Subcontracting Concepts v. ADR Services CA4/3

STATEMENT OF FACTS

Defendant Lucie Barron owns and operates codefendant ADR Services, Inc., (ADR) a firm which provides arbitration and mediation services to the public. ADR allegedly holds itself out as providing “‘the highest level of quality, integrity, and efficiency in dispute resolution

2 services’” as well as guidance to consumers on choosing the correct neutral for their situation. Plaintiff Subcontracting Concepts, LLC (SCI) was named as a defendant in a wage and hour dispute compelled to arbitration, Wyatt v. Orange County Courier & Logistics LLLP (Super. Ct. Orange County, 2017, No. 00937665). Based on ADR’s advertising on its website and in marketing e-mails targeting potential customers, SCI decided to hire ADR to appoint a neutral arbitrator to join a three-arbitrator panel in the arbitration. ADR appointed attorney Robert Friedenberg to serve as neutral in SCI’s matter in March 2020, describing him as impartial and someone with significant experience in trials. However, SCI alleged that Friedenberg and ADR failed to disclose the previous existence of a $200 million legal malpractice judgment against Friedenberg.1 After his appointment to the case, SCI alleged,…