IKOLA, J. —
A "sharp practice" is defined as a "dealing in which advantage is taken or sought unscrupulously." (Webster's 3d New Internat. Dict. (2002) p. 2088.) This is an appeal borne of sharp practices.
Defendant Professional Community Management, Inc. (PCM), unilaterally orchestrated the issuance of an appealable order by: (1) applying ex parte, a mere 11 days before trial, for an order shortening time to hear its motion to compel arbitration; (2) voluntarily submitting a proposed order to the trial court that not only reflected the court's denial of the ex parte application — the only ruling reflected in the trial court's own minute order — but also included a denial of the motion on the merits; and (3) promptly appealing from that order, which then stayed the scheduled trial.
We conclude PCM engaged in this course of conduct because, as respondent Francisco Diaz argued below, it anticipated the court would deny its motion to compel arbitration in any event, and it sought to obtain an appealable ruling issued before the trial commenced. PCM could then spin that ruling into a vehicle for seeking pretrial appellate review of the analysis underlying the court's order denying its related motion for summary judgment. Thus, PCM carefully tailored the order it proposed the court issue, incorporating what it characterized as the trial court's reasons for rejecting the summary judgment motion, and excluding any mention of issues that might distract from that analysis.
PCM has continued its aggressive strategy on appeal, contending Diaz is precluded from arguing that PCM had waived its right to compel arbitration — the most obvious defense when such a motion is filed on the eve of trial. According to PCM, Diaz cannot make that argument because the trial court's premature denial of the motion to compel (at PCM's request) meant Diaz never argued waiver in an opposition to the motion, and because the order PCM drafted did not reflect the trial court had relied on it as a basis for denying the motion. Instead, PCM claims Diaz is relegated to defending the court's ruling based solely on the analysis PCM crafted in its proposed order, and that we must assess the propriety of that order based solely on that analysis as well.
There are several reasons why PCM cannot succeed in this appeal. But the most significant is the fact PCM invited the trial court's alleged error when it proposed the court issue the very ruling it now challenges on appeal. By doing that, PCM won the battle — it got the court to issue the appealable order
We conclude PCM and its counsel acted in bad faith, generating an appealable order they knew the trial court had not intended to issue at the ex parte hearing, for the purpose of obtaining a delay of trial. Any confusion about the scope of the court's intended ex parte ruling was resolved by the court's own minute order, issued in the wake of the hearing. Further, PCM's claim that it had prepared its proposed order in compliance with California Rules of Court, rule 3.1312, is specious, and we note the format and content of the proposed order appears deliberately designed to obscure its inclusion of the appealable provision.
Alternatively, we conclude the order denying PCM's motion to compel arbitration should also be affirmed on the merits, based on our determination that PCM has waived its right to compel arbitration. We acknowledge that as a result of PCM's machinations, the court made no such express ruling, but we invoke our authority under Code of Civil Procedure section 909 to find that PCM has acted in bad faith in connection with the motion to compel arbitration.
Finally, we also impose monetary sanctions against PCM and its counsel, E. Sean McLoughlin and William A. Meyers, for bringing a frivolous appeal. In accordance with California Rules of Court, rule 8.276, we notified PCM and its counsel that we were considering sanctions, and invited their response to specified concerns. While they did provide a satisfactory explanation for two of the actions we questioned, they also effectively conceded engaging in the conduct we were most disturbed by: i.e., they voluntarily
Diaz was employed as a tree trimmer by PCM for many years. He filed his complaint against it in October 2014, stating various causes of action arising out of PCM's alleged failure to reasonably accommodate the workplace restrictions imposed by his doctor, its alleged retaliation, and its alleged wrongful termination of his employment. PCM answered the complaint in December 2014, denying the allegations and pleading 24 affirmative defenses. The 24th affirmative defense alleged that Diaz's complaint "and each cause of action, is barred by [his] failure to exhaust contractual remedies available to him, including, but not limited to, the grievance and arbitration procedure under the collective bargaining agreement between [PCM] and [Diaz's] collective bargaining representative."
A trial date was set for March 21, 2016. But in February 2016, the court granted PCM's ex parte application to continue the trial date, selecting August 15, 2016, as the new trial date. The court's order reflected that the discovery cutoff and other trial-related deadlines were established in accordance with the August 15 trial date.
In April 2016 — a year and a half after the case was filed, and one month after the original trial date — PCM moved for summary judgment. It argued it was entitled to judgment as a matter of law based on the grievance and arbitration procedure contained in the collective bargaining agreement (CBA) it had entered into with Diaz's union. According to PCM, that grievance and arbitration procedure — alleged as the basis of its 24th affirmative defense — was the mandatory and exclusive remedy for addressing the claims alleged in Diaz's complaint, and Diaz's failure to exhaust that remedy prevented him from proceeding on those claims in court. PCM also argued that any attempt by Diaz to challenge the validity of the CBA provisions would be preempted
On August 2, 2016, the court denied the motion for summary judgment. Although the court's analysis was lengthy, it summarized its grounds for denying summary judgment as "1) there is a question of fact whether [the CBA's] arbitration proceedings are fair and 2) [PCM] has not shown that ... any ... term of the [C]BA has to be interpreted in order to deal with [Diaz's] FEHA claim. Therefore, [federal labor law] pre-emption has not occurred."
On August 3, the day after the court issued its summary judgment ruling, PCM filed a motion to compel arbitration pursuant to the terms of the CBA. The earliest date regularly available for a hearing on that motion was September 1, 2016, approximately two weeks after the August 15 trial date. Consequently, PCM also gave notice that it would apply to the court, ex parte, for an order either shortening time to hear the motion prior to trial, or continuing the trial to a date after the motion was heard and decided on regular notice. In its ex parte application, PCM represented that the facts and law supporting its motion to compel arbitration "are identical to those raised in connection with [its] Motion for Summary Judgment."
Diaz filed written opposition to the ex parte application, characterizing it as "nothing short of a desperate ploy to delay [the trial]." He contended PCM had not shown good cause for an order shortening time, as it could have reserved a court date for a motion to compel arbitration much earlier, if it had any genuine interest in arbitrating. Diaz also asserted that PCM knew its last-minute motion to compel arbitration would be denied on the merits, and thus the ex parte application was merely an effort to obtain that appealable order before the trial commenced.
Diaz argued that not only should PCM's motion to compel arbitration be denied for the same reasons the trial court had just denied its motion for summary judgment, it should also be denied because PCM had waived its right to compel arbitration by waiting so long to assert it: "Defendant has had 605 days to move to compel, ha[s] responded to various modes of written discovery going beyond arbitration issues, has produced witnesses for deposition, has deposed Mr. Diaz, has filed several ex parte applications, and has filed a motion for summary judgment which the Court recently denied. All the while it has been sitting on its hands as it relates to filing a motion to compel arbitration. Guided by the Martinez [v. Scott Specialty Gases, Inc. (2000) 83 Cal.App.4th 1236 [100 Cal.Rptr.2d 403]] opinion, Defendant has waived its right to arbitration."
The court heard PCM's ex parte application on the morning of August 4, the day after the motion to compel arbitration was filed, and 11 days before the trial was scheduled to commence. Although we have no transcript of the hearing, the court's minute order reflects that it received and reviewed Diaz's written opposition to the ex parte application and heard oral argument. We consequently infer at least part of that oral argument focused on the content of Diaz's opposition; i.e., his contention that PCM's motion to compel was patently without merit, and PCM was seeking ex parte relief for the sole purpose of generating the opportunity for a pretrial appeal from the inevitable denial of that motion.
PCM's counsel, Meyers, claims he understood the trial court's statements during the hearing to express not only its denial of the ex parte application, but also a denial "in substance [of] PCM's Motion to Compel." (Italics added.) However, Meyers does not specify what those statements were, nor does he claim the court stated explicitly that the motion to compel arbitration was denied in fact.
The court issued a minute order following the ex parte hearing. That minute order stated only that the court had denied the ex parte application in its entirety, refusing either to shorten time for a hearing on PCM's motion, or to delay the trial so that the motion could be heard on regular notice before trial commenced. The court's minute order reflects no ruling on the motion to compel arbitration itself, and it does not direct any party to prepare and submit a proposed order.
According to Meyers, he telephoned his partner and cocounsel, McLoughlin, immediately after the ex parte hearing, and informed him of Meyers's "understanding that the court had denied in substance PCM's Motion to Compel ...." The two attorneys then decided McLoughlin would immediately prepare a proposed order reflecting an outright denial of PCM's motion to compel arbitration, and make arrangements for the proposed order to be submitted for "rush filing" and to personally serve on Diaz's counsel that same day.
PCM admits its focus was on obtaining an order from which it could take an immediate appeal: "The purpose of the proposed order was to confirm the trial court's rulings made that morning, particularly the denial on the merits
The order drafted by PCM's counsel was captioned "PROPOSED ORDER RE: DEFENDANT PCM'S EX PARTE APPLICATION FOR ORDER SHORTENING TIME ON MOTION TO COMPEL ARBITRATION." The caption did not mention the document included any ruling on the motion to compel arbitration. The text of the proposed order then stated, in its entirety:
"The Court, having considered the ex parte application of Defendant PROFESSIONAL COMMUNITY MANAGEMENT, INC. (`PCM') for an Order shortening time for hearing on PCM's Motion to Compel Arbitration and to Stay Action Pending Arbitration (`Motion to Compel') or, alternatively, for a brief continuance of the August 15, 2016 trial date to hear PCM's Motion to Compel on regular notice; Plaintiff's opposition papers; all of the Court's records and files, including the Motion to Compel; and the arguments of counsel; it is hereby Ordered as follows:
"The Court finds that its August 2, 2016 order denying PCM's motion for summary judgment determined that Plaintiffs claims in this action are not covered by the grievance and arbitration provision of the CBA between PCM and Plaintiffs Union, which was attached as Exhibit 1 to PCM's Motion to Compel. The Court further finds that the Motion to Compel is predicated on the same issue, i.e., that Plaintiffs claims are covered by the grievance and arbitration provision of the CBA, and that PCM is therefore not entitled to compel Plaintiffs claims into arbitration. Accordingly, the Motion to Compel and PCM's ex parte request to hear its Motion to Compel, whether on shortened notice or regular notice, are DENIED.
"IT IS SO ORDERED."
After PCM's proposed order was submitted to the court electronically on the afternoon of the ex parte hearing date, McLoughlin directed his secretary
McLoughlin also personally checked the court's register of actions regularly in an effort to ascertain whether the court had signed it. Finally, on the morning of August 11, PCM's counsel learned the trial court had signed its order, and the order was made available online, in the court's electronic register of actions. Despite that delay, the order itself reflects it was both signed and filed on August 4 (the ex parte hearing date).
Even after signing PCM's proposed order, reflecting the outright denial of its motion to compel arbitration, the court did not cancel the September 1 hearing date originally scheduled for that motion. Instead, the hearing remained on the court's calendar until that date, when the court's minute order reflects it was taken off calendar "per Moving Party's request."
PCM filed its notice of appeal on August 12, 2016, the last court day before the trial was scheduled to commence. On Monday, August 15, the day of trial, PCM filed a notice of a stay of all trial court proceedings, pending appeal.
In November 2016, before the parties had filed any briefs on appeal, Diaz filed a motion to dismiss the appeal. He argued the appeal was a sham because no motion to compel arbitration had been noticed for the date of the trial court's order purportedly denying it, and he asserted PCM had "pulled a fast one on both [him] and the trial court in order to delay trial."
PCM opposed the motion to dismiss, arguing it must be denied because the order appealed from — however unusual its timing — clearly reflected the court's outright denial of its motion to compel arbitration, and consequently it was an immediately appealable ruling. PCM also asserted that pursuant to California Rules of Court, rule 3.1312(b), Diaz was deemed to have approved the court's order denying the motion to compel because he failed to assert any objection to it within five days of its service upon him. PCM also argued that Diaz could not have been prejudiced by the court's instant ruling on the motion to compel because (1) that ruling favored him, and (2) he had previously been given a full and fair opportunity to raise any arguments he had in connection with PCM's earlier motion for summary judgment. Finally, PCM argued its appeal was not frivolous, and denied it had been taken for purposes of delay.
We issued an order denying the motion to dismiss the appeal, and expressing our intention to expedite the resolution of the appeal.
"1. Why PCM proposed the trial court sign an order denying, rather than granting, its own ex parte application for an order shortening time for hearing on its previously filed motion to compel arbitration, or alternatively for an order continuing the trial date.
"2. Why PCM further proposed the trial court sign an order denying its motion to compel arbitration, when that motion was not set for hearing until four weeks later.
"3. Why PCM filed an appeal from the order it had proposed the trial court sign.
"4. Why PCM waited until August 12, 2016, eight days after the court signed and filed its proposed order, and one court day before trial in this case was scheduled to commence, before filing its notice of appeal from the order it had proposed the court sign.
"5. Why PCM first argued, in opposition to Diaz's motion to dismiss this appeal, that Diaz was not prejudiced by being denied the opportunity to formally oppose its motion to compel arbitration in the trial court, claiming he had already been given a full opportunity to develop his assertion that PCM had waived its right to arbitrate, but then argued in its reply brief on appeal that Diaz was foreclosed from relying on waiver as a basis for affirming the challenged order because PCM's waiver of the right to arbitrate was not addressed in the order PCM had proposed the court issue.
"6. Why PCM's counsel, William A. Meyers, represented to this court in a November 29, 2016 declaration under penalty of perjury, that the order PCM had appealed from — which PCM previously acknowledged in its notice of appeal had been entered on August 4, 2016 — `was signed by the trial court seven days later, on August 11, 2016.'
"7. Why PCM represented in its opening brief that the August 4, 2016 order it appealed from `was signed and filed by the trial court six days later, on August 10, 2016.'"
Our second order requested both parties to provide us with supplemental briefing addressing the following points:
"1. Whether the trial court abused its discretion by denying PCM's August 4, 2016 ex parte application for an order shortening time for hearing on its motion to compel arbitration, or alternatively for a continuance of the trial date.
"2. Whether the trial court's order denying PCM's motion to compel arbitration was invited error.
"3. Whether PCM is legally aggrieved by the trial court's issuance of an order PCM proposed the court issue.
"4. Whether PCM's proposal that the trial court deny its motion to compel arbitration, before Diaz had any opportunity to file opposition and without waiting for the scheduled hearing date, amounted to a waiver or abandonment of that motion.
"5. Whether this court can make a factual finding, pursuant to Code of Civil Procedure section 909, on the issue of whether PCM has waived whatever right it may have had to compel arbitration of the claims asserted by Diaz in this case."
In this appeal, PCM claims the trial court erred when it denied PCM's motion to compel arbitration based on the same analysis the court had employed in denying PCM's motion for summary judgment. But the order denying the motion to compel arbitration on that basis was proposed by PCM itself, following an ex parte hearing at which the sole issue before the court had been whether it should shorten time to hear the motion to compel, or alternatively, continue the trial date to allow that motion to be heard on regular notice.
PCM contends it prepared and submitted the proposed order because its counsel believed the trial court had ruled on the motion to compel itself, and not just on the ex parte application, during that hearing. It claims the proposed order was intended to document the court's ruling.
Additionally, the court's conduct following the ex parte hearing does not support the inference that it intended to deny PCM's `motion to compel
Nonetheless, PCM claims, in conclusory fashion, that its counsel, Meyers, believed the court was denying its motion to compel "in substance" at the ex parte hearing, based on statements the court made during that hearing. But in his declaration, Meyers fails to identify any specific statement the court made during the hearing to give him that impression; nor does his cocounsel, McLoughlin, identify what statements (if any) Meyers related to him in the immediate wake of the hearing that convinced him that Meyers had correctly interpreted the court's intent. Instead, Meyers merely tells us that the court made statements at the hearing "to the effect that" PCM's motion to compel "re-argued that [its] claims are subject to the ... arbitration provision," which was an assertion that had already been rejected in connection with the summary judgment motion.
It is not at all surprising the court would have commented about the apparent lack of merit of PCM's motion to compel arbitration during the ex parte hearing because Diaz's written opposition had focused on that issue. The core of Diaz's argument was that PCM's motion to compel arbitration would inevitably be denied, and thus allowing the motion to be heard before trial would accomplish nothing more than to give PCM the opportunity to derail the scheduled trial date with an immediate appeal. In explaining its decision to deny the ex parte application, it would not be surprising that the court expressed some agreement with that argument.
In any event, Meyers does not claim the court specifically stated, "I am denying your motion today," or even words to that effect. And significantly, Meyers does not claim to have expressed any objection when he supposedly realized the court was doing that very remarkable — and wholly objectionable — thing. Stated simply, if PCM were genuinely interested in persuading the court to grant its motion to compel arbitration, we presume its counsel would have vigorously protested the court's abrupt decision to deny that motion less than 24 hours after it had been filed.
But instead of protesting, both Meyers and McLoughlin suggest their only reaction to the court's abrupt and premature denial of PCM's noticed motion was an attempt to formalize that ruling. That, more than anything else, suggests Diaz had correctly assessed PCM's motive in pursuing the ex parte application — i.e., it was the possibility of derailing the trial, rather than a sudden desire to arbitrate, that was the true motivation underlying PCM's last-minute motion to compel arbitration.
Rule 3.1312 specifies that "the party prevailing on any motion must, within five days of the ruling, serve ... a proposed order for approval as conforming to the court's order." (Rule 3.1312(a), italics added.) It is only after the expiration of an additional five days within which the opposing party may state any opposition to the proposed ruling, that the prevailing party "must ... promptly transmit the proposed order to the court...." (Rule 3.1312(b).)
The content and format of the proposed order also undermines PCM's contention it drafted and submitted the order as part of a good faith effort to formalize the court's intended ruling. If that had been the case, we presume PCM would have drafted it in a way to make clear that the order encompassed what its counsel believed were the court's two distinct rulings on two separate matters. But if anything, this proposed order did the opposite. Rather than identify two rulings in its caption, PCM's proposed order identified only the expected one: "PROPOSED ORDER RE: DEFENDANT PCM'S EX PARTE APPLICATION FOR AN ORDER SHORTENING TIME ON MOTION TO COMPEL ARBITRATION." And rather than setting out the two distinct rulings separately in the body of the proposed order, PCM buries the key ruling — the court's supposed denial of the motion to compel — at the end
Given the obscure placement of the language granting the motion to compel within the proposed order, we are not surprised by the assertion of Diaz's counsel that he failed to apprehend it while immersed in his final trial preparation.
Finally, the very careful language employed by PCM's counsel in their declarations describing the court's ruling is also damning. Counsel's assertion that they believed the court had denied PCM's motion to compel "in substance" during the ex parte hearing amounts to what in pleading terms used to be referred to as a "negative pregnant." (See Armer v. Dorton (1942) 50 Cal.App.2d 413, 415 [123 P.2d 94] [explaining why the specificity of defendant's denial that plaintiff suffered damages in a specific amount operates as an admission that damages were suffered in some other amount].) What Meyer and McLoughlin appear to concede by omission is that they did not believe the court had denied their motion to compel in fact. In light of all the surrounding circumstances, we agree.
Although the record is clear that the court did not intend to rule on PCM's motion to compel arbitration at the ex parte hearing, and that PCM and its counsel must have recognized the court did not, we cannot conclude with certainty that the trial court did not fully understand the content of PCM's proposed order by the time it signed that order. We believe that to be unlikely, not only for the reasons we have already explained, but also because the court
Nonetheless, we are loath to conclude the court was actually tricked into signing an order it had not intended to issue, and must therefore acknowledge the possibility the court made a conscious decision to go ahead and deny the motion outright, precisely because PCM was proposing that it do so.
But even if we believed the court was not actually misled by PCM's proposed order, it would not change our analysis significantly. We would nonetheless conclude PCM had consented to that order, and was consequently not aggrieved by it.
Because PCM proposed the order denying its motion to compel arbitration — following the court's initial ruling that merely denied its ex parte application — it consented to that order. And having consented to the order it proposed, PCM cannot claim to be aggrieved by it.
Alternatively, on the merits of PCM's motion to compel, we conclude PCM has waived its right to compel arbitration. We thus find no error in the court's order denying the motion.
As Diaz has made clear, both in his opposition to PCM's ex parte application and in his brief on appeal, his opposition to the motion would have prominently featured the contention that PCM had waived its right to
In his motion to dismiss the appeal, Diaz also asserted it would be a denial of due process if he were required to defend the court's order on appeal, without the benefit of the waiver argument he would have developed in his opposition to the motion. PCM countered that latter assertion by pointing out that Diaz actually had raised the issue of waiver below, both in opposition to its motion for summary judgment, and in opposition to its ex parte application.
Nonetheless, after we denied Diaz's motion to dismiss the appeal, PCM took a different tack in its briefing on the merits. It argued that Diaz could not rely on waiver as a basis for preserving his trial court victory. According to PCM, because the record below did not show the trial court had actually made a finding in Diaz's favor on that issue when it denied the motion to compel, we could not uphold the ruling on that basis. Thus, PCM characterized Diaz's "waiver argument [as merely] an attempt to distract the Court from the principal issue on appeal, i.e., the legal question of whether [Diaz's] claims fall within the ambit of the ... mandatory grievance and arbitration provision."
And to be clear, when PCM claimed the court had never addressed Diaz's waiver argument during the truncated proceedings below — and thus that we were foreclosed from considering it in the first instance — it meant the issue would never be considered. PCM was asking us to not only reverse the trial court's order denying its motion to compel, but also to "direct the trial court to enter a new order granting the motion" (italics added), based solely on an evaluation of whether Diaz's claims "fall within the ambit of the ... mandatory grievance and arbitration provision."
We cannot do that. As Diaz argued in his motion to dismiss the appeal, it would be patently unfair to deny him the opportunity to assert waiver as a defense to the motion to compel arbitration, simply because PCM successfully induced the trial court to issue a premature order.
In this case, however, we will not remand, because doing so would only serve to advance PCM's goal of delaying trial. Instead, we will invoke section 909 to make a factual finding on appeal.
Section 909 provides: "In all cases where trial by jury is not a matter of right or where trial by jury has been waived, the reviewing court may make factual determinations contrary to or in addition to those made by the trial court. The factual determinations may be based on the evidence adduced before the trial court either with or without the taking of evidence by the reviewing court. The reviewing court may ... take additional evidence of or concerning facts occurring at any time prior to the decision of the appeal.... This section shall be liberally construed to the end among others that, where feasible, causes may be finally disposed of by a single appeal and without
In response to our request for supplemental briefing on the propriety of making factual findings under section 909 in connection with this appeal, PCM argued it would be inappropriate because section 909 applies only in "cases where trial by jury is not a matter of right or where trial by jury has been waived." (§ 909.) PCM points out that if Diaz's complaint against it proceeds to trial (rather than to arbitration), a trial by jury would be a matter of right and that right has not yet been waived. And because a jury trial on Diaz's complaint remains theoretically possible, this case is excluded from the scope of allowable appellate fact finding under section 909.
In the unusual circumstances of this appeal, we conclude it is appropriate for us to make a factual finding relevant to the merits of PCM's appeal — i.e., that PCM has acted in bad faith in connection with the motion to compel arbitration. Indeed, we have already reached that conclusion in analyzing PCM's efforts to obtain the appealable order that landed them in our court, and by invoking our authority under section 909, we are merely acknowledging that our finding also affects the merits of the motion to compel arbitration.
In addition to the facts we have already discussed, our conclusion is supported by the fact PCM never made any effort to compel this case into arbitration until the eve of trial. It is undisputed that PCM was at all times aware of the grievance and arbitration provision, and had pleaded its existence as an affirmative defense. However, PCM chose to rely upon that provision solely as a basis for seeking summary judgment, arguing the grievance and arbitration process operated as a complete bar to Diaz maintaining his complaint in any forum. That motion did not reflect any desire to arbitrate.
When the court denied the ex parte application, PCM's response was to propose the court immediately deny its motion to compel arbitration out-right — again, not the response of a party that actually wants to arbitrate. But as we have already explained, PCM's right to appeal from that order would give it, not only, the unilateral ability to delay the trial — the very relief the court had denied it at the ex parte hearing — but also the opportunity to, in effect, reargue the merits of its summary judgment motion in a pretrial appeal. These additional facts also support our conclusion that it was those goals — rather than any genuine desire to compel Diaz into arbitration — which were the true motivation for PCM's motion to compel.
Based on that finding, combined with the other undisputed procedural facts in this case — i.e., PCM's extreme delay in seeking arbitration, its participation in discovery and its pursuit of summary judgment in the trial court — we conclude as a matter of law that PCM has waived whatever right it had to compel arbitration of Diaz's complaint.
PCM's conduct demonstrates all of those bases for finding waiver. In addition to its bad faith assertion of the motion to compel arbitration, PCM has participated in discovery and even moved for summary judgment in the trial court.
Based on the foregoing, we conclude PCM has waived its right to compel arbitration of Diaz's claims, as a matter of law.
By engaging in this conduct, PCM made clear it was not only consenting to the order, it was promoting it. Under those circumstances, appealing from the order was frivolous. We conclude PCM engaged in this bad faith conduct for an improper motive — i.e., delaying the pending trial, and obtaining immediate appellate review of the trial court's order denying its motion for summary judgment — not because it genuinely wanted to arbitrate.
Based on these findings, we impose sanctions against both PCM and its counsel. The damages suffered by Diaz resulting from this frivolous appeal are the reasonable value of counsel's services in preparing for the aborted trial, to the extent preparation for trial must necessarily be repeated, and the reasonable value of counsel's services in defending this appeal. Excluded from this award are pretrial services that need not be repeated, e.g., the preparation of motions in limine, trial briefs and the like. The damages suffered by this court for processing this appeal are set at $8,500. (See In re Marriage of Gong & Kwong (2008) 163 Cal.App.4th 510, 520 [77 Cal.Rptr.3d 540] [explaining "the cost of processing an appeal that results in an opinion by the court to be approximately $8,500"].)
The order denying PCM's motion to compel arbitration is affirmed and the case is remanded to the trial court. As sanctions for bringing this frivolous appeal, PCM and its counsel, Hill Farrer & Burrill LLP, E. Sean McLoughlin and William A. Meyers, are ordered, jointly and severally, to pay the following amounts: to the clerk of this court, $8,500, no later than 15 days after the remittitur is issued; to Diaz, an amount equal to the reasonable value of services performed by his attorney in preparing for the trial that was scheduled to commence on August 15, 2016, and in responding to this appeal, but not to include pretrial services which need not be repeated. The trial court is instructed to set a hearing for the determination of that amount and to determine the amount of the sanction following remand.
The clerk of the court is directed to deposit the sums paid in the general fund. Attorneys E. Sean McLoughlin and William A. Meyers and the clerk of this court are each ordered to forward a copy of this opinion to the State Bar
O'Leary, P. J., and Aronson, J., concurred.
In this case, however, reversal of the order on the basis of improper notice would also be inappropriate because PCM — the party challenging the order — clearly consented to the timing of the court's ruling. A judgment or order that would be void in the abstract — because the court acted in excess of its jurisdiction when issuing it — is nonetheless immune from challenge if consented to. "When, as here, the court has jurisdiction of the subject, a party who seeks or consents to action beyond the court's power as defined by statute or decisional rule may be estopped to complain of the ensuing action in excess of jurisdiction." (In re Griffin (1967) 67 Cal.2d 343, 347 [62 Cal.Rptr. 1, 431 P.2d 625].) It is only the court's fundamental lack of jurisdiction — i.e., "an entire absence of power to hear or determine the case, an absence of authority over the subject matter or the parties" (Abelleira v. District Court of Appeal (1941) 17 Cal.2d 280, 288 [109 P.2d 942]) — which cannot be remedied by consent.