Sheffield Leasing v. Kerzner
Filed 6/15/06 Sheffield Leasing v. Kerzner CA2/7
NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS
California Rules of Court, rule 977(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 977(b). This opinion has not been certified for publication or ordered published for purposes of rule 977.
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION SEVEN
| SHEFFIELD LEASING, INC., et al, Plaintiffs and Respondents, v. KENNETH J. KERZNER et al, Defendants and Appellants. | B182739 (Los Angeles County Super. Ct. No. BC329051) |
APPEAL from an order of the Superior Court of the County of Los Angeles, Ralph W. Dau, Judge. Affirmed.
Molino & Associates, Anthony A. Molino and Robert Mills for Defendants and Appellants.
California Lawyers Group and Robert B. Scapa for Plaintiffs and Respondents.
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Kenneth J. Kerzner, Denise Gonzalez, Midway Motors, Midway Rent-A-Car, Inc. (Midway), Hankey Finance Company, Inc., Gary MacDonald and Don Hankey (collectively the Midway parties) appeal from the trial court's order denying in part their petition to compel arbitration of an action filed against them by Sheffield Leasing, Inc. (Sheffield) and Sheffield's principal shareholders Allan J. Siemons and Mary Lou Siemons. In the underlying action Sheffield has asserted various contract and tort claims against the Midway parties, including several based on the alleged improper solicitation of Sheffield employees Kerzner and Gonzalez in violation of a 1998 settlement in which Sheffield and Midway agreed not to solicit each other's employees for a period of 10 years. The trial court granted the petition to compel arbitration of the issue of the Midway parties' alleged solicitation of Sheffield's employees and stayed the trial court proceedings as to that issue, but otherwise denied the petition. We affirm.
FACTUAL AND PROCEDURAL BACKGROUND
1. The Parties
Sheffield is a California corporation operating as a licensee of Budget Rent-A-Car. Kerzner began working for Sheffield in 1989. In 1997 he became a member of Sheffield's board of directors and served as Sheffield's president. In 2005 Kerzner and Gonzalez, a Sheffield manager, left Sheffield to work for Midway, Sheffield's direct competitor. According to the allegations in the complaint, Hankey Finance Company, Inc. and Don Hankey own and operate Midway and its related company Midway Motors. MacDonald is the president of Midway.
2. The 1997 Lawsuit and the 1998 Settlement Agreement Containing the Arbitration Clause
In 1997 Sheffield's predecessor-in-interest, BRAC-BH, Inc., sued Midway and its principals alleging several causes of action including unfair competition and misappropriation of trade secrets (L.A.S.C. Case No. SC046589). That lawsuit was settled; and a written settlement agreement was signed in April 1998 by Allan J. Siemons on behalf of BRAC-BH and by the principals of Midway and Hankey Finance Company, Inc. In their settlement agreement BRAC-BH and Midway agreed â€
