DARREN ENENSTEIN VS JOHN SPAHI

Tentative Rulings

Case Number: 19STCP02540    Hearing Date: December 16, 2019    Dept: 94

Erenstein v. Spahi, et al.

PETITION TO CONFIRM ARBITRATION AWARD

(CCP § 1285)

TENTATIVE RULING:

Petitioner Darren Enenstein, former Trustee of the Breeze Trust’s Petition to Confirm Arbitration Award is GRANTED. PROPOSED JUDGMENT TO BE FILED WITHIN TEN (10) DAYS.

ANALYSIS:

On March 12, 2019, an arbitrator issued an Arbitration Award pursuant to stipulation in favor of Darren Enenstein, former Trustee of the Breeze Trust (“Petitioner”) and against John Spahi and Allied Estates, Inc. (“Respondents”). On June 17, 2019, Petitioner filed the instant Petition to Confirm Arbitration Award (the “Petition”). The matter initially came for hearing on October 21, 2019, at which time the Court continued it to allow Petitioner to demonstrate compliance with the requirements of Code of Civil Procedure, section 1290.4. On October 21, 2019, Petitioner filed a Declaration of Diligence. On October 22, 2019, Petitioner filed a Notice of Continuance of Hearing. To date, no response has been filed.

Legal Standard

Per Code of Civil Procedure section 1285, “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 respondent all parties to the arbitration and may name as respondents any other persons bound by the arbitration award.”

Per Code of Civil Procedure section 1285.4, “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 arbitrator; and (c) Set forth or have attached a copy of the award and the written opinion of the arbitrators, if any.”

Per Code of Civil Procedure section 1286, “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 proceeding.”

Discussion

Service of the Petition and Notice of Hearing

Code of Civil Procedure, section 1290.4 requires the Petition and Notice of Hearing to be served on Respondents “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.” (Code Civ. Proc., § 1290.4, subds. (a), (b).)

Petitioner filed proof of service demonstrating service of the Petition and notice of hearing on Respondents by substitute service. As the arbitration agreement does not provide for a particular method of service, service must comply with the requirements for service of a summons. The proofs of service filed on July 30, 2019 indicate that the Summons, Petition and Notice of Hearing were served on July 18, 2019 by leaving the papers with “John Doe” at 201 Ocean Avenue, #1809P, Santa Monica, California. (Proofs of Service, ¶¶2-5.) “John Doe” is described at the guard who refused the process server entry. (Id. at ¶5.) The papers were thereafter mailed to Respondents on July 19, 2019 to the service address. (Ibid.)

As discussed in the earlier hearing on October 21, 2019, this service does not satisfy the requirements for service of a summons. Code of Civil Procedure section 415.20 allows for service by leaving a copy at the person’s “dwelling house, usual place of abode, usual place of business, or usual mailing address” only “[i]If a copy of the summons and complaint cannot with reasonable diligence be personally delivered to the person to be served.” (Code Civ. Proc., § 415.20, subd. (b).)

On October 21, 2019, Petitioner filed a Declaration of Diligence demonstrating multiple attempts to personally serve Respondent. (Decl. of Diligence, filed 10/21/19.) Petitioner, therefore, has now demonstrated compliance with the requirements of Code of Civil Procedure, section 1290.4.

Service of the Arbitration Award (CCP §§ 1283.6, 1288)

This also demonstrates service of the arbitration award as required by Code of Civil Procedure section 1283.6. No proof of service is attached to the Arbitration Stipulation or Order (Pet., Attachments 7(a) and 8(c)), but service of the Arbitration Stipulation or Order in conjunction with the instant Petition satisfies the statutory requirements.

Under Code of Civil Procedure section 1288, a petition to confirm arbitration must be filed and served no more than four years after the award was served. Here, the Petition has been shown to be timely filed and served.

Therefore, the Court finds that the requirements of Code of Civil Procedure, sections 1283.6 and 1288 have been satisfied.

Confirmation of the Arbitration Award

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.) 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.) Code of Civil Procedure, section 1285.4 states a petition under this chapter shall:

1. 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.

2. Set forth the names of the arbitrators.

3. Set forth or have attached a copy of the award and the written opinion of the arbitrators, if any.

(Code Civ. Proc., § 1285.4.) The Petition complies with the above requirements. It sets forth the nature of the agreement to arbitrate. (Petition, ¶4.) It also sets forth the name of the Arbitrator (Hon. Jacqueline Connor (Ret.)) and attaches a copy of the Award to the Petition. (Petition, Attachments 7(a) and 8(c).) The Petition demonstrates that on March 12, 2019, the arbitrator issued an award requiring Respondents to pay Petitioner $23,788.35 and finding that Respondents are obligated to defend and indemnify Petitioner for any reasonable attorney’s fees, costs, charges, and obligations incurred in the future as a result of Petitioner’s service as Trustee of the Breeze Trust. Accordingly, Petitioner has complied with the requirements of Code of Civil Procedure, section 1285.4.

Conclusion

Based on the foregoing, the Petition to Confirm Arbitration Award is GRANTED. PROPOSED JUDGMENT TO BE FILED WITHIN TEN (10) DAYS.

Moving party to give notice.