Transcon Financial, Inc. v. Reid & Hellyer, APC

BACKGROUND

On November 12, 2020, Reid & Hellyer served the motions for sanctions on

Transcon and Talkov. The firm served the motions by first class mail and email. On

December 7, 2020, the firm filed the sanctions motions. Transcon and Talkov filed

opposition briefs arguing in part that Reid & Hellyer had not complied with the 21-day

safe harbor provisions of sections 128.5 and 128.7.

The trial court determined that Reid & Hellyer had complied with the safe harbor

provisions. The court ruled that 21 days from service was December 3, 2020, a

Thursday, but service by email extended the period by two court days to Monday,

December 7. (§ 1010.6, subd. (a)(4)(B).) The court concluded that “the first day to file

was December 7, 2020,” the day on which the firm had filed the motions.

The court further ruled that Transcon and Talkov had engaged in sanctionable

conduct by (1) asserting a cause of action that was legally frivolous and completely

2 meritless and (2) including confidential financial information in the complaint for

purposes of harassment. The court ordered Transcon and Talkov to pay $5,570 in costs

to Reid & Hellyer and another $1,000 each to the…