Manufactured Networks, Inc. v. Vana Life Foods, L.P.

PETITION TO CONFIRM ARBITRATION AWARD

 

MOVING PARTY: Petitioner Manufactured Networks, Inc.

RESPONDING PARTY(S): Unopposed

STATEMENT OF MATERIAL FACTS AND/OR PROCEEDINGS:

Petitioner Manufactured Networks, Inc., arbitrated a dispute against Respondent Vana Life Foods, L.P., based on Respondent’s failure to pay amounts owed for the purchase of specialty food products.

An arbitration was held on July 10, 2024, before the Hon. Jackson Lucky. Respondent did not appear at the arbitration. At the conclusion of the arbitration, the Arbitrator awarded Petitioner damages of $216,651.82, plus prejudgment interest, attorney fees, costs, and interest.

Petitioner now moves to confirm the arbitration award. Respondent has not filed an opposition. 

TENTATIVE RULING:

Petitioner is ordered to file and serve a [Proposed] Judgment within 15 days incorporating the Arbitrator’s Award, and as consistent with this ruling.

Moving party to give notice, unless waived.  

DISCUSSION:

Petition to Confirm Arbitration Award

A. Legal Standard

Any party to an arbitration may petition the court to confirm an arbitration award. (CCP § 1285.) If a petition to confirm an arbitration award is duly served and filed, the court must confirm the award as made, unless the court corrects or vacates the award pursuant to a response to the petition or a petition to correct or vacate the award. (CCP § 1286; Valsan Partners Limited Partnership v. Calcor Space Facility, Inc. (1994) 25 Cal.App.4th 809, 818 [no authority to alter terms of award absent petition to correct].) 

A petition to confirm an arbitration award must set forth the substance of or attach the arbitration agreement, include the name of the arbitrator, and attach a copy of the award and the written opinion of the arbitrator, if any. (CCP § 1285.4.) The petition must be served no earlier than 10 days, but no later than 4 years, after service of the award on the petitioner. (CCP §§ 1288, 1288.4.)  

The petition, written notice of the time and place of the hearing on the petition, and any other papers upon which the petition is based must be served in the manner provided in the arbitration agreement for service of such petition and notice. (CCP § 1290.4(a).) If the arbitration agreement does not specify the required manner of service and the person being served has not yet appeared in the proceeding and has not yet previously been served, then service of the petition within the State must be made in the same manner as service of a summons and complaint pursuant to CCP section 415.10 et seq. (CCP § 1290.4(b)(1).) At least 10 days’ notice of the date set for the hearing on the petition must be given. (CCP §1290.2.) Service outside the state must be made by registered or certified mail, return receipt requested. (CCP § 1290.4(b)(2).) The proof of service must show such mailing together with the return receipt signed by the person served. (Id.) If service is made by registered or certified mail, return receipt requested, the hearing on the petition may not be held until at least 30 days after the date of such notice. (Id.)

B. Analysis

Petitioner moves to confirm the arbitration award following binding arbitration. Respondent did not appear at the arbitration and has not filed an opposition to this petition. 

Respondent is a Washington limited partnership. (Menges Decl. ¶ 3.) The Washington Secretary of State lists Krishan Walia at the Registered Agent at 113 Cherry St. #93103, Seattle, Washington 98104-2205. (Id.) The Cherry Street address is the address listed on the subject arbitration agreement underlying this matter and the address used for service of the arbitration award sought to be confirmed in this action. (See Petition, Exhs. 4(b) & 8(c).)

On September 25, 2024, Petitioner served the petition, summons, and related documents via certified mail return-receipt requested to Vana Life Foods, LP c/o Krishan Walia at 113 Cherry St. #93103, Seattle, Washington 98104-2205. (Guzman Decl. ¶¶ 3, Exhs. 1 & 2.) The mailing included the notice of the rescheduled 12/19/24 hearing. (Id.) 

On November 6, 2024, “out of an abundance of caution,” Petitioner resent the petition and related documents to the same address, again by certified mail. (Guzman Decl. ¶ 5, Exhs. 4, 5.) Then again, on November 10, 2024, Petitioner sent the petition documents again, this time via Federal Express. (Id., Exh. 6, 7.) For all three mailings, Petitioner received confirmation of receipt via signature. (Id., Exhs. 3, 5, 7.) Therefore, the court deems service of the petition sufficient. 

Pursuant to a “Master Sourcing and Manufacturing Agreement” and “Release and Waiver of Liability Agreement,” Respondent purchased certain specialty food products from Petitioner and became indebted to Petitioner in the principal amount of $216,651.82.” (Petition ¶ 5.) Vana failed to pay Manufactured for the Goods. (Id.) The Master Sourcing and Manufacturing Agreement contained an arbitration provision requiring binding arbitration of any dispute “relating to the agreement.” (Id., Exh. 4(b), ¶ 24.)

Petitioner made a demand and an arbitration was held on July 10, 2024 before Arbitrator Hon. Jackson Lucky. (Id. ¶ 6.) Respondent did not appear at the arbitration. That same date, the Arbitrator issued an award in Petitioner’s favor for monetary damages of $216,651.82 plus “interest at the legal rate until fully satisfied,”  prejudgment interest of $26,707.50, attorney’s fees of $16,570.00, and costs of $4,119.60. (Id., Exh. 8(c), ¶ 11.)

Petitioners have therefore provided the arbitration agreement, the name of the arbitrator, and the Arbitration Award. (CCP § 1285.4.) The petition has also been served no earlier than 10 days, but no later than 4 years, after service of the award on the petitioner. (CCP §§ 1288, 1288.4.)  

Accordingly, Petitioner’s Petition to Confirm Arbitration Award is GRANTED. 

IT IS SO ORDERED.

Dated:   December 19, 2024 ___________________________________

Judge of the Superior Court

FN 1 -   “By statute in California, interest on a money judgment begins to accrue on the date the judgment is entered.” (Felczer v. Apple Inc. (2021) 63 Cal. App. 5th 406, 411; § 685.020.) Generally, interest accrues on the “principal amount” of a judgment at a rate of 10 percent. (§ 685.010, subd. (a).) Thus here, interest accrues at $59.36 per day, from July 10, 2024, until fully satisfied. (($216,651.82 x 0.10) / 365 = $59.36.)