Judge: Mel Red Recana, Case: 23STCP03172, Date: 2024-11-18 Tentative Ruling
Case Number: 23STCP03172 Hearing Date: November 18, 2024 Dept: 45
Hearing date: November 18, 2024
Moving Party: Petitioner Torrance
Brumfield
Responding
Party: None
Motion
to Confirm Arbitration Award
The Court
considered the moving papers. No opposition was received.
The Court DENIES
Petitioner’s Motion to Confirm Arbitration Award.
Background
This matter arises from Petitioner
Torrance Brumfield (“Petitioner”) seeking to recover the unpaid balance on a
$50,000 promissory note between Petitioner and Respondents Ignatius Evans and
Earthtone Natural Kitchen & Market LLC (“Respondents”). (Petition, ¶ 5;
Brumfield Decl., ¶ 3.) Petitioner is a party to an Investor Profit Sharing
Agreement dated March 11, 2020 (“the Agreement”) with Respondents, which contains
a binding arbitration clause. (Id., ¶ 3.) In accordance with the Agreement, Petitioner
filed a Demand for Arbitration with AAA on March 8, 2023, pursuant to the
Commercial Rules of AAA (the “Rules”) and its Expedited Procedures in the Rules.
(Id., ¶ 5; Brumfield Decl., ¶ 3.) The Arbitration Demand was served on
Respondents by Mail in accordance with the Agreement and the Rules. (Id.;
Ybarra Decl., ¶ 2.) On April 24, 2023, AAA appointed Thomas P. Hanrahan as the
Arbitrator. (Id., ¶ 6; Ybarra Decl., ¶ 3.) Respondents did not file a
response to the Arbitration Demand. (Id., ¶ 7.)
A preliminary hearing was held on May 4,
2023, and Notice of the Preliminary Hearing was sent to Respondents by the AAA
via certified mail. (Petition, ¶ 7; Ybarra Decl., ¶ 4.) The Evidentiary hearing
was set to be held on June 21, 2023. (Id., ¶ 8; Ybarra Decl., ¶ 5.) On
May 19, 2023, the Arbitrator inquired of each party whether it wished to
proceed with oral testimony or submit the case for resolution on written
submissions. (Id., ¶ 9; Ybarra Decl., ¶ 6.) Petitioner advised that it
intended to rely on written submissions, but Respondents did not reply. (Id.)
Petitioner submitted evidence as
required by the schedule set forth in the Case Management Order No. 1, but
Respondents did not submit any evidence or respond to the Arbitration Demand.
(Ybarra Decl., ¶ 7.)
On June 26, 2023, the Arbitrator entered a
Final Award, deeming Petitioner the prevailing party and awarding Petitioner
the principal amount of $25,0000 and $8,166.67 in pre-judgment interest. (Petition,
¶ 11; Ybarra Decl., ¶ 8.) Petitioner was also awarded fees paid to AAA and the
Arbitrator, totaling $1,450. (Id.) In total, Petitioner was awarded
$45,542.00. (Id.; Ybarra Decl., Ex. 1.)
On June 3, 2024, Petitioner filed the
instant Motion to Confirm the Arbitration award. No opposition was filed.
Legal
Standard
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.) 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. (CCP §§ 1288,
1288.4.)
On the
merits, 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 section 1285.4 states 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.
(CCP § 1285.4.)
Discussion
Timeliness of the Petition
“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.” (CCP § 1288.) Here, a signed copy of the award was served on the
petitioner on June 26, 2023. (Ybarra Decl., ¶ 8.) The petition to confirm the award
was served and filed April 11, 2024, which is less than four years after June
26, 2023. Thus, the petition is timely.
Service of the Petition and Notice of Hearing
CCP
section 1290.4(a) requires the Petition and Notice of Hearing to be served on
Respondent “in the manner provided in the arbitration agreement for the service
of such petition and notice” or “[i]f the arbitration agreement does not
provide the manner in which such service shall be made . . . [s]ervice within
this State shall be made in the manner provided by law for the service of
summons in an action.” (CCP § 1290.4(a), (b).)
Here, Section
E of the Agreement states, “All notices shall be in writing and shall be deemed
served when personally delivered to the other Party, or when deposited in the
United States mail, certified, first-class postage prepaid, addressed to the
other Party’s principal place of business or to such other place as specified
or by the last known address.” (Brumfield Decl., Ex. A.) The petition was filed
on August 29, 2023. A proof of service filed on April 11, 2024, reflects
that the petition was served on Respondent Ignatius Evans by substituted
service on April 4, 2024. A proof of service filed on April 11, 2024, reflects
that the petition was served on Respondent Earthtone Natural Kitchen &
Market LLC by substituted service on April 3, 2024. The proof of service
indicates that service of the notice of hearing was made at the same time and
manner as service of the petition. Thus, service of the petition and notice of
hearing was proper.
Service of the Arbitration Award
CCP
section 1283.6 requires that “[t]he 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.)
The
petition states that a written award was made June 26, 2023. (Petition, ¶ 11.) A copy of the award is attached as Exhibit
A. The award provides that Respondents shall pay to Petitioner $54,542.00.
(Id., Ex. A.) The award is signed by arbitrator Thomas P. Hanrahan. (Id.) However,
Petitioner does not make clear that a signed copy of the award was served on
each party. Thus, Service of the Arbitration Award is not proper. However, the
Court will reach the Motion on the merits.
Confirmation of Arbitration Award
Here,
first, Petitioner attaches to the Petition as Exhibit B the Investor Profit
Sharing Agreement between the parties which includes an arbitration
provision. The agreement is signed by Petitioner and Respondents. Section
I of the agreement provides for arbitration of disputes arising out of the
agreement as follows:
In the event of any dispute under this Agreement, the
Parties first agree to resolve through binding arbitration in accordance with
the rules of the American Arbitration Association. Written notice of the demand
for arbitration shall be filed by the party seeking arbitration with the other
Party and with the American Arbitration Association within a reasonable period
of 180 days. All decisions of the arbitrator shall be final, and judgment may
be entered upon it in accordance with applicable law in any court having
jurisdiction thereof.”
(Petition, Ex. B.)
Second,
the Petition states that Thomas P. Hanrahan was the arbitrator for this
matter. (Petition, ¶
6.)
Third,
the petition attaches as Exhibit A the written award and opinion of the
arbitrator. Therefore, the petition meets the requirements under CCP section
1285.4.
However, Petitioner failed to establish
that the arbitrator served 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.
The Court therefore DENIES Petitioner’s Motion
to Confirm the Arbitration Award. However, the Court will grant the instant
motion if Petitioner can provide proof of the arbitrator’s service of the award
on each party as provided in the agreement.
Moving Party to give notice within seven (7)
days.
It
is so ordered.
Dated: November 18, 2024
_______________________
MEL RED RECANA
Judge of the
Superior Court