STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY VS ACE USA GROUP

Tentative Rulings

Case Number: 20STCP02397    Hearing Date: December 02, 2020    Dept: 26

State Farm v. Ace USA Group, et al.

PETITION TO CONFIRM ARBITRATION AWARD

(CCP § 1285)

TENTATIVE RULING:

Petitioner State Farm Mutual Automobile Insurance Company’s Petition to Confirm Arbitration Award is CONTINUED TO FEBRUARY 3, 2021 AT 10 AM IN DEPARTMENT 26 IN THE SPRING STREET COURTHOUSE.

ANALYSIS:

Petitioner State Farm Mutual Automobile Insurance Company (“Petitioner”) filed the instant Petition to Confirm Arbitration Award against Ace USA Group (“Respondent”) on July 29, 2020. To date, no opposition 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 Respondent “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).)

No proof of service of the Petition or Notice of Hearing has been filed with the Court. Therefore, the Court cannot find that it has personal jurisdiction over the Respondent or that Respondent has notice of the current hearing date.

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

Petitioner also fails to demonstrate service of the arbitration award as required by Code of Civil Procedure section 1283.6. No proof of service is attached to the Arbitration Award. (Pet., Exh. B). Alternatively, service of the arbitration award with the Petition is sufficient to overcome any irregularity in service of the Petition by the arbitrator. (Murry v. Civil Service Employees Ins. Co. (1967) 254 Cal.App.2d 796, 799-800.) However, as Petitioner has not demonstrated service of the Petition, there is no proof that the arbitration award was served concurrently.

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. The Award was issued on February 27, 2019, making the Petition timely filed. (Pet., ¶11 and Exh. B.) However, without proof of service the Court cannot find the Petition was timely served.

Finally, a party may seek a court judgment confirming an arbitration award by filing and serving a petition no more than four years after the award is served.  (Code Civ. Proc., § 1288.) The petition must be served at least ten (10) days after service of the signed copy of the award. (Code Civ. Proc., § 1288.4.) Without proof of service of the Petition or Award, the Court cannot find the requirements of Code of Civil Procedure, sections 1283.6, 1288 or 1288.4 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:

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 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.) The Petition complies with the above requirements. It sets forth the nature of the agreement to arbitrate, which is an Automobile Subrogation Arbitration Agreement. (Pet., ¶10.) It also sets forth the name of the Arbitrator (Nichole Menzer) and attaches a copy of the Award to the Petition. (Pet., Exh. B.) The Petition demonstrates that on December 17, 2019, the arbitrator issued an award requiring Respondent to pay Petitioner $3,415.93. Accordingly, Petitioner has complied with the requirements of Code of Civil Procedure, section 1285.4.

Attorney’s Fees and Costs

To the extent Petitioner requests attorney’s fees and costs according to proof (Pet., p. 3:20-21), those are permitted on a petition to confirm arbitration award. (Code Civ. Proc., § 1293.2; MBNA America Bank, N.A. v. Gorman (2006) 147 Cal.App.4th.Supp. 1, 7.) Petitioner may file a memorandum of costs pursuant to Cal. Rules of Court Rule 3.1700 and a noticed motion for attorney’s fees pursuant to Cal. Rules of Court Rule 3.1702.

Conclusion

Based on the foregoing, the Petition to Confirm Arbitration Award is CONTINUED TO FEBRUARY 3, 2021 AT 10 AM IN DEPARTMENT 26 IN THE SPRING STREET COURTHOUSE. AT LEAST 16 COURT DAYS PRIOR TO THE CONTINUED HEARING DATE, PETITIONER IS TO FILE PROOF OF SERVICE OF THE PETITION AND NOTICE OF HEARING DATE ON RESPONDENT. FAILURE TO DO SO MAY RESULT IN THE PETITION BEING PLACED OFF CALENDAR OR DENIED.

Moving party to give notice.