Galleria Plus, Inc. v. Hanmi Bank

Opinion

EPSTEIN, P. J.

Appellant David D. Kim & Associates appeals from an order directing payment of monetary sanctions to respondent Hanmi Bank pursuant to Code of Civil Procedure section 128.7.

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Among other arguments, appellant contends that respondent failed to provide required notice of its

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motion for sanctions. We agree—respondent’s notice of its motion for sanctions did not meet the requirements of sections 128.7, subdivision (c)(1) and 1010. The award of sanctions therefore must be reversed. We need not and do not address appellant’s other arguments.

FACTUAL AND PROCEDURAL SUMMARY

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In March 2008, appellant filed a complaint on behalf of its client Galleria Plus, Inc., against respondent, alleging a violation of Financial Code section 952 and related causes of action. On April 25, 2008, respondent served appellant with a purported notice of motion for sanctions in the amount of $7,022.50 against appellant. The notice asserted that the claims underlying the complaint against respondent were not warranted by existing law, and that appellant was collaterally estopped from representing Galleria Plus, Inc. The face page and body of the document stated that the motion would come on for hearing “on AAA at BBB.” It noted that the motion for sanctions could not be filed until 21 days after it had been served, which in this case would be “on and after May 23, 2008.” On June 13, 2008, respondent served appellant with a motion for sanctions and filed it with the court the same day. The June 13, 2008 motion stated that respondent would move the court for a sanctions order on August 6, 2008.

The motion came on for argument before the trial court, and was continued to allow respondent to prepare a declaration showing compliance with the notice requirements of section 128.7. The trial court then heard oral argument on the motion and took the matter under submission. It granted the motion, ordering sanctions in the amount of $7,022.50 against three attorneys doing business as “David D. Kim & Associates.” Appellant timely appeals from the order pursuant to section 904.1, subdivision (a)(12).