Bachrach v. Compagno CA2/1

Filed 1/6/15 Bachrach v. Compagno CA2/1 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

SHEL BACHRACH et al., B252454

Plaintiffs and Respondents, (Los Angeles County Super. Ct. No. BC511242) v.

NATALIE COMPAGNO et al.,

Defendants and Appellants.

APPEAL from an order of the Superior Court of Los Angeles County, Steven J. Kleifield, Judge. Affirmed. Fernald Law Group and Brandon C. Fernald for Defendants and Appellants. Law Offices of James T. Duff and James T. Duff for Plaintiffs and Respondents. ——————————

Travelers Bookcase, LLC (Travelers) and Natalie Compagno appeal from an order denying their motion to compel arbitration after the trial court found that the equitable claims at issue were excluded from appellants’ contract with respondents Shel and Ryan Bachrach. We affirm. FACTUAL AND PROCEDURAL BACKGROUND Travelers is an independent bookstore in Los Angeles previously owned by Compagno. In September 2011, the Bachrachs invested $25,000 each to obtain a collective 25 percent interest in Travelers. In conjunction with that transaction, Compagno and the Bachrachs executed an operating agreement, which contains the following arbitration provision: “ . . . Any action to enforce or interpret this Agreement or to resolve disputes between the Members or by or against any Member shall be settled by arbitration in accordance with the rules of the American Arbitration Association. Any party may commence arbitration by sending a written demand for arbitration to the other parties. Such demand shall set forth the nature of the matter to be resolved by arbitration. The substantive law of the State of California shall be applied by the arbitrator to the resolution of the dispute. The parties shall share all initial costs of arbitration, provided that the prevailing party shall subsequently be entitled to reimbursement by the other party or parties of its attorney’s fees, costs and expenses incurred in connection with the arbitration. All decisions of the arbitrator shall be final, binding, and conclusive on all parties and shall, except as provided in Section 12.1, constitute the only method of resolving disputes or matters subject to arbitration pursuant to this Agreement. Judgment may be entered upon any such decision in accordance with applicable law in any court having jurisdiction thereof. Notwithstanding the foregoing, no arbitrator shall have the power to render equitable relief of any kind, and requests for such relief shall be referred to a court of competent jurisdiction.” (Italics added.) In June 2013, the Bachrachs filed this action against Compagno and Travelers, alleging two claims seeking equitable relief against both defendants—dissolution of the limited liability company and an accounting—and three tort claims against Compagno