Galleria Plus, Inc. v. Hanmi Bank

Appellant David D. Kim & Associates appeals from an order directing payment of monetary sanctions to respondent Hanmi Bank pursuant to Code of Civil Procedure section 128.7. Among other arguments, appellant contends that respondent failed to provide required notice of its motion for sanctions. We agree—respondent’s notice of its motion for sanctions did not meet the requirements of sections 128.7, subdivision (c)(1) and 1010. The award of sanctions therefore must be reversed. We need not and do not address appellant’s other arguments.

FACTUAL AND PROCEDURAL SUMMARY

In March 2008, appellant filed a complaint on behalf of its client Galleria Plus, Inc., against respondent, alleging a violation of Financial Code section 952 and related causes of action. On April 25, 2008, respondent served appellant with a purported notice of motion for sanctions in the amount of $7,022.50 against appellant. The notice asserted that the claims underlying the complaint against respondent were not warranted by existing law, and that appellant was collaterally estopped from representing Galleria Plus, Inc. The face page and body of the document stated that the motion would come on for hearing…