Royal Pacific Funding Corp. v. Arneson CA4/3

Filed 7/28/15 Royal Pacific Funding Corp. v. Arneson CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FOURTH APPELLATE DISTRICT

DIVISION THREE

ROYAL PACIFIC FUNDING CORPORATION etc., et al., G050158 Plaintiffs and Respondents, (Super. Ct. No. 30-2013-00685363) v. OPINION LINDA ARNESON,

Defendant and Appellant.

Appeal from an order of the Superior Court of Orange County, Margaret R. Anderson, Judge. (Retired judge of the Orange Super. Ct. assigned by the Chief Justice pursuant to art. VI, § 6 of the Cal. Const.) Reversed and remanded. Ross & Morrison and Andrew D. Morrison for Defendant and Appellant. Johnson & Associates, Randall K. Johnson; Schiffer & Buus, Eric M. Schiffer and William L. Buus for Plaintiffs and Respondents. * * *

Linda Arneson worked for Pacific Mortgage,1 partly on salary, partly on commission. After she left Pacific in February 2013, she claimed she was owed commissions for, among other things, certain work done by a fellow employee as part of her team. Representing herself, she filed a wage claim with the state Labor Commissioner, and, in October 2013, obtained an award of approximately $29,500. Pacific timely filed an appeal to the Orange County Superior Court, and timely filed a bond guaranteeing Arneson’s award. The appeal prompted Arneson to seek legal counsel in mid-December 2013. Her counsel substituted into the case on January 10, and six days later the court scheduled a pretrial conference for early March 2014, and the appeal itself for late March. In early February, Arneson’s new counsel did some very effective saber- rattling by serving Pacific notice that Arneson was reserving the right to present claims beyond just unpaid commissions at the scheduled hearing on the appeal, such as violations of various Labor Code sections and even fraud and negligent misrepresentation.2 Pacific concluded that fighting potential new claims was not the better part of valor and, in late February, withdrew its appeal with prejudice. Pacific then paid the Labor Commission award, plus accrued interest. Which brings us to what this case is really about: Arneson’s counsel’s claim for attorney fees. In early March 2014, Arneson’s counsel filed a motion for attorney fees and costs.3 The trial court denied all fees to Arneson on the theory that there must be a court award under Labor Code section 98.24 before a party can collect its