court may award less than the amount requested but that such lesser award will not invalidate this Settlement.” The agreement also required payment for $100,000 in educational advertising, up to $75,000 in settlement administration costs, and $1,000 each for the nine class representatives. The agreement further provided: “Once the Settlement becomes Final . . . , the Settlement Fund will be distributed within fifteen (15) days to the Class Members who timely filed claim forms . . . . In addition, the payments

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Faitro v. Top Surgeons CA2/4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/faitro-v-top-surgeons-ca24-calctapp-2023.