Lower Court’s Failure To Consider The Extrinsic Mistake Motion To Vacate Judgment In Post-Arbitration Proceedings Was Error.
In Mehr v. Korbin, Case No. B335052 (2d Dist., Div. 4 Apr. 25, 2025) (unpublished), ex-client and ex-attorney got into a dispute on the division of attorney’s fees from a third-party global settlement, agreeing to arbitrate the dispute. Ex-attorney received most of what he wanted, prompting proceedings to vacate or to confirm the arbitration award. Ex-client did not respond to the petition to confirm, nor appear at the hearing, with judgment entered on the arbitration award in ex-attorney’s favor. Subsequently, ex-client filed a motion to vacate the judgment under CCP § 473.5 and the equitable doctrine of mistake, arguing that she was disabled because of domestic violence and resulting medical issues. The lower court denied the motion, finding it was untimely under section 473.5 but apparently not considering the equitable mistake ground raised by ex-client.
On appeal by ex-client (who relied solely on the equitable mistake argument), the 2/4 DCA reversed and remanded. Equitable relief for extrinsic mistake is an available ground for a motion to vacate a judgment—with the litigant needing to show (1) a meritorious defense; (2) a satisfactory excuse for not presenting a defense; and (3) diligence in seeking to set aside the judgment once discovered. (Rodriguez v. Cho, 236 Cal.App.4th 742, 750 (2015).) Although not intimating how the decision should go on remand, the reversal was grounded in the lower court abusing its discretion by not considering her equitable ground for relief.