Following the denial of a preliminary injunction, Mark and Tammy Smith’s lawsuit in opposition to Neora and Jeff Olson is heading to arbitration.
In ruling in opposition to the Smiths, the California District Courtroom discovered commenced arbitration proceedings in Texas had been “totally and pretty litigated”.
Because the vigorous objections by the Smiths’ counsel on the evidentiary listening to replicate, the difficulty was totally litigated within the State courtroom continuing.
And whereas the Smiths argue that the difficulty was not pretty litigated, they provide no authorized authority for his or her competition that overruled objections necessitate a discovering of “unfair” litigation.
The courtroom additionally dominated the Californian movement for a preliminary injunction concerned “similar points” beforehand litigated in Texas.
As to different arguments put forth by the Smiths in opposition to arbitration;
Since there isn’t a longer a dispute of truth to be resolved with respect to the settlement to arbitration, the Smiths are unlikely to succeed on the deserves and there are not any critical questions going to the deserves.
Thus, the Courtroom needn’t contemplate the opposite components and denies the movement for preliminary injunction.
Principally this can be a win for Neora, as arbitration in Texas favors them over litigating in California.
The Californian District Courtroom’s order denying the Smith a preliminary injunction was made on June twentieth.
On June twenty seventh Mark and Tammy Smith filed a movement for reconsideration of the order.
A choice on the Smiths’ reconsideration movement is pending.
Replace twenty seventh September 2019 – As per a September tenth order, Mark and Tammy Smith’s movement for reconsideration has been denied.
The order additionally stays the case pending the end result of arbitration.
The courtroom has directed the Smiths and Nerium to file a standing report relating to arbitration in six months. I’ll be checking the docket each three months from right here in case there’s any interim updates.
Replace twenty ninth December 2019 – This case is getting fairly legal-heavy and pushing my information of the US authorized system.
If I’m studying a December ninth order accurately, the difficulty of Texas arbitration overriding the Californian case has now been turned over to the Ninth Circuit Courtroom of Appeals.
Pending an end result of the Ninth Circuit attraction, keep tuned…
Replace twenty seventh June 2020 – The Smiths lawsuit in opposition to Neora was voluntarily dismissed on June 1st.