Judge: John J. Kralik, Case: 24BBCP00001, Date: 2024-02-23 Tentative Ruling
Case Number: 24BBCP00001 Hearing Date: February 23, 2024 Dept: NCB
North Central District
SWIFT FINANCIAL, LLC,
Petitioner, v.
BRAND RESTAURANT GROUP INC.,
Respondent. |
Case No.: 24BBCP00001
Hearing Date: February 23, 2024 [TENTATIVE] ORDER RE: PETITION TO CONFIRM ARBITRATION AWARD |
BACKGROUND
Petitioner Swift Financial, LLC as servicing agent for WebBank (“Petitioner”) filed this petition on January 2, 2024, against Respondent Brand Restaurant Group Inc. d/b/a Kaviar Sushi Bar and Tigran Oganessian (“Respondents”). Petitioner seeks to confirm a contractual arbitration award.
The underlying action arises out of a Paypal Business Loan Agreement between WebBank (a PayPal service) and Tigran Oganessian (primary business owner) and Brand Restaurant Group Inc. and Kaviar Sushi Bar (borrower) for a $100,000 loan, which would be paid back in the total amount of $116,707.60.
The arbitration award was entered by the American Arbitration Association (“AAA”) by video and telephone conference on June 27, 2023. The arbitration award requires that Respondents pay to Petitioner the amount of $108,287.31. Petitioner seeks to have the award confirmed in the State of California pursuant to CCP § 1286 in the amount of $108,287.31.
Petitioner has filed proofs of service on January 16, 2024, showing that Brand Restaurant Group Inc. d/b/a Kaviar Sushi Bar and Tigran Oganessian were each served with the summons and complaint by substituted service on January 9, 2024.
The Court is not in receipt of an opposition brief from Respondents.
LEGAL STANDARD
CCP § 1285 states: “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 respondent all parties to the arbitration and may name as respondents any other persons bound by the arbitration award.”
CCP § 1285.4 requires the petition to:
(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 names of the arbitrators; and
(c) Set forth or have attached a copy of the award and the written opinion of the arbitrators, if any.
(CCP §1285.4.)
CCP §1286 states: “If a petition or response under this chapter is duly served and filed, the court shall confirm the award as made, whether rendered in this state or another state, unless in accordance with this chapter it corrects the award and confirms it as corrected, vacates the award or dismisses the proceeding.” CCP §1287.4 states that once confirmed, an award is enforceable as a judgment.
DISCUSSION
A. Service of the Arbitration Award
“The neutral arbitrator shall serve a signed copy of the award on each party to the arbitration personally or by registered or certified mail or as provided in the agreement.” (CCP § 1283.6.) CCP §1288 states: “A petition to confirm an award shall be served and filed not later than four years after the date of service of a signed copy of the award on the petitioner. A petition to vacate an award or to correct an award shall be served and filed not later than 100 days after the date of the service of a signed copy of the award on the petitioner.” “No petition may be served and filed under this chapter until at least 10 days after service of the signed copy of the award upon the petitioner.” (CCP § 1288.4.) Under CCP §1290.2, no less than 10 days’ notice must be provided to the responding party before any hearing on the confirmation petition.
The Court has reviewed the documents filed in this action. The Award of Arbitrators was served on all parties on June 27, 2023. (See Pet., Attachment 8c.) The Petition to Confirm Arbitration Award was filed on January 2, 2024. Service of the Petition on Respondents occurred at least 10 days after the Award of Arbitrator was served, and at least 10 days prior to this petition hearing date.
B. Merits of Petition to Confirm the Arbitration Award
An arbitration award is not directly enforceable until it is confirmed by a court and judgment is entered. (CCP § 1287.6; Jones v. Kvistad (1971) 19 Cal.App.3d 836, 840.) The court must confirm the award as made, unless it corrects or vacates the award, or dismisses the proceeding. (CCP § 1286; Valsan Partners Limited Partnership v. Calcor Space Facility, Inc. (1994) 25 Cal.App.4th 809, 818.) CCP § 1285.4 states the requirements of a petition.
The Petition complies with the section 1285.4 requirements.
The Petition includes a copy of the agreement to arbitrate (i.e., the underlying written agreement between the parties), which is attached as Attachment 4(b) to the petition.
The Petition sets forth the name of the arbitrator. The arbitration was conducted by Peg Donahue Hall on April 6, 2023. (Pet., ¶¶6-7.)
The Petition sets forth or provides a copy of the award and the written award of the arbitrator. (Pet., Attachment 8(c).) According to the arbitrator’s Award, Petitioner appeared and Respondents failed to appear to the arbitration hearing. The arbitrator reviewed the evidence and determined that Respondents owed to Petitioner $100,996.94 in damages, $1,428 in legal fees, $20 for Returned Item Fee, $67.37 for credit card surcharge as an expense for filing the arbitration, and $5,775 for arbitration fees. This totals $108,287.31. (Pet., Attachment 8C.)
According to the petition, Petitioner seeks confirmation of the Award and enter judgment according to it. (Pet., ¶10.) Petitioner also seeks interest at the statutory rate, $435 in costs of suit, $2,972.87 in attorney’s fees (if default), and prejudgment interest from the date of the award from June 1, 2023 to the date of entry of judgment. (Id.)
Thus, there is substantive merit to granting this petition.
CONCLUSION AND ORDER
Petitioner Swift Financial, LLC as servicing agent for WebBank’s petition to confirm the Award of Arbitrator is granted against Respondent Brand Restaurant Group Inc. d/b/a Kaviar Sushi Bar and Tigran Oganessian.