Real Property Law
CALIFORNIA CASE SUMMARY UPDATE: May 2024 Real Property Case Summaries

Monty A. McIntyre, Esq.
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CALIFORNIA COURTS OF APPEAL
Arbitration
Lew-Williams v. Petrosian (2024) _ Cal.App.5th _ , 2024 WL 1404151: The Court of Appeal reversed the trial court’s order dismissing plaintiffs’ action, without prejudice, for failure to prosecute the case in arbitration after the trial court had granted a motion to compel arbitration. In April of 2020 plaintiffs filed their complaint alleging numerous causes of action, including conspiracy to convert and embezzle funds, financial elder abuse, and declaratory relief, breach of contract, negligence, bad faith, and unfair business practices. In July 2021, the trial court granted defendants’ motion to compel arbitration. In February 2023, the trial court dismissed the case for failure to prosecute the arbitration. The Court of Appeal disagreed and reversed. Once the trial court granted the motion to compel arbitration and stayed the action, it retained only vestigial jurisdiction over the case as provided in the California Arbitration Act (Code Civ. Proc., § 1281 et seq.), and the trial court did not have the power to dismiss the claims for failure to prosecute. If a party fails to diligently prosecute an arbitration, the appropriate remedy is for the opposing party to seek relief in the arbitration proceeding (and, if necessary, the opposing party may need to initiate the arbitration for this purpose). (C.A. 2nd, April 2, 2024.)
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