John Marshall et al v. Andrew Wright et al

Filing 20

JUDGMENT by Judge John A Kronstadt: IT IS HEREBY ORDERED, ADJUDGED AND DECREED that: (A) The attached Arbitration Award in favor of the Wrights andagainst the Lincoln Parties is hereby confirmed as a Judgment. Specifically:1. The Lincoln Parties are jointly and severally liable for and shallpay to the Wrights compensatory damages in the amount of $1,170,500.00. 2. The Lincoln Parties are jointly and severally liable for and shall pay to the Wrights simple interest at the rate of 10% p er annum on the amount of $1,170,500.00 from the date of the award until the award is paid in full. 3. Lincoln Financial is solely liable for and shall pay to the Wrights compensatory damages in the amount of $590,000.00. 4. Lincoln Finan cial is solely liable for and shall pay to the Wrights simple interest at the rate of 10% per annum on the amount of $590,000.00 from the date of the award until the award is paid in full. 5. Lincoln Financial is solely liable for and shal l pay to the Wrights $600.00 to reimburse the Wrights for the non-refundable portionof the Wrights= initial claim filing fee. (B) The Lincoln Parties' Complaint and Petition for Vacation of Arbitration Award is hereby dismissed, with prejudice. (C) Sanctions in the form of attorneys fees of $5,000 are awarded infavor of the Wrights and against the Lincoln Parties and their counsel, LewisBrisbois Bisgaard & Smith LLP. (MD JS-6, Case Terminated). (shb)

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ROSEN & ASSOCIATES, P.C.
Robert C. Rosen (SBN 79684)
Kirsten Anderson (SBN 175936)
444 S. Flower Street, Suite 602
Los Angeles, California 90071
Tel.: [phone]; Fax: [phone]
e-mail: [e-mail]

JS-6

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Attorneys for Petitioners and Cross-Respondents
ANDREW WRIGHT and BLENDA WRIGHT

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UNITED STATES DISTRICT COURT
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FOR THE CENTRAL DISTRICT OF CALIFORNIA

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ANDREW WRIGHT and
BLENDA WRIGHT, Trustees of
The Wright Family Trust,

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JUDGMENT

Petitioners,
v.
JOHN MARSHALL, ROLLANCE
VERKINNIS and LINCOLN
FINANCIAL ADVISORS CORP.,

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CASE NO.: CV11 04506 JAK VBKx
[Hon. John A. Kronstadt]

Respondents.
[Removed from state court]
__________________________
JOHN MARSHALL, ROLLANCE
VERKINNIS and LINCOLN
FINANCIAL ADVISORS CORP.,
Cross Petitioners
[improperly designated as
Petitioners],

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v.

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ANDREW WRIGHT and
BLENDA WRIGHT, Trustees of
The Wright Family Trust,

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Cross Respondents,
[improperly designated as
Respondents].

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JUDGMENT

On April 27, 2011, a decision and award ("Award") was issued by a

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three member arbitrator panel in an arbitration proceeding governed by the

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Financial Institutions Regulatory Authority ("FINRA," formerly NASD).

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According to the Award, ANDREW and BLENDA WRIGHT (the "Wrights"),

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prevailed against the Respondents, JOHN MARSHALL, LINCOLN

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FINANCIAL ADVISORS CORPORATION, and ROLLANCE VERKINNIS

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("Lincoln Parties"). The current proceeding in this Court concerns that

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Award.
On May 18, 2011, in California Superior Court, in Los Angeles, the

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Wrights filed a Petition to Confirm Arbitration Award ("State Proceeding").

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On May 25, 2011, in this Court, the Lincoln Parties filed a Complaint and

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Petition for Vacation of Arbitration Award with Prejudice ("Complaint").

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[Docket No. 1] In the Complaint, the Lincoln Parties petitioned this Court to

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vacate the Award.
On May 27, 2011, the Lincoln Parties filed a Notice of Removal of

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Action and related documents. [Docket No. 4] By that Notice, the State

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Proceeding was removed to this Court.
On June 9, 2011, the Wrights filed a motion which asked this Court for

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an Order for the following relief ("Motion") [Docket No. 10]:
(1) Remand this case to state court because federal
jurisdiction is lacking and/or because this Court should abstain
from accepting jurisdiction over any part of this case, or
(2) Grant the Petition by the Wrights to Confirm
Contractual Arbitration Award ("Petition to Confirm;" see also
"Award" at Ex. 2; and "Petition" at Ex. 3) and dismiss or deny
the "Complaint and Petition for Vacation of Arbitration Award"
("Petition to Vacate"; on Court's Docket as No. 1) filed by [Cross]
Petitioners JOHN MARSHALL, ROLLANCE VERKINNIS and
LINCOLN FINANCIAL ADVISORS CORPORATION (collectively,
"Lincoln" or "Removing Parties" or Cross Petitioners
mis-designated as Petitioners); and
(3) Award attorneys' fees and/or Rule 11 sanctions in favor
of the Wrights and against Lincoln and their counsel.
///

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On June 27, 2011, the Lincoln Parties filed "Defendants' Opposition to
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JUDGMENT

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that Portion of Plaintiffs' Motion to Remand Requesting an Award re Motion

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to Remand Case, etc." ("Opposition") [Docket No. 12].

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On July 1, 2011, the Parties filed a "Stipulation and [Proposed] Order of

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Dismissal of the Complaint and Petition for Vacation of Arbitration Award

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with Prejudice as to All Cross-Respondents." [Docket Nos. 13 and 14]

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On July 5, 2011, the Wrights filed a "Reply in support of Motion for

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Sanctions, etc." [Docket No. 15].

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On July 11, 2011, at 1:30 p.m., the Honorable John A. Kronstadt,

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Judge presiding in Courtroom 750, held a hearing on the Motion by the

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Wrights to: (1) Remand this Case to State Court and/or Abstain from

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Accepting Jurisdiction; or (2) Grant the Wrights' Petition to Confirm the

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Arbitration Award and Dismiss or Deny Lincoln's "Complaint and Petition to

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Vacate" the Award; and (3) Award Attorneys' Fees And/or Sanctions Against

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the Lincoln Parties and their Counsel.

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After reviewing the motion papers, the file in this case and after oral

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argument by counsel, the Court enters judgment in favor of the Wrights and

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against the Lincoln Parties as follows:

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IT IS HEREBY ORDERED, ADJUDGED AND DECREED that:
(A)

The attached Arbitration Award in favor of the Wrights and

against the Lincoln Parties is hereby confirmed as a Judgment. Specifically:
1.

The Lincoln Parties are jointly and severally liable for and shall

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pay to the Wrights compensatory damages in the amount of

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$1,170,500.00.

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2.

The Lincoln Parties are jointly and severally liable for and shall

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pay to the Wrights simple interest at the rate of 10% per annum

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on the amount of $1,170,500.00 from the date of the award until

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the award is paid in full.
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JUDGMENT

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3.

compensatory damages in the amount of $590,000.00.

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Lincoln Financial is solely liable for and shall pay to the Wrights

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Lincoln Financial is solely liable for and shall pay to the Wrights

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simple interest at the rate of 10% per annum on the amount of

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$590,000.00 from the date of the award until the award is paid in

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full.

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5.

Lincoln Financial is solely liable for and shall pay to the Wrights

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$600.00 to reimburse the Wrights for the non-refundable portion

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of the Wrights= initial claim filing fee.

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(B)

The Lincoln Parties' Complaint and Petition for Vacation of

Arbitration Award is hereby dismissed, with prejudice.
(C)

Sanctions in the form of attorneys fees of $5,000 are awarded in

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favor of the Wrights and against the Lincoln Parties and their counsel, Lewis

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Brisbois Bisgaard & Smith LLP.

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(D)

Sanctions due by the Lincoln Parties and their counsel are to be

paid to the Wrights no later than July 25, 2011.

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DATED: August 1, 2011

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_____________________________
Hon. John A. Kronstadt
United States District Court

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Central District of California
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N:\WORK\WRIGHT, ANDREW and BLENDA\5. WRIGHT V. MARSHALL LASC - 1389-05\0. MARSHALL V. WRIGHT USDC\COURT\Proposed
Judgment 07-28-11.wpd

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JUDGMENT