Judge: Michael P. Linfield, Case: 23STCP01216, Date: 2023-10-12 Tentative Ruling

Case Number: 23STCP01216    Hearing Date: October 12, 2023    Dept: 34

SUBJECT:        Petition to Confirm Contractual Arbitration Award

Moving Party: Petitioner Morris Reaves

Resp. Party:    None

The Petition is GRANTED in part.

The Arbitration Award is CONFIRMED.

Attorney’s fees, costs, and prejudgment interest are AWARDED in the total amount of $16,105.23 in favor of Petitioner and against Respondent.

BACKGROUND:

        On April 17, 2023, Petitioner Morris Reaves (“Petitioner”) filed Judicial Council Form ADR-106, Petition to Confirm Contractual Arbitration Award (“Petition”) against Respondent Benavides Builders, Inc. (“Respondent”).

        On September 15, 2023, Petitioner filed: (1) Memorandum of Points and Authority (“Memorandum”); (2) Proposed Order; and (3) Notice of Hearing.

        No opposition or other response has been filed to the Petition.

ANALYSIS:

I.          Legal Standard

“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 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, subds. (a)–(c).)

“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 proceedings.” (Code Civ. Proc., § 1286.)

“If an award is confirmed, judgment shall be entered in conformity therewith. The judgment so entered has the same force and effect as, and is subject to all the provisions of law relating to, a judgment in a civil action of the same jurisdictional classification; and it may be enforced like any other judgment of the court in which it is entered, in an action of the same jurisdictional classification.” (Code Civ. Proc., § 1287.4.)

II.       Discussion

On November 30, 2022, the Arbitrator, Kirk D. Yake, awarded a “Final Award of Arbitrator” in the total amount of $164,079.44 in favor of Petitioner and against Respondent. (Proposed Judgment, Exh. A, pp. 1, 9–10.) The award was comprised of $106,000.00 for disgorgement of payment, $36,414.44 in net damages for breach of contract, and $21,665.00 in attorney’s fees. (Ibid.) The Parties were ordered to bear their own costs. (Ibid.)

        On April 17, 2023, Petitioner filed the Petition. Petitioner requests: (1) confirmation of the award and entry of judgment according to it; (2) prejudgment interest from November 30, 2022 at the statutory rate; (3) costs of suit in the amount of $515.00; and (4) attorney’s fees in the amount of $397.50. (Petition, Item 10.)

        Petitioner argues: (1) that the Court is authorized to confirm an arbitration award upon petition of a party to the arbitration; (2) that Petitioner is entitled to judgment awarding attorney’s fees and costs pursuant to the agreement to arbitrate; (3) that Petitioner is entitled to prejudgment interest; and (4) that Respondent will be properly noticed and served the Petition and supporting papers. (Memorandum, pp. 4:6–7, 5:1–2, 5:16, 6:1–2.)

        Petitioner followed all the requirements of Code of Civil Procedure sections 1285, 1285.4, and 1286. As the Court is not correcting the award, vacating the award, or dismissing the proceedings, the Court must confirm the award as made.

        As Petitioner is the prevailing party and there is an applicable attorney’s fees provision, Petitioner is entitled to additional attorney’s fees and costs incurred during the post-award, pre-judgment period. (Petition, Attachment 4(b), Attachment, Section 11; Code Civ. Proc., §§ 1032, subds. (a)(4), (b), 1033.5, subd. (a)(10)(B), 1293.2; see also Marcus & Millichap Real Estate Inv. Brokerage Co. v. Woodman Inv. Grp. (2005) 129 Cal.App.4th 508, 513.)

However, the fees and costs must be reasonable. Here, Petitioner requests an additional $2,250.00 in fees (six hours of work at $375.00 per hour) and an additional $690.08 in costs. While the hourly rate is reasonable, a review of the invoice indicates that the number of hours and costs requested are excessive. For example, more than 3.5 hours are claimed for the combined acts of drafting this very simple, unopposed petition and its related documents. Similarly, “costs” are claimed for various items that are not costs charged by the Court or otherwise allowable as costs. The Court will allow 4.0 hours of work at the requested hourly rate (totaling $1,500.00 in fees) and $500.00 in costs.

Finally, as the issue in this case involves contractual damages (certain damages which appear to have been liquidated and other damages which appear to have been unliquidated prior to the Final Award of Arbitrator), Petitioner is now entitled to the requested relief of prejudgment interest from the date of the arbitration award to the date of judgment. (Civ. Code, § 3287, subds. (a), (b); see Tenzera, Inc. v. Osterman (2012) 205 Cal.App.4th 16, 21–22 [“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.”].) Further, as Petitioner correctly argues, the attorney’s fees portion of the Final Award of Arbitrator is allowable in this calculation of prejudgment interest. (Britz, Inc. v. Alfa-Laval Food & Dairy Co. (1995) 34 Cal.App.4th 1085, 1107 [“The arbitration award was the contractual equivalent of a judgment in respondents’ favor. In the context of a judicial judgment, it is clear that interest after judgment accrues as to the entire award, including attorney fees.”].) Petitioner correctly calculates the correct amount of prejudgment interest to be $14,205.23, which is based on a damages award of $164,079.44, an interest rate of 10% for a contract claim, and 316 days from date of entry of arbitration award (November 30, 2022) to date of entry of judgment (October 12, 2023).

        The Court GRANTS in part the Petition. 

The Court CONFIRMS the Arbitration Award.

        The Court AWARDS $1,400.00 in attorney’s fees, $500.00 in costs, and $14,205.23 in prejudgment interest favor of Petitioner and against Respondent.

III.     Conclusion

The Petition is GRANTED in part.

The Arbitration Award is CONFIRMED.

        Attorney’s fees, costs, and prejudgment interest are AWARDED in the total amount of $16,105.23 in favor of Petitioner and against Respondent.