Schapiro-Thorn Inc. v. Mitchell CA1/3

CourtCalifornia Court of Appeal
DecidedApril 21, 2015
DocketA140800
StatusUnpublished

This text of Schapiro-Thorn Inc. v. Mitchell CA1/3 (Schapiro-Thorn Inc. v. Mitchell CA1/3) 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
Schapiro-Thorn Inc. v. Mitchell CA1/3, (Cal. Ct. App. 2015).

Opinion

Filed 4/21/15 Schapiro-Thorn Inc. v. Mitchell CA1/3 NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FIRST APPELLATE DISTRICT

DIVISION THREE

SCHAPIRO-THORN, INC., Plaintiff and Respondent, A140800 v. DANIEL L. MITCHELL, (City & County of San Francisco Super. Ct. No. CGC-09-495377) Defendant and Appellant.

Daniel L. Mitchell appeals from a judgment confirming an arbitration award entered against him in favor of his former attorneys Schapiro-Thorn, Inc. (Schapiro- Thorn). Mitchell’s sundry contentions are based on the fact the arbitration panel proceeded with the arbitration after the death of the party-arbitrator Mitchell had selected and refused to continue the hearing to permit Mitchell to select another party arbitrator. As troublesome as this circumstance may appear at first blush, the record fully supports the finding of the panel that Mitchell had “evinced his unwillingness to participate in [the arbitration] proceedings repeatedly during the scheduling of this matter” and that under the circumstances there was “no basis in law or equity” to continue the scheduled arbitration hearing. The arbitrator designated by Mitchell had been ill for an extended period of time, neither he nor Mitchell (himself an attorney) had participated in any of the noticed prehearing conferences or complied with any of the prescribed preliminary procedures, and Mitchell had failed to replace his designated arbitrator despite his extended inability to participate in the proceedings.

1 We agree with the trial court’s implicit determination that there is no statutory basis to vacate the arbitration award, and agree that the award was properly confirmed. Background Schapiro-Thorn, in the person of Suzie Thorn, represented Mitchell in marriage dissolution proceedings and, in December 2009, brought an action against him to collect $197,728.55 of attorney fees and costs. In February 2010 Mitchell answered the complaint and filed a cross-complaint against the law firm alleging negligence, breach of contract and fraud.1 On May 11, 2010, pursuant Schapiro-Thorn’s unopposed motion, the court ordered the parties to arbitrate their dispute in accordance with the arbitration provision in their fee agreement,2 and stayed the judicial proceedings pending the outcome of the arbitration. The arbitration provision required each party to select a “party arbitrator” who, in turn, would select a “neutral arbitrator.” Schapiro-Thorn selected Honorable Harry Low (ret.) as its party arbitrator on May 24, 2010. Mitchell initially refused to select his arbitrator and, in October, Schapiro-Thorn moved for an order compelling him to do so. The court granted this motion on November 4, 2010, and on November 15, 2010, the last date permitted by the court’s order, Mitchell selected attorney Herman C. Meyer as his

1 Schapiro-Thorn has contended that it was not properly served with the cross-complaint because it was served by Mitchell himself, a party to the action. For present purposes it is unnecessary to describe proceedings in the trial court challenging the sufficiency of the service and the motion to vacate the entry of Schapiro-Thorn’s default on the cross- complaint. In all events no answer to the cross-complaint was filed. 2 The arbitration agreement in the parties’ fee agreement reads in relevant part as follows: “If . . . a dispute exists between the attorney and client regarding attorney’s fees and/or costs due under this Agreement or regarding a claim of attorney malpractice, . . . the dispute will be submitted for arbitration, and the attorney and client will be bound by the result. [¶] . . . [¶] Arbitration shall be in accordance with Code of Civil Procedure § 1280 et seq. with each party selecting a party arbitrator who, in turn, shall select a neutral arbitrator . . . . [¶] A ruling by the majority of arbitrators shall conclusively resolve the dispute, and the parties agree that the court having jurisdiction may enter judgment upon the decision of the arbitrators, including costs and a reasonable allowance of attorney fees involved in securing said judgment to the extent by law. Neither party shall have any right to appeal the decision of the arbitrators. . . .” (Emphasis in original.)

2 party arbitrator. The two arbitrators failed to select the third neutral arbitrator (likely as the result of Meyer’s failure to agree to anyone, although the record is not clear in this respect), and over a year later, on November 29, 2011, in response to Schapiro-Thorn’s motion, the court designated Honorable David Garcia (ret.) as the third arbitrator. Mitchell then refused to pay the initial arbitration fees charged by JAMS- Endispute. Schapiro-Thorn filed still another motion to compel him to do so, which the court granted on August 23, 2012. Mitchell failed to comply with the order and on December 5, 2012 and December 24, 2012 the court issued orders to show cause re contempt. On March 11, 2013, the court, although not holding Mitchell in contempt, ordered him to pay $1,500 to Schapiro-Thorn as a discovery sanction. Mitchell failed to pay his half of JAMS’s fees for a two-day arbitration by the July 7, 2013 deadline, or by the extended July 23 deadline, and Schapiro-Thorn thereupon paid the entire fee for a one-day hearing. On March 20, 2013, Schapiro-Thorn filed its “Notice of Claim” in the arbitration proceedings. Mitchell filed no response or statement of affirmative defenses, although a response is permitted and affirmative defenses are required to be filed within 14 days of service of the claimant’s notice under JAMS Comprehensive Arbitration Rules and Procedures.3 On March 18, 2013 — almost three years after arbitration had been ordered — the administrative assistant to Judge Garcia, also referred to as the case manager, advised Schapiro-Thorn’s attorney that she had contacted Meyer in an attempt to arrange an initial telephone conference between the three arbitrators and had learned that Meyer was hospitalized with internal bleeding and would not be available to participate until the second week in April. On April 12, 2013, the administrative assistant sent an email to

3 Rule 9(c) of the Comprehensive Arbitration Rules and Procedures reads: “Within fourteen (14) calendar days of service of the notice of claim, a Respondent may submit to JAMS and serve on other Parties a response and must so submit and serve a statement of any affirmative defenses (including jurisdictional challenges) or counterclaims it may have.”

3 counsel and to Mitchell advising them of Meyer’s continuing unavailability: “Herman Meyer, one of the three arbitrators in this case has been unavailable due to health issues. I have received a message from his family that at this point he is unavailable to work on the arbitration but hopes to be available within the next month.” The assistant said she would discuss the matter with Judge Garcia and then advise the parties of “our next steps.” Four days later the administrative assistant sent an email message to Mitchell, copies to counsel, advising that she had spoken to Judge Garcia “to let him know that Mr. Meyer is very ill and right now unable to participate as an arbitrator (he does want to continue eventually)” and that she would like to schedule a conference call the following week with Judge Garcia “to discuss the issue of Mr.

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Bluebook (online)
Schapiro-Thorn Inc. v. Mitchell CA1/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schapiro-thorn-inc-v-mitchell-ca13-calctapp-2015.