Judge: Michael E. Whitaker, Case: 24SMCV02281, Date: 2024-08-20 Tentative Ruling

Case Number: 24SMCV02281    Hearing Date: August 20, 2024    Dept: 207

TENTATIVE RULING

MOTION

This case arises from a dispute concerning construction at the parking area for the Pepperdine Baseball Field located at 24255 Pacific Coast Highway.  On May 14, 2024, Plaintiff Bali Construction, Inc. (“Plaintiff”) filed suit against Defendants The Penta Building Group LLC (“Penta”); Safeco Insurance Company of America (“Safeco”); and Pepperdine University (“Pepperdine”), alleging eight causes of action for (1) breach of written contract; (2) breach of oral contract; (3) work, labor, and services rendered/agreed price; (4) work, labor, and services rendered/reasonable value; (5) unjust enrichment; (6) contractor’s license bond; (7) foreclosure of mechanic’s lien; and (8) equitable adjustment for delay and disruption.

On August 6, 2024, Pepperdine filed a Notice of Related Case, alerting the court to case number 24SMCV02545, filed on May 29, 2024 by Bergelectric Corp. against Penta and Pepperdine, also involving construction at the parking area for the Pepperdine Baseball Field located at 24255 Pacific Coast Highway.

Plaintiff now moves to stay the proceedings, pending the parties’ mediation and then arbitration proceedings.  Penta and Pepperdine have each filed separate partial oppositions, opposing a stay pending arbitration proceedings, but agreeing to a stay pending mediation.  Plaintiff replies, conceding that there is no agreement requiring arbitration under the current circumstances and reiterating the request to stay proceedings pending mediation.

ANALYSIS

The court has inherent power to stay proceedings in the interests of justice and to promote judicial efficiency. (Freiberg v. City of Mission Viejo (1995) 33 Cal.App.4th 1484, 1489.)  Trial judges have inherent powers to manage and fashion procedures to control litigation to ensure the orderly administration of justice. (Cottle v. Superior Court (1992) 3 Cal.App.4th 1367, 1376-1379.)

The subcontract between Plaintiff and Penta provides:

ARTICLE 11 DISPUTE RESOLUTION

11.1 INITIAL DISPUTE RESOLUTION lf a dispute arises out of or relates to this Agreement or its breach, the parties shall endeavor to settle the dispute first through direct discussions. If the dispute cannot be resolved through direct discussions, the parties shall participate in non -binding mediation under the Construction Industry Mediation Rules of the American Arbitration Association [or JAMS or through any other mutually agreed upon private mediator with construction industry experience] before recourse to any other form of binding dispute resolution. The location of the mediation shall be the location of the Project. Once a party files a request for mediation with the other party and with the American Arbitration Association, the parties agree to commence such mediation within thirty(30) days of filing of the request [or retaining such private mediator]. Either party may terminate the mediation at any time after the first session, but the decision to terminate must be delivered in person to the other party and the mediator. Engaging in non-binding mediation is a condition precedent to initiation of dispute resolution pursuant to Paragraph 11 .5.

…

11.5 DISPUTES BETWEEN CONTRACTOR AND SUBCONTRACTOR If consolidation of proceedings is not allowed under the terms of the Prime Contract, disputes or claims as between Subcontractor and Contractor arising from or related to this Agreement which are not resolved at mediation shall be submitted to binding arbitration.

(Romero Decl. ¶ 2.)

            Plaintiff concedes in Reply that consolidation of the proceedings is allowed under the Prime Contract, and therefore, binding arbitration is not required.

            Penta and Pepperdine both agree in their respective oppositions to stay the action pending resolution of contractual mediation proceedings.

CONCLUSION AND ORDER

            Therefore, the Court grants Plaintiff’s unopposed request to stay the action pending the completion of mediation proceedings.   

            Further, based upon the ruling to stay the action, the Court vacates the Case Management Conference set on September 19, 2024, and schedules a Status Conference re Completion of Mediation on February 26, 2025 at 8:30 A.M. in Department 207.  The parties shall file a Joint Report regarding the status of the mediation no later than 5 court days before the conference. 

            Plaintiff shall provide notice of the Court’s ruling and file the notice with a proof of service forthwith.   

DATED: August 20, 2024                                                      ___________________________

Michael E. Whitaker

                                                                                    Judge of the Superior Court