Concierge Auctions, LLC v. Marterie

Background

Concierge Auctions filed an action asking the federal court to compel arbitration. Although the court did not grant Concierge Auctions the relief it sought, the court stated that the petition had merit. The court did not compel arbitration because the Sonoma County Superior Court had already done so after the federal court delayed consideration to give that court an opportunity to rule.

Concierge Auctions later asked the federal court to enjoin, or block, the superior court’s decision to stay the arbitration. The federal court denied that request as a matter of discretion, mainly because the issue could be considered by the California Court of Appeal in a writ action. The court stated that Concierge Auctions had presented a strong legal argument that the superior court lacked authority to stay the arbitration.

Attorney’s-fee motion

The Marteries moved for attorney’s fees, apparently claiming that they were the prevailing parties. The court concluded that neither side was the prevailing party in the federal action under California Civil Code section 1717 or any other meaning of that term. The court also stated that Concierge Auctions’ decision to seek relief in federal court was not unreasonable from a procedural standpoint given the unusual circumstances of the three-party dispute.

Disposition

Judge Vince Chhabria denied the Marteries’ motion for attorney’s fees. The order did not award fees to either side.