Currency Corp. v. Wertheim CA2/1

BACKGROUND

A. Loans Parviz Omidvar and his relatives, Oliver and O’Neil Omidvar, and their company, Tiffany Ventures, LLC (the Omidvar parties), along with Currency Corporation (we will refer to the Omidvar parties and Currency Corporation collectively as “Currency”), loaned money at high interest rates to elderly artists who owned royalty rights. In exchange, the artists would assign their royalties to Currency. Currency made some 80 loans to Maibell Page, the widow of Eugene Page, a successful songwriter. Maibell assigned to Currency the royalty rights she derived from Eugene.

2 1. The June 2006 Note On June 2, 2006, Currency made the loan that is the subject of this and three related actions. As evidenced by a promissory note (the June 2006 note), Currency loaned Maibell Page $6,500 for six months at an interest rate of two percent compounded every 10 days, with an administrative fee of 10 percent. The June 2006 note contained an arbitration clause and three attorney fees provisions. The first fee provision stated: “[I]n connection with any claim or dispute arising out of or relating to this Note, including any litigation, arbitration or other proceeding alleging a…