Case Number: SC129907 Hearing Date: September 10, 2019 Dept: P

Los Angeles County Superior Court, Dept. P

TENTATIVE RULING

Vicky Boladian et al. v. Stephen R. Hofer et al. Case No.: SC129907 (18SMCV00431)

Plaintiff/Cross-Defendant’s Motion to Consolidate Cases SC129907 and 18SMCV00431

Hearing Date: 9/10/2019

In Case No. SC129907, plaintiff Vicky Boladian defendant Stephen R. Hofer formed Aerlex Tax Services and Hofer took unilateral, unauthorized early distributions. A motion to compel arbitration of the claims was granted in part, and the non-arbitrable claims were stayed.

Boladian later filed a separate action (18SMCV00431) seeking declaratory relief as to the arbitrability of Hofer’s claim for $518,000.00 under an alleged promissory note. Hofer filed a cross-complaint in that action seeking payment under that promissory note. All claims in SC129907 are either ordered to arbitration or have been stayed. Boladian dismissed her complaint in case no. 18SMCV00431; only Hofer’s cross-complaint remains. Boladian moves to consolidate SC129907 with Hofer’s cross-complaint in 18SMCV00431.

Under California Code of Civil Procedure Section 1048(a), a court may order separate actions consolidated for joint trial when they involve common questions of law or fact. Cal. Rule of Court 3.350 provides the requirements that must be met for a motion to consolidate to be granted.

Both cases arise out of the same circumstances—the “spin-off” of Aerlex Tax from Aerlex Law, and the obligations created by that transaction. The alleged promissory note is one of those alleged obligations. Both cases that alleged debt, and both cases share significant questions of law and fact. Additionally, since Hofer moved to compel arbitration of all issues in SC129907 (including those arising out of the alleged promissory note) in the first place, it would be inequitable for the court to allow him to escape the stay for the purposes of advancing his own cross-complaint in 18SMCV00431. The motion is GRANTED. The cases will first be deemed related, then consolidated under SC129907. Hofer’s cross-complaint will be stayed pending arbitration.