4DCA Division 3 Oral Argument - 2026/07/23 - Jul 23, 2026

argument

4DCA Division 3 Oral Argument - 2026/07/23

California Fourth District Court of Appeal, Division Three 3h 34m 8 chapters transcribed 1 month ago official recording ↗

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Transcript generated automatically by AI and may contain errors.

What does the court say at the opening of the oral argument?

Unknown 8:03

Mm.

Justice Motuike 8:42

I didn't know.

Justice Motuike 8:53

Oh literally. What is it?

Justice Motuike 9:10

Yeah, I think that's kind of Yeah, but

Jonathan Perceives Panel Gates 9:16

yeah. Yeah. Yeah, yeah, yeah.

Tom Gilbert 9:23

They'll have so

Jonathan Perceives Panel Gates 9:25

Right, I know that's like. But if they have that boost. I'm sorry, I think very well. Make sure it's not a lot.

Justice Motuike 9:41

Yeah, no, it's done. I mean maybe you just not want to think about it. Excellent. That's one item.

Jonathan Perceives Panel Gates 9:54

I can look at it. Oh not the same.

Justice Motuike 10:00

And I think that's really well.

Jonathan Perceives Panel Gates 10:08

Oh yeah, you're not really Oh share things, yeah. Yeah, but that's a cloud problem. Oh problem. Mm-hmm. I think that

Justice Motuike 10:26

And go to the fine. Yeah.

Unknown 10:30

Sorry.

Justice Motuike 10:31

I'm curious. Okay.

Jonathan Perceives Panel Gates 10:35

You can.

Justice Motuike 10:36

That's we can

Jonathan Perceives Panel Gates 10:37

that's we can have that means you need to run costs like all those. It's

Justice Motuike 10:48

Yeah,

Jonathan Perceives Panel Gates 10:51

Thank you.

Justice Motuike 10:54

How end of the one? Yeah, you find it. Sure. Okay. Yeah, yeah. Like the path.

Justice Motuike 11:22

Yeah, Oh punch you're just gonna be there. Yeah. Sheep enough.

Justice Motuike 11:38

Yeah. Uh It is Yeah, they're talking about it.

Unknown 11:47

You point out so.

Justice Motuike 11:49

Yeah, it's important. Yeah.

Unknown 12:03

Okay. Yeah.

Justice Motuike 12:08

Yeah, I mean I don't make site. Yeah.

Justice Motuike 12:30

Yep, you still have everyone.

Justice Motuike 12:50

Yeah because Yeah, you can't see it. Yeah, I really should say that you've got to. Oh that's good. Oh this will happen that's even a good fish.

Jonathan Perceives Panel Gates 13:11

Yeah. So

Justice Motuike 13:14

Because you can get that. Yeah. This really shows it. Yeah. Everything. Oh you think that's the thing that was it? You might be some. Which I don't miss that. I should say. Oh yeah, yeah.

Unknown 13:50

Oh you could say.

Justice Motuike 13:55

Excuse me. I think um

Unknown 14:00

Okay.

Jonathan Perceives Panel Gates 14:02

Like it's not

Justice Motuike 14:03

good for the English.

Jonathan Perceives Panel Gates 14:04

Okay.

Justice Motuike 14:06

So it's it's like so much.

Justice Motuike 14:15

Yeah, and that's it.

Jonathan Perceives Panel Gates 14:21

But just letting you know that Red Identified probably until it's so composition or those that's why invited the play.

Unknown 15:15

Tom Gilbert 15:22

All right.

Jonathan Perceives Panel Gates 15:25

For the PL fourth Pellet

Tom Gilbert 15:26

District Division Three is now in session.

Justice Motuike 15:31

Maybe still. Good morning everyone. Welcome to the court. Um I am Justice Motuike. To my right is Justice Gooding and to my less left is Justice Scott. Uh we have two matters today, two different panels. First matter we'll call is BR H E Group versus David Bates.

Justice Motuike 16:23

And whenever appellants are ready, you may proceed.

Bart Jordan 16:29

Good morning, your honors. My name is Bart Jordan of Rutanna Tucker, L O P representing appellants. Uh I'm going to handle the argument for both of the appellants. mister Hersey would like to reserve two minutes and I would like to reserve five minutes for rebuttal. Your Honor, this appeal stems from a dispute over sale of a business, uh Bates Croftry Reese, LLP or BCR, to BRHE Group. BIG purchased essentially all of the assets of B CR in January twenty twenty two for four point six million dollars. As part of that, B CR extended BRHE a six hundred ninety thousand dollar secured promissory note and a four hundred thousand dollar line of credit. No payments have been made on secured promissory notes. Uh money is still owed on the line of credit.

Bart Jordan 17:12

We estimate that our clients, uh both of whom are elderly retirees, are owed approximately one million dollars. When we uh demanded payment. The other side immediately uh sued in federal court uh for fraud and breach of contract. We demur. on the grounds that the sales agreement in this case contains an alternative dispute resolution clause. And that ADR clause makes mediation and then arbitration a condition precedent to any litigation. Uh, the trial court sustained the demur. Uh with leave to amend, they had twenty days. They twenty days came and went. The RHG group filed a first admitted complaint that admitted our clients, uh the appellants from all causes of action, uh, and completely from the complaint with the exception of the caption.

Bart Jordan 17:57

Um so they're still listed on the caption. That's it. There's no allegations pending against them.

Justice Motuike 18:02

And they're the parties are now in in an arbitration, an active arbitration proceeding, correct?

Bart Jordan 18:07

Yes, Your Honor, that's correct. Uh B CR demanded arbitration. Uh BRG was compelled to arbitration in a separate proceeding. and has uh alleged the same claims they alleged in the civil court action uh as counterclaims in the arbitration. The after the demur was sustained, uh the time to amend it passed, the first amended complaint had been filed. We applied ex parte pursuant to Code of Civil Procedure, Section 581, Subdivision F two, and the applicable California Rules of Court.