BCX International v. York
In this contract action, the trial court declared a mistrial during a jury trial when plaintiff BCX International, Inc., U.S.A. (BCX), a Massachusetts corporation, revealed that it was not registered to transact intrastate business in California. The trial court denied defendant Merv Yorks motion to dismiss for lack of capacity and instead stayed the action to permit BCX to obtain a certificate of qualification. The court also ordered BCX to pay York over $118,000 in attorneys fees and costs as sanctions under Code of Civil Procedure section 128.7, subdivision (b)(1) for bringing the action for an improper purpose.
BCX appeals from the portion of the trial courts order regarding corporate status and plaintiffs payment of defendants fees and costs which required BCX to pay York sanctions. BCX contends the trial court erred in granting a mistrial rather than continuing with the jury trial, erred in imposing the burden of proof regarding BCXs capacity to sue on BCX, abused its discretion in imposing sanctions in the amount of $118,584.95 on BCX, and exhibited racial prejudice in its ruling and reasoning. Court disagree and affirm.
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