Plantations at Haywood 1, LLC v. Plantations at Haywood, LLC

CourtCalifornia Court of Appeal
DecidedFebruary 10, 2025
DocketG062909
StatusPublished

This text of Plantations at Haywood 1, LLC v. Plantations at Haywood, LLC (Plantations at Haywood 1, LLC v. Plantations at Haywood, LLC) 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
Plantations at Haywood 1, LLC v. Plantations at Haywood, LLC, (Cal. Ct. App. 2025).

Opinion

Filed 2/10/25

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

PLANTATIONS AT HAYWOOD 1, LLC et al. G062909 Plaintiffs, (Super. Ct. No. 30-2017-00901157) v. OPINION PLANTATIONS AT HAYWOOD, LLC,

Defendant and Respondent;

KENNETH J. CATANZARITE,

Objector and Appellant.

Appeal from an order of the Superior Court of Orange County, Randall J. Sherman, Judge. Affirmed, motion for sanctions granted, and remanded with directions. Catanzarite Law Corporation, Kenneth J. Catanzarite, and Tim James O’Keefe for Objector and Appellant. Shumener, Odson & Oh, Henry H. Oh, and Edward O. Morales, for Defendant and Respondent. * * * This appeal arises out of proceedings to confirm an arbitration award. Kenneth J. Catanzarite, counsel for plaintiffs in this litigation, filed an opposition on their behalf to defendant Plantations of Haywood, LLC’s (Plantations) petition to confirm the award, prompting Plantations to move for an award of monetary sanctions against him. The trial court confirmed the arbitration award and then granted Plantations’s motion under Code of Civil Procedure section 128.7, 1 imposing $37,000 in sanctions against Catanzarite for filing and refusing to withdraw what the court concluded was a frivolous and factually unsupported opposition. Catanzarite appeals the award, arguing he was statutorily allowed to file an opposition on behalf of his clients and that “[p]laintiff[s were] perfectly free to contest what the Arbitrator’s Award did nor did not ‘detail’, and further to address evidence to which the Arbitrator did not consider or reflect in his Award.” He contends “[p]laintiff[s were] allowed to contest those facts in order to avoid them being admitted, including for purposes of an appeal.” We disagree. A party’s abstract right to oppose a petition, or to preserve arguments for appeal, is not an entitlement to pursue frivolous arguments in the trial court or this court. Nor are we persuaded by Catanzarite’s contention that his reliance on a case he knew had been explicitly disapproved by our Supreme Court, on the very point he cites no less, demonstrates his argument was a

1 All further statutory references are to this code.

2 reasonable one to make. We consequently find no abuse of discretion in the trial court’s sanction award against Catanzarite. Plantations’s response to Catanzarite’s opening brief on appeal included a motion for sanctions which we also conclude is meritorious. Catanzarite filed an opening brief in this court which repeats the arguments he made below—including his refusal to acknowledge the binding Supreme Court authority that fatally undermines his claim, and his opposition to the sanctions motion is more of the same. Plantations’s sanctions motion was supported by a declaration setting forth the basis of the amount of sanctions requested, which Catanzarite does not contest. Nonetheless, because Plantations’s supporting evidence is conclusory, we remand the case to the trial court with directions to set a hearing on the matter if requested by either of the parties, and to determine the appropriate amount. FACTS The parties in this case were engaged in a real estate dispute, with plaintiffs, 2 represented by Catanzarite, alleging they were defrauded into exchanging their interests in an apartment complex for interests in a limited liability company. The dispute was ordered into arbitration at the request of plaintiffs, and the arbitrator ruled in favor of Plantations. In February 2023, Plantations petitioned the court to confirm the arbitration award pursuant to section 1285. Catanzarite filed an “Omnibus Response” (response) addressing both Plantations’s petition and a petition to confirm the same arbitration

2 Plaintiffs are not parties to this appeal.

3 award in favor of separate parties. The response summarized the arbitrator’s decision and asserted the arbitrator “exceeded his power in refusing to hear undisputed evidence, and . . . he abused his discretion in finding in favor of [Plantations].” Catanzarite asserted the award must be vacated pursuant to section 1286.2, subdivisions (a)(4) (arbitrator exceeded his powers) and (a)(5) (arbitrator refused to “hear” material evidence). Catanzarite’s supporting declaration stated, “[a]lthough the Arbitrator ostensibly admitted all or nearly all exhibits ‘into evidence’, this was done only as a pretext to allow the Arbitrator to willfully refuse to hear dispositive evidence . . . . All exhibits attached hereto were exhibits ostensibly ‘admitted’ in the Arbitration.” Catanzarite cited no evidence in his briefing or at oral argument to support his claim, i.e., no admissions, statements, or rulings by the arbitrator that suggested any refusal on the arbitrator’s part to consider the evidence offered by plaintiffs. Instead, Catanzarite’s argument was that because his documents had “plainly show[ed]” facts that were inconsistent with the arbitrator’s award, the arbitrator must have ignored plaintiffs’ documents. In other words, since Catanzarite disagreed with the award, the arbitrator must have willfully ignored his clients’ evidence. Catanzarite then sought an order vacating the arbitration award, arguing that such relief was supported by section 1286.2, subdivision (a)(4), because the arbitrator “exceeds his authority by denying a litigant a fair hearing” and by section 1286.2, subdivision (a)(5), because his clients “‘were substantially prejudiced . . . by the refusal of the arbitrator [] to hear evidence material to the controversy . . . .’” Plantations responded by filing a motion for sanctions against Catanzarite under section 128.7. Plantations’s motion cited four bases for the

4 imposition of sanctions: (1) “Catanzarite requested that the Court vacate the Award by attacking the Arbitrator’s legal and factual conclusions despite well-established law holding that such attacks are not grounds to vacate an arbitration award . . .”; (2) “Catanzarite’s contention that the Arbitrator refused to hear evidence violates Code of Civil Procedure [section] 128.7[, subdivision] (b)(2) and (3)”; (3) “Catanzarite’s contention that the Arbitrator admitted evidence ‘only as a pretext’ violates Code of Civil Procedure [section] 128.7[, subdivision] (b)(2) and (3)”; and (4) “The Plaintiffs’ Response and Catanzarite’s declaration demonstrate that the legal and factual contentions and arguments therein are being presented to the Court primarily for an improper purpose such as to harass or cause unnecessary delay or needless increase in the cost of litigation.” Plantations pointed out that Catanzarite did not submit any evidence to support his claim “that the arbitrator refused to hear any evidence.” Instead, Plantations noted that Catanzarite conceded “that the arbitrator admitted ‘all or nearly all’ of Plaintiffs’ documents and testimony into evidence,” and relied on Gonzales v. Interinsurance Exchange (1978) 84 Cal.App.3d 58, 63 (Gonzales), for the proposition that “[l]egally speaking, the admission of evidence is to hear it”—thus establishing that Catanzarite’s own concession had fatally undermined his claim. Plantations also argues Catanzarite did not offer any evidence to support his claim that the arbitrator’s admission of the evidence was a mere “pretext” to allow the arbitrator to disguise his willful refusal to hear dispositive evidence, or that the arbitrator had otherwise exceeded his powers. Plantations argued that “any reasonable attorney would find that the legal and factual contentions in the Response and Catanzarite declaration are frivolous. This is because Plaintiffs’ Response and request to

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Bluebook (online)
Plantations at Haywood 1, LLC v. Plantations at Haywood, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plantations-at-haywood-1-llc-v-plantations-at-haywood-llc-calctapp-2025.