Glaser, Weil, Fink, Jacobs & Shapiro, LLP v. Goff

194 Cal. App. 4th 423, 125 Cal. Rptr. 3d 26, 2011 Cal. App. LEXIS 445
CourtCalifornia Court of Appeal
DecidedApril 15, 2011
DocketNo. B220639
StatusPublished
Cited by13 cases

This text of 194 Cal. App. 4th 423 (Glaser, Weil, Fink, Jacobs & Shapiro, LLP v. Goff) 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
Glaser, Weil, Fink, Jacobs & Shapiro, LLP v. Goff, 194 Cal. App. 4th 423, 125 Cal. Rptr. 3d 26, 2011 Cal. App. LEXIS 445 (Cal. Ct. App. 2011).

Opinions

Opinion

ROTHSCHILD, Acting P. J.

George and Esther Goff appeal from a judgment confirming an arbitration award in favor of the law firm Glaser, Weil, Fink, Jacobs & Shapiro, LLP1 (the Firm), which previously represented the Goffs. The parties submitted a fee dispute to arbitration. The arbitrators issued an award for the Firm in the amount of $654,658.28 plus interest. The Goffs contend that the trial court should have vacated the award because the arbitrators exceeded their powers by ruling that the arbitration was binding. We agree and therefore reverse.

[429]*429BACKGROUND

I. Procedural Summary

On March 25, 2009, the Goffs and the Firm participated in a fee arbitration pursuant to the Mandatory Fee Arbitration Act (Bus. & Prof. Code, § 6200 et seq.; MFAA) under the rules of the Los Angeles County Bar Association (LACBA) and its in-house arbitration services provider, Dispute Resolution Services, Inc. (DRS). On June 22, 2009, after concluding the parties had agreed to binding arbitration, the panel of three arbitrators issued an award in favor of the Firm in the amount of $654,658.28 in fees and costs, plus 10 percent simple interest from February 10, 2007, through the date of the award.

In July 2009, the Firm filed a petition and motion to confirm the award. The Goffs opposed the petition and motion, arguing that the arbitrators exceeded their powers by purporting to issue a binding award although the Goffs had not agreed to binding arbitration. They sought to have the award vacated and declared nonbinding, and they requested 30 days in which to file a rejection of the award and a request for trial de novo.

After conducting three hearings, the court granted the Firm’s petition and entered judgment confirming the award in the amount of $838,068.98, including interest.

II. The Fee Arbitration

The Goffs operate an art gallery, and they retained the Firm to represent them in a dispute with an artist concerning royalties. On September 25, 2007, the Firm sent the Goffs a letter advising them that they owed the Firm $654,658.28 in unpaid fees and costs on account of invoices from the Firm dated October 4, 2005, through January 5, 2007. The Firm advised the Goffs it would be filing an action in the Los Angeles County Superior Court to collect the fees and costs owed, and that the Goffs had the right under the MFAA to submit the matter to arbitration through LACBA.

On January 8, 2008, the Goffs submitted a request for binding arbitration of the fee dispute to LACBA’s arbitration services provider, DRS.

On April 3, 2008, the Firm advised DRS that it declined binding arbitration.

DRS then sent a letter to the parties, advising them that an arbitration panel was appointed consisting of Timothy D. Reuben, Verna L. Porter, and [430]*430Bernard L. Krasnow, with Reuben as chairman. The letter indicated that the Firm had declined binding arbitration, and it advised the parties that if they agreed to binding arbitration before the start of the arbitration, then the arbitration would become binding.

On July 16, 2008, Reuben sent a letter to the parties proposing dates for the arbitration and asking whether the Firm would agree to binding arbitration.

On July 31, 2008, after having learned the identities of the arbitrators, the Firm advised Reuben it would agree to binding arbitration.

On August 8, 2008, Reuben again wrote to the parties, stating that “both sides have now agreed to have this matter heard as a binding arbitration.” Reuben nonetheless asked that the parties sign and return a “Stipulation for Binding Arbitration.” Counsel for the Firm signed the stipulation on the Firm’s behalf on August 15, 2008, and one of the Firm’s partners signed it on August 18, 2008.

On September 30, 2008, the Goffs advised Reuben that they would not agree to binding arbitration.

On December 5, 2008, the Firm asked the arbitrators to resolve the issue of whether the arbitration was binding as soon as possible, because the arbitration was scheduled to commence on January 9, 2009.

On December 11, 2008, Reuben ruled that the Goffs’ original request for binding arbitration constituted an offer that was accepted by the Firm. Reuben reasoned that the Firm had not indicated a willingness to withdraw its request for binding arbitration, and the Goffs had requested binding arbitration in their initial papers.

The arbitrators heard the substance of the parties’ fee dispute on March 25, 2009. There was no reporter present for the arbitration hearing.

On June 22, 2009, the arbitrators issued their award in favor of the Firm. The arbitrators found that the Firm generated a total bill of $1,187,362.43 in fees and costs in connection with the Goffs’ dispute with the artist, and that the Goffs did not dispute that they owed the Firm fees, the amount of time billed, or the Firm’s billing rates. The arbitrators found that under the several fee agreements between the Goffs and the Firm, the Firm was entitled to all fees sought and awarded $654,658.28 in fees plus 10 percent simple interest from February 10, 2007, through the date of the award.

[431]*431The award expressly reiterated the arbitrators’ prior ruling that the award was binding because the parties had agreed in writing to be bound; “This matter is subject to binding arbitration. The Goffs agreed to binding arbitration in their initial submission to the [LACEA] Dispute Resolution Services. The Firm indicated non-binding arbitration in its initial submission, but then changed its position to elect binding arbitration in agreement with the Goffs. After the Goffs saw that the Firm had also agreed to elect binding arbitration, the Goffs requested that their binding arbitration election be withdrawn. The Firm objected. A determination was made on December 11, 2008, ruling that the original election by the Goffs of binding arbitration was an offer that was accepted by the Firm and could not be revoked once accepted.”

The award was accompanied by a form from LACEA entitled “Notice of Your Rights After Fee Arbitration,” advising the Goffs that after service of a nonbinding arbitration award they had 30 days to seek a new trial in court, and after service of a binding arbitration award they had 100 days to file a petition to vacate or correct the award.

III. The Petition to Confirm the Award

On July 13, 2009, the Firm filed a petition to confirm the arbitrators’ award. The petition stated that the parties had agreed in writing prior to the arbitration that the award would be binding. On July 17, 2009, the Firm filed a motion to confirm the arbitration award pursuant to Code of Civil Procedure section 1285 and for entry of judgment thereon.

On August 18, 2009, the Goffs filed opposition to the Firm’s petition and motion, contending that the arbitrators exceeded their powers by ruling that the arbitration was binding. The Goffs argued that the Firm’s rejection of their offer of binding arbitration terminated the offer, which the Firm therefore could not accept later when it changed its position; accordingly, the parties never agreed to binding arbitration.

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Cite This Page — Counsel Stack

Bluebook (online)
194 Cal. App. 4th 423, 125 Cal. Rptr. 3d 26, 2011 Cal. App. LEXIS 445, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glaser-weil-fink-jacobs-shapiro-llp-v-goff-calctapp-2011.