Kroenke Sports & Entertainment v. Salomon CA2/7

CourtCalifornia Court of Appeal
DecidedFebruary 7, 2023
DocketB320536
StatusUnpublished

This text of Kroenke Sports & Entertainment v. Salomon CA2/7 (Kroenke Sports & Entertainment v. Salomon CA2/7) 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
Kroenke Sports & Entertainment v. Salomon CA2/7, (Cal. Ct. App. 2023).

Opinion

Filed 2/7/23 Kroenke Sports & Entertainment v. Salomon CA2/7 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

KROENKE SPORTS & B320536 ENTERTAINMENT, LLC et al., (Los Angeles County Plaintiffs and Respondents, Super. Ct. No. 18STCP02712, v. 19STCP00654)

NICOLAS A. SALOMON,

Defendant and Appellant.

APPEAL from a judgment of the Superior Court of Los Angeles County, David Sotelo, Judge. Dismissed. Fish & Richardson and Jeremy D. Anderson for Defendant and Appellant. Wilson Sonsini Goodrich & Rosati, Susan K. Leader and Will A. Ostrander for Plaintiffs and Respondents. INTRODUCTION

Kroenke Sports & Entertainment, LLC and its affiliates, Outdoor Channel Holdings, Inc., SkyCam, LLC, and CableCam, LLC, (collectively, Kroenke) filed an arbitration demand against Nicolas Salomon, former president of SkyCam and CableCam, claiming he misappropriated confidential information. The arbitrator awarded Kroenke $440,126.48, plus interest, on its claims. In March 2019 the trial court entered judgment confirming the award. The arbitrator then issued a second award, dismissing Salomon’s counterclaims against Kroenke. In March 2022 the court entered judgment confirming that award. Salomon appeals from the March 2022 judgment. Salomon challenges the March 2019 judgment on the ground the trial court lacked authority to confirm the arbitrator’s first award under Code of Civil Procedure section 1283.4.1 He also challenges the March 2022 judgment, arguing the court should have vacated the arbitrator’s second award because the arbitrator refused to hear evidence material to the case. Because the March 2019 judgment was a final judgment from which Salomon did not timely appeal, we dismiss as untimely the portion of his appeal challenging that judgment. We dismiss the rest of Salomon’s appeal as moot because, in a separate lawsuit in Delaware, he has obtained the relief sought by his counterclaims in the arbitration and therefore reversing the March 2022 judgment would provide him no effective relief.

1 Statutory references are to the Code of Civil Procedure.

2 FACTUAL AND PROCEDURAL BACKGROUND

A. The Arbitrator Issues an Award, and the Trial Court Enters a Judgment In January 2018 Kroenke filed an arbitration demand against Salomon with Judicial Arbitration and Mediation Services, Inc. (JAMS). Kroenke asserted breach of contract and other claims, based on allegations Salomon had misappropriated confidential information from SkyCam and CableCam before they terminated his employment as their president in 2014. Kroenke filed the demand pursuant to a 2009 employment agreement with Salomon, which provided JAMS would administer arbitration between the parties. In February 2018 Salomon filed a response to the demand that included a request to dismiss the proceeding for lack of jurisdiction. Citing a 2011 employment agreement between the parties that provided the American Arbitration Association (AAA) would administer arbitration, Salomon argued AAA, not JAMS, had to conduct any arbitration between the parties. Salomon did not assert any counterclaims in his response to Kroenke’s demand for arbitration, but “reserve[d] the right to assert . . . such Counterclaims as may be available to him” in the event his jurisdictional challenge did not succeed. In a March 2018 email exchange with the arbitrator’s case administrator, Salomon indicated he was without counsel in the arbitration and asserted Kroenke was obligated to provide him counsel under an “Indemnification Agreement” between the

3 parties.2 Salomon wrote: “Can you please see if the arbitrator can address this lack of counsel issue? I would like to have counsel for the hearing.”3 Later in March 2018, the arbitrator held a telephonic hearing on Salomon’s jurisdictional challenge. Salomon participated without counsel and again claimed Kroenke was obligated to indemnify him in the arbitration proceeding. Kroenke argued that indemnification was “an issue to be resolved at the end of the case” and that Salomon’s request for indemnification was “not ripe.” The arbitrator told the parties “the issue of indemnification raised by Mr. Salomon was reserved and would be addressed at a later date” and urged Salomon to obtain counsel. The arbitrator issued a written order rejecting Salomon’s jurisdictional challenge and ruling the “arbitration properly is a JAMS arbitration.” The arbitrator observed that, at an earlier conference in the arbitration, he had ruled he would decide the jurisdictional issue before considering Kroenke’s request for a temporary restraining order and preliminary injunction and Salomon’s request for “a determination of a right to indemnification for his attorneys’ fees in connection with this arbitration.’’ In May 2018 the arbitrator held a hearing on Kroenke’s request for a temporary restraining order and preliminary injunction, after which the arbitrator issued a written ruling

2 Salomon, however, was represented at that time by counsel in an action he had filed against Kroenke in the United States District Court for the Northern District of Texas.

3 It is not clear what hearing Salomon was referring to.

4 granting the request. In his ruling the arbitrator stated that Salomon had participated in the hearing without counsel, that during the hearing the arbitrator advised him repeatedly to obtain counsel to represent him in the arbitration, and that during the hearing the arbitrator also stated Salomon’s “repetition of a right to indemnification or the like is no reason or excuse for a stay or further delay of this arbitration.” The arbitrator added that, after the hearing, Salomon submitted by email a request for a stay of any decision on Kroenke’s “request for injunctive relief,” which the arbitrator “denied or denied again—(A) because Mr. Salomon, . . . without specifics, said that he is close to retaining (unnamed) new counsel, but (again without specifics) is having difficulty because of ‘who Claimants are,’ and (B) he should not have to defend this arbitration unless and until Claimants are required to advance his legal fees.” In July 2018 the arbitrator held a hearing in Los Angeles on the merits of Kroenke’s claims. Despite having agreed to the date and location of the hearing and having received notice of the hearing a month in advance, Salomon did not participate. At the hearing Kroenke presented extensive evidence in support of its claims. On September 6, 2018 the arbitrator issued a “Partial Final Award” (the “first arbitration award”), awarding Kroenke $440,126.28, plus interest, on its claims. The award also provided: “This Partial Final Award does not cover Mr. Salomon’s claim for indemnification, which shall remain reserved for future resolution—subject to the express condition that Mr. Salomon shall file and serve a counterclaim in this arbitration, within ten (10) days of the issuance of this Partial Final Award, setting forth his claim for indemnification,

5 including the basis or bases for that claim.” The award further provided: “This Partial Final Award fully and finally determines all claims, remedies . . . and principal issues and contentions concerning Mr. Salomon’s liability to Claimants in this arbitration. [¶] Except for Mr.

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Kroenke Sports & Entertainment v. Salomon CA2/7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kroenke-sports-entertainment-v-salomon-ca27-calctapp-2023.