Wong v. Sitzer CA4/3

CourtCalifornia Court of Appeal
DecidedAugust 11, 2023
DocketG061291
StatusUnpublished

This text of Wong v. Sitzer CA4/3 (Wong v. Sitzer CA4/3) 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
Wong v. Sitzer CA4/3, (Cal. Ct. App. 2023).

Opinion

Filed 8/11/23 Wong v. Sitzer CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FOURTH APPELLATE DISTRICT

DIVISION THREE

ELIZABETH WONG, as Trustee etc.,

Plaintiff and Appellant, G061291

v. (Super. Ct. No. 30-2020-01145830)

MICHAEL F. SITZER et al., OPINION

Defendants and Respondents.

Appeal from an order of the Superior Court of Orange County, Fred W. Slaughter, Judge. Reversed. Isaacs Friedberg, Jeffrey B. Isaacs and Jerome H. Friedberg for Plaintiff and Appellant. Nemecek & Cole, Frank W. Nemecek and Jon D. Robinson for Defendants and Respondents. * * * In this case involving an attorney, his law firm and their former client, plaintiff Elizabeth Wong1 appeals from the denial of her motion to compel arbitration pursuant to Code of Civil Procedure section 1281.2.2 The trial court denied plaintiff’s motion despite her written consent to participate in an arbitration demanded by defendants Michael F. Sitzer and Sitzer Law Group (SLG), based on an arbitration clause in an unsigned SLG retainer agreement. Although plaintiff avers she never signed the retainer agreement, she contends the undisputed facts demonstrated, as a matter of law, the existence of a post-dispute agreement to arbitrate. Alternatively, she argues the trial court erred in concluding the principles of waiver and estoppel do not apply under the circumstances. We do not reach the latter contentions because we agree the written arbitration demand and plaintiff’s written assent thereto, along with the parties’ actions in the arbitral forum and in court during the roughly 10 months following filing of the demand, evidence an agreement to arbitrate as a matter of law. Accordingly, we reverse the order denying plaintiff’s motion to compel arbitration. In doing so, we do not order the court on remand to compel arbitration because we leave it to the court to first determine whether and how to exercise the discretion afforded by section 1281.2, subdivision (c). FACTS Plaintiff, a resident of the State of Washington, is the widow of a wealthy businessman who left her as trustee or successor trustee to various trusts when he died in 2010. Among the assets in one of the trusts were shares of stock which plaintiff sold for

1 Elizabeth Wong is a party to this action both in her individual capacity and in her capacity as trustee of a certain trust. Because the distinction is not relevant for purposes of this appeal, we refer to her in both capacities as plaintiff.

2 All further statutory references are to the Code of Civil Procedure unless otherwise stated. 2 roughly $70 million in 2016. The ex-wife of plaintiff’s deceased husband believed she was entitled to a portion of the stock proceeds pursuant to a stipulated divorce judgment, so she filed a request for order in a pre-existing Orange County Superior Court dissolution matter (the family law matter). Sitzer, a longtime attorney of plaintiff’s deceased husband, represented plaintiff in the family law matter. When Sitzer formed SLG, his firm took over representation of plaintiff in that case, along with the assistance of various co-counsel. The family law matter was heavily litigated over the course of more than two years. In December 2019, the trial court issued a 117-page final statement of decision. It found against plaintiff on the underlying issues and issued a $2.5 million attorney fees award as a sanction against her, pursuant to Family Code section 271, based on litigation conduct on her side.3 In late January 2020, plaintiff terminated Sitzer and SLG and hired other counsel to represent her in what remained of the family law matter. A few weeks later, plaintiff received invoices claiming she still owed SLG approximately $1.38 million in fees.

3 The trial court described the circumstances as “a [h]allmark [c]ase for §271 [s]anctions[.]” (Bold omitted.) It summarized its findings as follows: “Elizabeth and/or her longstanding attorneys have engaged in a culpable, deliberate, and focused campaign using economic warfare and the legal system that (1) frustrated the policy of the law to promote settlement of what should have been a straightforward post judgment RFO enforcement proceeding; and in doing so (2) unnecessarily increased the costs of litigation and caused undue delays to an elderly party. [¶] . . . This conclusion is based on evidence of sanctionable conduct in four categories identified by the court: (1) pursuing a scorched earth strategy using every unrelated legal theory imaginable; (2) refusals to cooperate, obstreperous conduct and dilatory actions; (3) repeated failures to adhere to court deadlines and orders; and (4) a consistent lack of civility and professional courtesy created a war-like mentality preventing an early resolution of the relevant issues.” 3 Having not received payment on the outstanding balance, SLG filed suit against plaintiff, as an individual and as trustee of various trusts, in Los Angeles Superior Court in March 2020. SLG sought both a monetary award and imposition of an equitable lien on certain Los Angeles County real property assets owned by plaintiff and/or the trusts. Its contractual claims were based on an alleged 2007 engagement agreement between one of the trusts and Sitzer. After amending the complaint to specify the names of certain doe defendants, and before plaintiff filed a responsive pleading, SLG dismissed the case without prejudice. Following SLG’s voluntary dismissal of the Los Angeles Superior Court case, SLG filed a demand for arbitration against plaintiff and 12 other parties concerning the fees dispute. The demand, filed with the American Arbitration Association (AAA), attached a copy of an arbitration provision purportedly included in a 2010 SLG engagement agreement and specified the parties were obligated “to arbitrate this dispute as direct clients of [SLG], their agents or alter-egos, third-party beneficiaries, or otherwise, based on general equitable grounds.” SLG subsequently filed two amendments to the arbitration demand which modified the responding parties and added substantive allegations. The responding parties answered the arbitration demand at the end of June 2020. Everyone except plaintiff objected to the AAA’s jurisdiction over the dispute. Plaintiff, in her individual capacity and as trustee for the named trusts, “consent[ed] to the jurisdiction of the AAA over th[e] dispute, but without waiving or limiting her right to seek interim relief in court.”

4 On the same day she filed her answer, plaintiff filed a counterclaim against SLG in the arbitration proceeding. It alleged breach of fiduciary duties, professional negligence, fraud, negligent misrepresentation, unfair business practices, unjust enrichment, conversion, and slander, among other claims. Plaintiff sought damages, injunctive relief and declaratory relief. Included in the declaratory relief allegations, the counterclaim stated: “Elizabeth further contends that she is not bound by any valid and enforceable written, oral or implied contracts with SLG.” A week or so later, at the beginning of July 2020, plaintiff filed a complaint against Sitzer and SLG in Orange County Superior Court (the court action).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pinnacle Museum Tower Ass'n v. Pinnacle Market Development (US), LLC
282 P.3d 1217 (California Supreme Court, 2012)
Avery v. Integrated Healthcare Holdings CA4/3
218 Cal. App. 4th 50 (California Court of Appeal, 2013)
Warfield v. Summerville Senior Living, Inc.
69 Cal. Rptr. 3d 783 (California Court of Appeal, 2007)
City of Hope v. Bryan Cave
126 Cal. Rptr. 2d 283 (California Court of Appeal, 2002)
Toal v. Tardif
178 Cal. App. 4th 1208 (California Court of Appeal, 2009)
ASP Properties Group, L.P. v. Fard, Inc.
35 Cal. Rptr. 3d 343 (California Court of Appeal, 2005)
Brodke v. Alphatec Spine Inc.
73 Cal. Rptr. 3d 554 (California Court of Appeal, 2008)
Bolter v. Superior Court
104 Cal. Rptr. 2d 888 (California Court of Appeal, 2001)
Boys Club of San Fernando Valley, Inc. v. Fidelity & Deposit Co.
6 Cal. App. 4th 1266 (California Court of Appeal, 1992)
Saint Agnes Medical Center v. PacifiCare of California
82 P.3d 727 (California Supreme Court, 2003)
Wagner Construction Co. v. Pacific Mechanical Corp.
157 P.3d 1029 (California Supreme Court, 2007)
Serafin v. Balco Properties Ltd., LLC
235 Cal. App. 4th 165 (California Court of Appeal, 2015)
Long v. Provide Commerce, Inc.
245 Cal. App. 4th 855 (California Court of Appeal, 2016)
Engalla v. Permanente Medical Group, Inc.
938 P.2d 903 (California Supreme Court, 1997)
DeLeon v. Verizon Wireless, LLC
207 Cal. App. 4th 800 (California Court of Appeal, 2012)
Daniels v. Sunrise Senior Living, Inc.
212 Cal. App. 4th 674 (California Court of Appeal, 2013)
Acquire II, Ltd. v. Colton Real Estate Group
213 Cal. App. 4th 959 (California Court of Appeal, 2013)
Douglass v. Serenivision, Inc.
229 Cal. Rptr. 3d 54 (California Court of Appeals, 5th District, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Wong v. Sitzer CA4/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wong-v-sitzer-ca43-calctapp-2023.