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Nemecek & Cole v. Horn
208 Cal. App. 4th 641
Cal. Ct. App.
2012
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Background

  • 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)
Read the full case

Case Details

Case Name: Nemecek & Cole v. Horn
Court Name: California Court of Appeal
Date Published: Jul 23, 2012
Citation: 208 Cal. App. 4th 641
Docket Number: No. B233274
Court Abbreviation: Cal. Ct. App.