Luke

Buchalter, Nemer, Fields, Chrystie and Younger (Attorneys) appeal an order of the superior court imposing $4,501.25 in sanctions jointly against the law firm and its client, Baldwin-United Corporation (Baldwin) for filing a frivolous motion to quash. Baldwin has not appealed the order. The issue presented is whether Attorneys’ conduct was so egregious as to justify the imposition of sanctions pursuant to Code of Civil Procedure section 128.5.

Luke filed the underlying action against Baldwin and several of its subsidiaries including National Business Services (National) and Baly, Martin and Fay International, Inc. (BMF) for his wrongful termination as treasurer of BMF. A few months prior to Luke’s termination, National sold BMF to two other named defendants, Charles R. Warde and Joseph N. Tate.

Before answering Luke’s complaint, Attorneys interrogated Larry Proctor, a Baldwin director and financial officer in charge of internal audit, about Baldwin’s contacts with California and researched the law on personal jurisdiction over a foreign corporation. Thereafter Attorneys filed a motion to quash on behalf of Baldwin asserting California did not have personal jurisdiction…