Judge: Lynette Gridiron Winston, Case: 23PSCP00375, Date: 2023-11-09 Tentative Ruling

Case Number: 23PSCP00375    Hearing Date: December 20, 2023    Dept: 6

CASE NAME:  Alaa Latif, M.D., F.A.C.P., et al. v. Pomona Valley Hospital Medical Center

Order to Show Cause Re: Why Pre-Judgment Interest Should Be Awarded In The Judgment When Not Awarded By The Arbitrator 

TENTATIVE RULING

The Court AWARDS Respondent prejudgment interest in the amount of $56,372.08. The Court will sign the amended proposed judgment attached to Respondent’s brief as Exhibit 1. Upon the Court signing and filing the final judgment, Respondent is directed to serve the final judgment upon Petitioners and file proof of service of same. 

            Respondent is ordered to give notice of the Court’s ruling within five calendar days of this order. 

BACKGROUND

This is a breach of contract action. On August 17, 2023, Petitioners Alaa Latif, M.D., F.A.C.P. (Dr. Latif) and Alaa Latif, M.D., Inc. (Latif Inc.) (collectively, Petitioners), filed a petition to correct/vacate arbitration award in connection with an arbitration against Respondent Pomona Valley Hospital Medical Center (Respondent). On November 9, 2023, the Court denied the petition and confirmed the arbitration award. 

On November 17, 2023, Respondent submitted a proposed judgment. On November 22, 2023, the Court set an Order to Show Cause Re: Why Pre-Judgment Interest Should Be Awarded In The Judgment When Not Awarded By The Arbitrator and invited the parties to submit briefs ten calendar days before the hearing. Petitioners and Respondent both filed their respective briefs on December 8, 2023. 

LEGAL STANDARD

A person who is entitled to recover damages certain, or capable of being made certain by calculation, and the right to recover which is vested in the person upon a particular day, is entitled also to recover interest thereon from that day, except when the debtor is prevented by law, or by the act of the creditor from paying the debt. This section is applicable to recovery of damages and interest from any debtor, including the state or any county, city, city and county, municipal corporation, public district, public agency, or any political subdivision of the state. 

(Code Civ. Proc., § 3287, subd. (a).) 

            “Section 3287 applies to arbitration awards. A prevailing party in arbitration is entitled to prejudgment interest as of the date of the final award to entry of judgment. [Citation.]” (Tenzera, Inc. v. Osterman (2012) 205 Cal.App.4th 16, 21.) 

DISCUSSION

            Upon reviewing the parties’ respective briefs and the legal authorities cited therein, the Court finds that Respondent is entitled to prejudgment interest from the date of the final arbitration award, which in this case was May 9, 2023. (Tenzera, Inc., supra, 205 Cal.App.4th at p. 21.) The fact the arbitrator here did not necessarily address or consider the issue of prejudgment interest does not preclude the Court from awarding prejudgment interest following the final arbitration award. (See Pierotti v. Torian (2000) 81 Cal.App.4th 17, 27-28.) Awarding such prejudgment interest here is not inconsistent with this final arbitration award because it is not a substantive revision of the award and does not add an element of damages absent from the award. (See Maaso v. Signer (2012) 203 Cal.App.4th 362, 377.) 

In its brief, Respondent offers to amend its request for prejudgment interest to the date of the final arbitration award on May 9, 2023 to the date the Court confirmed the arbitration award on November 9, 2023, for a total of $56,372.08. Petitioners also contend that the total amount of prejudgment interest Respondent may recover here is $56,372.08. Finding that the parties agree Respondent is entitled to prejudgment interest, that they agree on that amount, and that the amount is calculated correctly, the Court will award Respondent prejudgment interest in that amount. 

            Based on the foregoing, the Court AWARDS Respondent prejudgment interest in the amount of $56,372.08. The Court will sign the amended proposed judgment attached to Respondent’s brief as Exhibit 1. 

CONCLUSION

The Court AWARDS Respondent prejudgment interest in the amount of $56,372.08. The Court will sign the amended proposed judgment attached to Respondent’s brief as Exhibit 1. Upon the Court signing and filing the final judgment, Respondent is directed to serve the final judgment upon Petitioners and file proof of service of same.

Respondent is ordered to give notice of the Court's ruling within five calendar days of this order.