Judge Holly J. Fujie, Case Number: 24STCP00779, Date: 2024-10-23 Tentative Ruling

MOVING PARTY: Petitioners BARRY THOMPSON and NIJOLE THOMPSON (“Petitioners”)

The court considered the moving papers filed in connection with this petition. No opposition to the petition was filed.

This action arose from a dispute regarding the sale of the property located at 10440-10446 Hebron Lane in Los Angeles, California (the “Property”) pursuant to a purchase agreement (“Purchase Agreement”) between Petitioners as buyers and Respondents Michael Chu (“Chu”) and Danna Ballard (“Ballard”) (collectively, (“Respondents”) as sellers. (Amended Petition Confirm Arbitration Award, Exh. A.) Petitioners allege that Respondents breached the Purchase Agreement and did not complete the sale of the Property. The matter was arbitrated as required by the terms of the Purchase Agreement.

After the first phase of a bifurcated arbitration proceeding, the arbitrator issued a Partial Final Award on December 7, 2023, granting Petitioners possession of the property and ordered specific performance regarding the sale of the Property. (Id., Exh. B.) On February 14, 2024, following the second phase of the proceedings, the arbitrator issued a final Partial Final Award confirming the previous possession and specific performance decisions and included a monetary award of $70,059.38 in damages, prevailing party attorneys’ fees amounting to $116,125 and costs of $44,805.82 in favor of Petitioners and against Respondents, who are jointly and severally liable. (Id., Exh. C.)

Petitioners moved to confirm the arbitration award by filing the instant petition to confirm the arbitration award against Respondents on March 13, 2024. On March 14, 2024, Petitioners filed a Notice of Stay of Proceedings, notifying this Court of the bankruptcy proceeding filed by Ballard in the United States Bankruptcy Court for the District of Utah, Case No. 24-21077 (“Bankruptcy Case”). Chu has not filed for bankruptcy.

On August 13, 2024, Petitioners filed an Amended Petition to Confirm Arbitration Award. Petitioners aver that the court in the Bankruptcy Case granted Ballard a discharge, lifting the automatic stay on this case. (Id., Exh. E.) Petitioners now ask this Court for confirmation of only the portions of the Arbitration Award which were not discharged in the Bankruptcy Case.

An arbitration award is not directly enforceable until it is confirmed by a court and judgment is entered. (Code Civ. Proc., § 1287.6; Jones v. Kvistad (1971) 19 Cal.App.3d 836, 840.) A party may seek a court judgment confirming an arbitration award by filing and serving a petition at least 10 days, but no more than four years after the award is served. (Code Civ. Proc., §§ 1288, 1288.4.)

“Any party to an arbitration in which an award has been made may petition the court to confirm, correct or vacate the award. The petition shall name as respondents all parties to the arbitration and may name as respondents any other persons bound by the arbitration award.” (Code Civ. Proc., § 1285.) “A petition under this chapter shall: (a) Set forth the substance of or have attached a copy of the agreement to arbitrate unless the petitioner denies the existence of such an agreement. (b) Set forth the names of the arbitrators. (c) Set forth or have attached a copy of the award and the written opinion of the arbitrators, if any.” (Code Civ. Proc., § 1285.4.) “If a petition or response under this chapter is duly served and filed, the court shall confirm the award as made…unless in accordance with this chapter it corrects the award and confirms it as corrected, vacates the award or dismisses the proceeding.” (Code Civ. Proc., § 1286.) Any response to the petition is required to be filed and served within 10 days after service of the petition. (Code Civ. Proc., § 1290.6.)

The Court finds that Petitioners have established that the procedural requirements have been met. There being no response, the Court finds that the arbitration award is proper to confirm. “If [an] award is confirmed, judgment must be entered in conformity therewith.” (Jones, supra.)

In view of the bankruptcy discharge granted to Ballard, the monetary award is confirmed only as against Chu, but not against Ballard. (Hurley v. Bredehorn (1996) 44 Cal.App.4th 1700 [a bankruptcy discharge voids judgments to the extent they determine the debtor's personal liability].) The award for specific performance, however, is not a claim within the meaning of the Bankruptcy Code, as it does not give rise to the payment of money. (In Re Ter Bush (273 B.R. 625, 628-629.) Accordingly, the arbitration award with respect to specific performance for the completion of the sale of the Property is confirmed as against both Respondents.

Based on the foregoing, the Court grants Petitioner’s petition to confirm arbitration award. The Court enters judgment for possession and specific performance against both Respondents, jointly and severally, as well as judgment in the total amount of $230,990.20 as against Chu.

Parties who intend to submit on this tentative must send an email to the Court at SMC_DEPT56@lacourt.org as directed by the instructions provided on the court website at www.lacourt.org. If the department does not receive an email and there are no appearances at the hearing, the motion will be placed off calendar.

Hon. Holly J. Fujie

Judge of the Superior Court