ORANGE COAST BUILDING SERVICES, INC. VS LIBRARY COURT COMMUNITY ASSOCIATION

ANALYSIS:

1. Background

On July 1, 2019, Plaintiff Orange Coast Building Services, Inc. (“Plaintiff”) filed an action for breach of contract against Defendant Library Court Community Association (“Defendant”).

On August 19, 2019, Defendant filed the instant Motion to Compel Arbitration (the “Motion”). To date, no opposition has been filed.

1. Legal Standard

“On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy and that a party thereto refuses to arbitrate such controversy, the court shall order the petitioner and the respondent to arbitrate the controversy if it determines that an agreement to arbitrate the controversy exists, unless it determines that: (a) The right to compel arbitration has been waived by the petitioner; or (b) Grounds exist for the revocation of the agreement.” (Code Civ. Proc., §§1281.2, subds. (a)-(b).) As with other types of agreements, “[t]he failure of the [party] to carefully read the agreement and the amendment is not a reason to refuse to enforce the arbitration provisions.” (Powers v. Dickson, Carlson & Campillo (1997) 54 Cal.App.4th 1102, 1115.) “California law, ‘like [federal law], reflects a strong policy favoring arbitration agreements and requires close judicial scrutiny of waiver claims.’” (Wagner Const. Co. v. Pacific Mechanical Corp. (2007) 41 Cal.4th 19, 31.) If the court orders arbitration, then the court shall stay the action until arbitration is completed. (See Code Civ. Proc., § 1281.4.)

1. Discussion

Defendant brings the instant Motion seeking to compel Plaintiff to submit to arbitration based on a Construction Agreement (the “Agreement”) entered into by the parties on or about May 23, 2018. (Mot., p. 3, Exh. A.) The Agreement contains an arbitration provision stating that “[a]ny controversy or claim arising out of or related to [the] Agreement, or breach thereof, shall be resolved by binding arbitration administered by the American Arbitration Association (‘AAA’) in accordance with AAA’s construction industry arbitration rules, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof…” (Id., Exh. A, p. 9, ¶ 10.) Plaintiff has not submitted an opposition to the instant Motion. Accordingly, Defendant has demonstrated the existence of an arbitration agreement and the Court finds that there is no defense to its enforcement.

Defendant also requests sanctions against Plaintiff in the amount of attorney’s fees incurred in moving to compel arbitration pursuant to Code of Civil Procedure section 128.5, subdivision (a). (Mot., p. 6.)

However, motions for sanctions under Section 128.5 must be requested by a separate motion. (Code Civ. Proc., § 128.5, subd. (f)(1)(A).) In addition, the party seeking sanctions under Section 128.5 must serve a copy of the motion on the opposite party at least 21 days before filing with the Court to allow that party to withdraw or correct the challenged pleading or motion. (Code Civ. Proc., § 128.5, subd. (f)(1)(B).) As Defendant has not demonstrated compliance with these requirements, its request for sanctions is DENIED.

1. Conclusion & Order

For the foregoing reasons, Defendant’s Motion to Compel Arbitration and Stay Action is GRANTED. The matter is to be arbitrated before the AAA. However, Defendant’s request for sanctions is DENIED.

Moving party is ordered to give notice.