Young

I. INTRODUCTION

Plaintiff and respondent Corina Young (plaintiff) filed two civil complaints

alleging various acts of mismanagement and self-dealing in the operation of a cannabis

dispensary known as Southern California Organic Treatment (SCOT). The first

1 complaint (derivative action) was filed in plaintiff’s representative capacity as a

shareholder of SCOT and named David Gash (Gash), Quorum Green Industries, LLC

(Quorum), two additional individuals, and five additional limited liability companies as

defendants.1 The second complaint (contract action) alleged that Gash and Quorum’s

acts and omissions also constituted a breach of the stock purchase agreement in which

plaintiff initially purchased 10 percent of the shares in SCOT.

Defendants and appellants Gash and Quorum (collectively, defendants) moved to

compel arbitration of all the claims alleged in the contract action. However, the trial

court concluded that the derivative action constituted a pending court action involving

third parties arising out of the same set of transactions within the meaning of Code of

Civil Procedure2 section 1281.2, subdivision (c). The trial court further concluded that

ordering…