Sage Investors LLC vs. Pools LLC

A Stipulation and Appointment of Official Reporter Pro Tempore (CV/E-206) is required to be signed by each party, the private court reporter, and the Judge prior to the hearing, if not using a

34-2020-00284696-CU-BT-GDS: Sage Investors LLC vs. Pools LLC, a Delaware limited liability company 07/22/2026 Hearing on Petition to Confirm, Correct, or Vacate Contractual Arbitration Award (Alternative Dispute Resolution) in Department 8D

reporter from the Court’s Approved Official Reporter Pro Tempore list.

Once the form is signed it must be filed with the clerk. If a litigant has been granted a fee waiver and requests a court reporter, the party must submit a Request for Court Reporter by a Party with a Fee Waiver (CV/E-211) and it must be filed with the clerk at least 10 days prior to the hearing or at the time the proceeding is scheduled if less than 10 days away. Once approved, the clerk will forward the form to the Court Reporter’s Office and an official reporter will be provided.

Plaintiff Sage Investors, LLC’s (“Sage”) petition to confirm contractual arbitration award is unopposed and GRANTED.

This dispute arises out Plaintiff’s purchase of an interest in Defendant Pools, LLC, operated by Defendant Chris Vrame (“Vrame”) (collectively “Defendants”). Sage filed the operative first amended complaint on May 20, 2021, alleging breach of fiduciary duty and unfair business practices.

On March 3, 2022, this Court granted Sage’s unopposed motion to compel the dispute to arbitration and to stay this action based on an arbitration clause in Pools, LLC’s operating agreement. The parties submitted their dispute to Judicate West for arbitration before Hon. Russell L. Hom, Ret. (“Arbitrator”). Sage now moves to confirm the Arbitrator’s awards.

“Any party to an arbitration in which an award has been made may petition the court to confirm ... the award.” (Code Civ. Proc., § 1285.) A petition under section 1285 must set forth: (1) the substance of or attach a copy of the agreement to arbitrate; (2) the names of the arbitrators; and (3) a copy of the award and the written opinion of the arbitrator, if any. (Id., § 1285.4.) “If a petition or response under this chapter is duly served and filed, the court shall confirm the award as made unless in accordance with this chapter it corrects the award and confirms it as corrected, vacates the award or dismisses the proceeding.” (Id., § 1286.)

The Court finds that the petition contains the information required by statute and therefore confirms the awards, as follows:

On July 7, 2025, the Arbitrator ordered:

SUPERIOR COURT OF CALIFORNIA COUNTY OF SACRAMENTO

34-2020-00284696-CU-BT-GDS: Sage Investors LLC vs. Pools LLC, a Delaware limited liability company 07/22/2026 Hearing on Petition to Confirm, Correct, or Vacate Contractual Arbitration Award (Alternative Dispute Resolution) in Department 8D

Not later than thirty (30) days following the date of this Order, Pools shall pay Sage a total of $256,743.38, which is comprised of attorneys’ fees ($196,521.84), fees of the forensic expert, ($38,423), and costs of arbitration and the preliminary injunction ($21,798.54).

(Petition, Att. 8(c)(1), at p. 23.)

On March 17, 2026, among other things, the Arbitrator ordered:

4. Pools and Vrame shall be held jointly and severally liable for all damages, including attorneys’ fees and costs.

5. Sage’s request for punitive damages is GRANTED.

6. Not later than thirty (30) days following the date of this Ruling, Vrame shall pay Sage, as set forth in this Ruling, a total of $1,933,321.52, which is comprised of damages in the amount of $1,304,238.00, $500,000.00 in punitive damages, reasonable attorneys’ fees and costs of $93,074.28, fees of the forensic expert in the amount of $26,667, and $9,342.24 for the costs of arbitration and the preliminary injunction.

7. Not later than thirty (30) days following the date of this Ruling, Vrame, shall pay Sage, based on Vrame’s joint and several liability and as set forth in the Arbitrator’s July 7, 2025, Ruling, a total of $256,743.38, which is comprised of attorneys’ fees ($196,521.84), fees of the forensic expert, ($38,423), and costs of arbitration and the preliminary injunction ($21,798.54).

(Petition, Att. 8(c)(2), at pp. 17–18.) The Arbitrator also ordered that “Sage shall be awarded pre-judgment interest at the rate of 10% per annum to be calculated from August 27, 2020, through the date an arbitration award is issued” and that postjudgment interest should accrue at the Federal Reserve base rate plus 3%, pursuant to the parties’ agreement. (Id. at p. 14.)

In summary, the Arbitrator ordered that:  Pools, LLC, and Vrame are jointly and severally liable to Sage for all damages, including attorneys’ fees and costs, totaling $1,690,064.90.

SUPERIOR COURT OF CALIFORNIA COUNTY OF SACRAMENTO

34-2020-00284696-CU-BT-GDS: Sage Investors LLC vs. Pools LLC, a Delaware limited liability company 07/22/2026 Hearing on Petition to Confirm, Correct, or Vacate Contractual Arbitration Award (Alternative Dispute Resolution) in Department 8D

 Vrame is liable to Sage for punitive damages in the amount of $500,000.

 Sage shall be awarded pre-judgment interest at 10% per annum from August 27, 2020, through March 17, 2026; and post-judgment interest at the Federal Reserve base rate plus 3% from March 18, 2026, until satisfied.

Sage has provided proof of service that the Petition to confirm Contractual Arbitration Award with Memorandum of Costs was served by mail and email at the address on file for Defendants. The Court’s Register of Actions also shows proof of service of the Order advancing the hearing on the Petition, both by mail (by the Court) and electronic service.

The Court notes that to the extent Defendants may not have received the Court’s orders/notices due to Defendants no longer receiving mail or service as its address of record, such is due to Defendants’ own failure to update its address of record and thus, does not warrant any different result. Defendants have a duty as a litigant to update the Court and other parties with any change of address. (California Rules of Court, rule 2.200 [“[a]n attorney or self-represented party whose mailing address, telephone number . . . or e-mail address (if it was provided under rule 2.111(1)) changes while an action is pending must serve on all parties and file a written notice of the change”]; Bethlahmy v.

Customcraft Industries, Inc. (1961) 192 Cal.App.2d 308, 310 [“the ‘person to be served’ has the burden of notifying the court of any change of address, and failure so to do does not enable him to claim improper notice”].) The Court’s service of orders and notices to Defendants’ address of record is deemed to be effective service unless and until Defendants properly update their respective address of record.

Based on the foregoing, Sage’s petition to vacate the stay and to confirm the arbitration award is GRANTED.

Sage’s request for attorney’s fees and costs is DENIED, without prejudice. A party seeking costs must file a memorandum of costs within 15 days after the date of service of the notice of entry of judgment. (Cal. Rules of Court, rule 3.1700.)[1] A prevailing party seeking a reasonable award of statutory or contractual attorney's fees must do so by noticed motion after judgment is entered and within the time permitted for an appeal of the judgment. (Cal. Rules of Court, rule 3.1702.)

Pursuant to California Rules of Court, rule 3.1312, Plaintiff shall submit a proposed order confirming the award and a proposed judgment for the Court’s consideration.

SUPERIOR COURT OF CALIFORNIA COUNTY OF SACRAMENTO

34-2020-00284696-CU-BT-GDS: Sage Investors LLC vs. Pools LLC, a Delaware limited liability company 07/22/2026 Hearing on Petition to Confirm, Correct, or Vacate Contractual Arbitration Award (Alternative Dispute Resolution) in Department 8D

This minute order is effective immediately.

[1] The Court notes that Sage’s prematurely filed memorandum of costs claims $5,500 in

arbitration fees that appear to have already been awarded to Sage by the Arbitrator.