Hundert v. Barazani CA2/7

California Court of Appeal·Decided September 9, 2026·No. B340225·Unpublished

Opinion

Filed 9/9/26 Hundert v. Barazani CA2/7 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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 SEVEN

KEVIN HUNDERT, B340225

Plaintiff and Respondent, (Los Angeles County Super. Ct. No. 24VECV00997)

v.

SHARONE BARAZANI et al.,

Defendants and Appellants.

APPEAL from an order of the Superior Court of Los Angeles County, Eric Harmon, Judge. Dismissed.

Ablon, Lewis, Bass & Gale, Jerald E. Gale and Lawrence J.

Poteet for Defendants and Appellants.

Ross Legal Corp. and Polina L. Ross for Plaintiff and Respondent.

INTRODUCTION

Sharone Barazani and CA Homes Fund, Inc. (collectively, CA Homes) appeal from an order denying their second motion to compel arbitration, which the trial court determined raised the same issues as their first motion to compel arbitration. CA Homes did not appeal from the court’s order denying the first motion to compel arbitration. We conclude CA Homes appeals from a nonappealable order and dismiss the appeal because we lack jurisdiction.

FACTUAL AND PROCEDURAL BACKGROUND

Barazani is a licensed realtor for Coldwell Banker Real Estate, LLC. He is an officer and principal of CA Homes Fund, Inc. In 2020, CA Homes purchased a residential property in Sherman Oaks, which it renovated and sold to Kevin Hundert in 2021. Barazani was the listing agent.

In 2024, Hundert sued Barazani, CA Homes, and Coldwell Banker for negligence, negligent misrepresentation, breach of contract, fraud, construction defects and fraudulent business practices.1 Hundert alleged CA Homes, as the seller, and Barazani, as the seller’s agent, made multiple representations to Hundert during the disclosure period, including that: the roof was new; CA Homes obtained permits for the renovations to the home; the renovations complied with applicable building codes; there were no material defects; no one had died in the home

1 Coldwell Banker was not served nor did it appear in the case. It is not a party to this appeal.

within the last three years; and the electrical, plumbing, and appliances were new. Hundert alleged these statements were false and, among other things, he discovered various defects in the home’s roof, retaining wall, and appliances.

A. The First Motion To Compel Arbitration CA Homes moved to compel arbitration, relying on the following provision in the form purchase contract signed by the parties: “The Parties agree that any dispute or claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. . . . Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act [FAA]. . . [¶] . . . ‘By initialing in the space below you are agreeing to have any dispute arising out of the matters included in the “arbitration of disputes” provision decided by neutral arbitration as provided by California law and you are giving up any rights you might possess to have the dispute litigated in a court or jury trial.’ [Bold and capitalization omitted.]” CA Homes advised the court the parties had participated in mediation, as the contract required, but were unsuccessful in resolving their dispute. CA Homes requested the court order the action stayed pending the outcome of arbitration. Although the arbitration provision stated enforcement would be governed by the FAA, CA Homes did not rely on the FAA in its motion, and it instead stated it moved to compel arbitration “pursuant to California Code of Civil Procedure Sections 1281.2 and 1281.4” and cited only California case law.

Hundert opposed and argued the allegations in his complaint did not fall within the scope of the arbitration

provision because they were mainly premised on CA Homes’ negligent construction of the property rather than breach of the purchase contract. Hundert further argued Barazani and Coldwell Banker were not signatories to the purchase contract and as a matter of law could not compel arbitration. Lastly, Hundert asserted the arbitration provision was governed by the FAA, which prohibited the court from staying the litigation.

CA Homes, in its reply brief, argued the arbitration provision “clearly provides that California substantive state law pertaining to arbitration is to be applied,” and it also argued the FAA authorized the court to stay the proceedings pending arbitration. CA Homes did not otherwise rely on the FAA as a basis for its motion to compel arbitration.

On May 28, 2024, the trial court granted the motion to compel arbitration of Hundert’s breach of contract claim but stayed the matter as to the tort claims. The court reasoned that although “any arbitration conducted pursuant to the Agreement’s arbitration clause is to be done in accordance with the California Arbitration Act [CAA], enforcement of the arbitration clause, including a motion to compel arbitration, is to be governed by the [FAA]. (See Victrola 89, LLC v. Jaman Properties 8 LLC (2020) 46 Cal.App.5th 337, 346 [(Victrola 89)] [‘[W]hen an agreement provides that its “enforcement” shall be governed by the FAA, the FAA governs a party’s motion to compel arbitration.’].)”

The court then interpreted the arbitration provision to encompass only disputes relating to the interpretation and performance of the purchase agreement because the arbitration provision extended only to disputes “ ‘arising . . . out of this Agreement.’ ” Citing California authorities, the court determined the arbitration provision did not encompass Hundert’s tort causes

of action. Specifically, the court followed Rice v. Downs (2016) 248 Cal.App.4th 175 (Rice), which addressed whether an arbitration provision containing the phrase disputes “arising out of” a contract could be interpreted to subject tort claims to arbitration. Rice examined both federal and state authorities that utilized the CAA and the FAA to consider the question and concluded that the phrase “arising out of” was narrow in application and “extended only to disputes relating to the interpretation and performance of the agreement.” (Rice, at pp. 189–190.) As a result, the court granted the motion only as to the third cause of action for breach of contract, denied the motion as to the remaining five tort causes of action, and stayed the proceedings pending the outcome of arbitration. CA Homes did not appeal this ruling.

B. The Second Motion To Compel Arbitration On June 20, 2024, approximately three weeks after the trial court issued its ruling on the first motion to compel arbitration, CA Homes filed a second motion to compel arbitration. CA Homes argued the trial court erroneously relied on case law interpreting arbitration agreements pursuant to and under the CAA even though the arbitration provision stated, “ ‘Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act. [Bold omitted.]’ ” CA Homes cited Victrola 89, supra, 46 Cal.App.5th at page 337 to argue that, “Pursuant to the Federal Arbitration Act, the parties are required to arbitrate any and all disputes which arise out of the ‘Agreement or any resulting transaction.’ ” As stated, the trial court had previously relied on Victrola 89 and California state

cases addressing the FAA in its ruling denying the first motion to compel arbitration.

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