Nemecek & Cole v. Horn
208 Cal. App. 4th 641
Cal. Ct. App.2012Background
- Horn retained to represent Hoffmans in lot-line dispute; Hoffmans obtained adverse verdict on fee and fraud claims, resulting in a net zero judgment after offsets.
- Nemecek & Cole represented Horn in the matter against the Hoffmans; later arbitration was demanded over Nemecek’s fees.
- Arbitrator Schiavelli disclosed to the parties; Horn sought additional disclosure of matters involving Nemecek; JAMS claimed no further disclosures were required.
- Arbitrator’s five-day evidentiary hearing produced an award favoring Nemecek on fees; Horn elected to pursue vacatur of the award.
- Horn’s investigation uncovered undisclosed relationships between the arbitrator and Nemecek’s personnel and witnesses; Horn moved to vacate and Nemecek sought to confirm.
- Trial court denied vacatur and confirmed the award; Horn appealed, challenging disclosure failures and attorney-fee award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether undisclosed connections void the arbitration award | Horn | Nemecek | No basis to vacate; no disqualifying disclosures required |
| Whether attorney fees awarded were proper | Horn | Nemecek | Fees affirmed; market-rate reasonable value supported by record |
| Whether alleged ex parte communication affected validity | Horn | Nemecek | No proven ex parte communication; speculation rejected |
Key Cases Cited
- Moncharsh v. Heily & Blase, 3 Cal.4th 1 (Cal. 1992) (comprehensive arbitration framework; standards for disclosure and impartiality)
- Haworth v. Superior Court, 50 Cal.4th 372 (Cal. 2010) (de novo review of trial court on arbitration confirmation)
- Koch, 162 Cal.App.4th 720 (Cal. App. 2008) (attorney affiliations and minor relationships need not be disclosed)
- PLCM Group, Inc. v. Drexler, 22 Cal.4th 1084 (Cal. 2000) (reasonableness of in-house counsel fees; market value standard)
- Vella v. Hudgins, 151 Cal.App.3d 515 (Cal. App. 1984) (fees may be awarded based on market value, not actual incurred costs)
