Allegations In Complaint Do Not Amount To Judicial Admissions.

A law firm allegedly represented both buyer and seller in the sale of commercial property. The buyer borrowed more than half the purchase price and relied on rental income to make loan payments. After several months, the tenant stopped paying, and in the absence of rental income, the purchaser was unable to make loan payments. The purchaser brought an action against several persons, including the law firm. The law firm moved to compel arbitration. The trial court denied the petition to compel arbitration due to the possibility of inconsistent rulings. On appeal, the law firm argued that because the complaint alleges that all defendants are agents of one another, that allegation is a binding judicial admission that gives the defendants the right to enforce the arbitration agreement between the purchaser and the law firm. The trial court affirmed the denial of the petition to arbitrate, finding allegations “that all defendants are one another’s agents is not a judicial admission.” Barsegian v. Kessler & Kessler (Cal.App. Second Dist., Div. 1; April 15, 2013) (Case No. B237044).