Hernandez v. KN Petroleum, LLC

Background

Gerardo Hernandez, who uses a wheelchair and is substantially limited in his ability to walk, brought an action seeking removal of access barriers at a gas station identified in the opinion as the Facility. The action includes claims under Title III of the Americans with Disabilities Act. The Northern District’s General Order 56 applies to such access cases and establishes procedures intended to encourage early settlement.

The defendants repeatedly failed to comply with General Order 56 and related court orders. Hernandez had to file an administrative motion to require cooperation with a joint site inspection. After that inspection occurred on October 3, 2024, the defendants failed to provide initial disclosures and failed to attend a settlement meeting scheduled for December 2, 2024. The defendants also did not timely oppose Hernandez’s sanctions motion, did not properly request an extension of time, and failed to appear at the March 6, 2025 hearing despite an order requiring their client representatives to attend. Defense counsel Gregory J. Antone also failed to appear.

Sanctions ruling

Hernandez sought terminating sanctions or, alternatively, monetary sanctions under Federal Rule of Civil Procedure 37. Terminating sanctions are case-ending sanctions. The court declined to impose them, but found that the defendants’ repeated violations of General Order 56 and multiple court orders warranted monetary sanctions.

The court approved the requested attorney-fee rates for attorney Tanya Moore and paralegal Whitney Law and found the time spent reasonable. It awarded $9,453.50 in sanctions against KN Petroleum LLC and KN Stations LLC, jointly and severally. The amount covered work on the sanctions motion and reply. The sanctions were payable within 21 days of the order.

Additional orders

The court required the defendants to participate in a General Order 56 settlement meeting within 28 days. It extended the deadline for that meeting to 28 days from the order and extended the deadline for filing either a notice of settlement or a notice of need for mediation and certification of counsel to 35 days from the order. The court warned that further noncompliance could result in terminating sanctions.

The court also referred Antone to the Northern District’s Standing Committee on Professional Conduct for further investigation under Civil Local Rule 11-6(e). The referral was based on the court’s concern, after considering Antone’s representations about mental and physical conditions and his failure to appear, that he might be unable to represent his clients competently. The court warned that similar conduct could be reported to the State Bar of California. Antone was ordered to serve his clients with the order, the defendants’ opposition to the sanctions motion, and the order setting the hearing, then file a certificate of service by March 13, 2025.