Louise
Gardens of Encino Homeowners' Assn., Inc. v. Truck Ins. Exchange, Inc. (2000) 82 Cal.App.4th 648, 98 Cal.Rptr.2d
378
[No.
B132007. Second Dist., Div. Three. Jul. 25, 2000.]
LOUISE
GARDENS OF ENCINO HOMEOWNERS' ASSOCIATION, INC., Plaintiff and Appellant, v. TRUCK INSURANCE EXCHANGE, INC.,
Defendant and Appellant.
(Superior
Court of Los Angeles County, No. BS055258, Carolyn B. Kuhl, Judge.)
(Opinion
by Croskey, J., with Klein, P. J., and Aldrich, J., concurring.)
COUNSEL
Wolf,
Rifkin & Shapiro, Marc E. Rohatiner and Whitney B. Wilds for Plaintiff and Appellant.
Berger,
Kahn, Shafton, Moss, Figler, Simon & Gladstone and Allen L. Michel for Defendant and Appellant. [82
Cal.App.4th 651]
OPINION
CROSKEY,
J.-
In
a case which can only be described as procedurally unusual, the appellant, Louise Gardens of Encino Homeowners'
Association, Inc., a California corporation (hereafter the Association) appeals from a judgment entered upon an
order confirming an arbitration award, which confirmation had been requested by the Association.
The
respondent, Truck Insurance Exchange, Inc. (Truck), has cross-appealed on the ground that the trial court's
confirmation order erroneously failed to explicitly declare that the Association had no legal basis to attack
the arbitration award which was the subject of the confirmation proceedings.
As
we explain, the undisputed record reflects that the Association received and accepted the benefits of the
underlying arbitration award, failed to file any petition to vacate or correct that award, and then petitioned
to confirm it. Given those circumstances, we conclude that the Association may not now attack the award. With
respect to Truck's cross-appeal, the record reflects that there is still pending in the trial court a
declaratory relief action filed by Truck which will resolve all of the issues between the parties not disposed
of by our holding in this matter. Therefore, we will affirm the judgment.
Factual
and Procedural Background fn.
1
On
November 30, 1993, Truck renewed a policy of insurance covering the Association's 30-unit condominium. That
policy covered certain damage which resulted about 45 days later in the Northridge earthquake of January 17,
1994. The Association made a claim under the policy and, as might have been anticipated, a dispute arose between
Truck and the Association as to the correct amount of the loss.
Truck,
based on its investigation, calculated the loss at $1,413,757.83 without regard to certain deductibles and
adjustments called for under the policy. In December of 1995, Truck tendered the net amount due under its loss
calculation. The Association, however, evaluated its loss in excess of [82 Cal.App.4th 652] $2.5 million.
Given this substantial difference of over $1 million, the Association demanded an appraisal. Under standard
policy provisions required by Insurance Code section 2071, fn.
2 when there is a disagreement between the insurer and the insured as to the amount of the
loss, then either party may demand an appraisal. Once that demand has been made, then each party shall select a
"competent and disinterested appraiser" and then they shall select a "competent and disinterested
umpire." The appraisers shall appraise the loss. If they cannot agree, then they will submit their
differences to the umpire. An award agreed to by any two of the three "shall determine" the amount of the loss.
This procedure is mandated by the statute. Truck's policy contained such a provision although with slightly
different wording. fn.
3
Following
the Association's demand, Truck designated one Louis Heilbron as its appraiser. As required, he made certain
disclosures about his prior associations and activities with the Farmers Insurance Group (of which Truck is a
part). The record reflects that during the three years immediately preceding his appointment by Truck, Heilbron
had served as an appraiser designated by the Farmers Insurance Group on 15 occasions, 11 of which involved
appraisals which were then still pending. In addition, he had served four times during the same period as a
consultant to the law firm which was then representing Truck and is currently its counsel in these proceedings.
Based
on such disclosures, the Association demanded that Heilbron be replaced as Truck's designated appraiser. This
demand was rejected and, on [82 Cal.App.4th 653] August 9, 1996, the Association filed a petition for
removal of appraiser (In re Appraisal, etc. (Super. Ct. L.A. County, 1996, No. BS040723)). Claiming that
Heilbron's disclosures demonstrated that he was not a "disinterested" party, the Association asked the court to
disqualify him from serving as Truck's designated appraiser.
Truck
responded to this petition by noting that appraisers empowered to determine the value of a loss under a fire
policy are treated as arbitrators within the meaning of Code of Civil Procedure section 1280 et seq. fn.
4 (See Klubnikin v. California Fair Plan Assn. (1978)
84 Cal.App.3d 393,
398 [148 Cal.Rptr. 563].) It then argued that while section 1281.9, subdivision (c)(1), provided the method for
disqualifying a neutral arbitrator, fn.
5 Heilbron had not been appointed as the neutral umpire, but rather had been designated as
a party's appraiser. Therefore, it was former section 1282, subdivision (e), which provided the remedy.
fn.
6
That
section limited disqualification of an arbitrator to those grounds set out in section 170.1, which is applicable
to disqualification of judges. Truck argued that the past and then current association between Truck and
Heilbron did not warrant his disqualification and removal under the standards set out in section 170.1.
The
trial judge agreed and, on September 9, 1996, denied the Association's petition and ordered both parties to
choose a neutral umpire no later than September 20, 1996. fn.
7 This was done and, as we discuss below, the appraisal process went forward. The Association
did not further pursue this [82 Cal.App.4th 654] special proceeding (i.e., In re Appraisal, etc.,
supra, No. BS040723). It did not appeal the trial court's decision nor did it seek writ relief.
Thereafter,
Truck made demands under the policy for the Association (1) to make its representatives available for
examination under oath to discuss matters related to the claimed loss and (2) to produce for inspection,
examination and audit the Association's books and records. Claiming that the Association had failed to comply
with such requests, and had even instructed its project engineer not to discuss with Truck relevant information
regarding repairs to the damaged property, Truck asserted that the "cooperation" clauses of the policy had been
violated. On August 1, 1997, Truck filed an action against Association for declaratory relief (Truck Ins.
Exchange, Inc. v. Louise Gardens of Encino Homeowner's Assn., Inc. (Super. Ct. L.A. County, 1997, No.
BC175693); hereafter the declaratory relief action). Truck sought in that action a judgment declaring that the
Association's breach of the cooperation provisions of the policy estopped it from any right to obtain an
appraisal of its claimed earthquake loss, and that the policy was voidable, thus releasing Truck from any
obligation to pay any benefits at all. That action is still pending in the trial court, but has been stayed
pending resolution of the issues raised in this appeal. fn.
8
In
the meantime, the appraisal of the loss which the Association had requested went forward and, on November 10,
1997, the appraisal panel issued an "Appraisal of Insurance Loss Award" in the sum of $1,760,215.79 "without
consideration of or reduction in value for deductible amounts, amounts paid or other provisions of the ...
Policy of Insurance which might affect the amount of the insurer's liability thereunder." fn.
9 On January 20, 1998, Truck paid to the Association the sum of $440,000 which represented the
difference between the appraisal award and the amount previously paid by Truck.
fn. 10
Although
this appeal necessarily reflects that the Association is decidedly unhappy with the outcome of the appraisal,
the record demonstrates that it [82 Cal.App.4th 655] did not at any time move to vacate the award, much
less do so within the 100-day period specified in section 1288. fn.
11 Instead, on December 16, 1997, the Association filed a cross-complaint against Truck in the
declaratory relief action for breach of contract and breach of the implied covenant of good faith. By that
pleading, it sought to enforce the appraisal award. Among the damages which the Association sought to
recover was the allegedly unpaid sum of $360,000 which, the cross-complaint alleged, was the amount then due,
"as established by the appraisal." While it also sought other relief as well, and alleged that Truck
acted in bad faith in its handling of this claim, it is clear that the cross-complaint sought to recover on the
appraisal award.
Finally,
on January 15, 1999, over 14 months after its receipt of the appraisal award, the Association filed the petition
(No. B5055258) which has led to this appeal. fn.
12 On that date, it filed a "Petition to Confirm Appraisal Award and Request for Entry of
Judgment." Although the Association had received and accepted full payment of the amount of the award
approximately a year earlier and, as discussed above, had filed a cross-complaint seeking to enforce the award,
it now alleged in its petition to confirm that it sought to convert the appraisal award into a judgment from
which it could then take an appeal from the trial court's ruling on September 9, 1996, in In re Appraisal,
etc., supra, No. BS040723, denying the Association's petition to remove Truck's designated appraiser.
fn.
13
Truck
opposed this petition on the grounds that it was sought for the improper purpose of attacking the very award the
Association sought to [82 Cal.App.4th 656] confirm. The trial court, however, found no basis to deny the
petition fn.
14 and, on April 7, 1999, granted it. On April 30, 1999, a judgment was entered by the court
which provided that "the award dated November 10, 1997, signed by the appraiser, Louis Heilbron, and the umpire,
Hon. Alfred L. Margolis is confirmed in all respects. This is not a money judgment and only confirms the
matters determined by the appraisal." (Italics added.)
The
Association filed a timely appeal and Truck filed a timely cross-appeal.
Contentions
of the Parties
Each
of the parties makes a number of arguments, but we need only consider those which are immediately dispositive of
this appeal. The Association contends that it may, by this appeal, attack the trial court's ruling, in a
different special proceeding, which denied the Association's petition to remove Truck's designated appraiser. It
contends that such denial was merely an intermediate nonappealable ruling which may be reviewed on an appeal
taken after a judgment has been entered on a confirmation order.
Truck
responds that the Association's failure to file a petition to vacate the award as well as its subsequent
acceptance of the award and cross-complaint seeking to enforce it, preclude it from now attacking the award;
furthermore, as the award was properly confirmed, the judgment thereafter entered on that confirmation must be
affirmed.
By
its cross-appeal Truck raises two principal arguments. First, it argues that the judgment of confirmation should
have been more explicit about its scope and effect. Truck contends that the judgment should have made clear that
(1) the Association is not entitled to another appraisal, (2) the Association failed to timely seek vacation of
the first award and (3) the trial court [82 Cal.App.4th 657] did not err when it denied the petition to
remove Truck's appraiser. In other words, the judgment should have expressly stated that the Association was
judicially bound by the award as an upper limit of its claimed loss.
The
second argument which appears to be advanced by Truck seems to be that the judgment erroneously failed to hold
that the Association had breached the policy's cooperation clauses and that Truck was thereby excused from any
performance under the policy; that is, Truck is entitled to reclaim all of the money it has paid under the
policy.
As
we explain, our resolution of the Association's appeal will effectively deal with Truck's first argument on its
cross-appeal. As to its second argument, those are issues which are now before the trial court in the
declaratory relief action and must be initially dealt with in that proceeding.
Discussion
1.
Standard of Review
[1]
Both parties agree that only legal issues are presented by this appeal and they primarily involve the
interpretation of relevant statutes. Thus, the applicable standard of review is de novo. (Kurtz v. Calvo
(1999)
75 Cal.App.4th 191,
193 [89 Cal.Rptr.2d 99].) In that regard, well-settled principles govern us.
[2]
The fundamental goal of statutory construction is to ascertain the intent of the Legislature so as to effectuate
the purpose of the statute. (§ 1859; People v. Pieters (1991)
52 Cal.3d 894,
898 [276 Cal.Rptr. 918, 802 P.2d 420].) The words of a statute ordinarily provide the most reliable indication of
legislative intent. (Pacific Gas & Electric Co. v. County of Stanislaus (1997)
16 Cal.4th 1143,
1153 [69 Cal.Rptr.2d 329, 947 P.2d 291].) If there is no ambiguity in the language of a statute, we presume the
Legislature meant what it said and the plain meaning governs. (People v. Loeun (1997)
17 Cal.4th 1, 9
[69 Cal.Rptr.2d 776, 947 P.2d 1313].) When one part of a statute contains a term or provision, the omission of that
term or provision from another part of the statute indicates that the Legislature intended to convey a different
meaning. (People v. Gardeley (1996)
14 Cal.4th 605,
621-622 [59 Cal.Rptr.2d 356, 927 P.2d 713]; Lazar v. Hertz Corp. (1999)
69 Cal.App.4th 1494,
1504 [82 Cal.Rptr.2d 368].) A court cannot insert or omit words to cause the meaning of a statute to conform to a
presumed intent that is not expressed. (§ 1858; California Teachers Assn. v. Governing Bd. of Rialto Unified
School Dist. (1997)
14 Cal.4th 627,
633 [59 Cal.Rptr.2d 671, 927 P.2d 1175].) [82 Cal.App.4th 658]
2.
Statutory Rules for Arbitrations Preclude the Association's Attack on the Appraisal Award
[3]
An agreement to conduct an appraisal contained in a policy of insurance constitutes an "agreement" within the
meaning of section 1280, subdivision (a), fn.
15 and therefore is considered to be an arbitration agreement subject to the statutory
contractual arbitration law. (Appalachian Insurance Co. v. Rivcom Corp. (1982)
130 Cal.App.3d 818,
824 [182 Cal.Rptr. 11].) Those statutory provisions represent a comprehensive statutory scheme for the arbitration
of disputes. As such, the Legislature's use of the word "shall" in the statutory provisions which we now discuss
makes them mandatory, not precatory. (Cole v. Antelope Valley Union High School Dist. (1996)
47 Cal.App.4th 1505,
1511-1513 [55 Cal.Rptr.2d 443].) As a result, they are dispositive of the arguments advanced by the Association.
It
is clear from the Association's brief that it seeks to avoid the result of the appraisal which established the
actual amount of its loss from the Northridge earthquake. That award was issued on November 10, 1997. The
Association's options upon such issuance are set out in the arbitration statutes. A party to an arbitration may
seek to vacate or correct the award or to have it confirmed. (§ 1285.) Upon a petition seeking any of those
results, the court must confirm the award, unless it either vacates or corrects it. (§ 1286.)
fn.
16
One
of the recognized grounds for the vacation of the appraisal award is the failure of an arbitrator who was
subject to disqualification upon the grounds set out in former section 1282, subdivision (e) (now § 1281.9,
subd. (e)) to disqualify himself or herself as required by the statute. (§ 1286.2, subd. (f).) However, such
relief must be sought in a timely manner. A court may not vacate an award unless a petition requesting such
relief has been duly filed and served (§ 1286.4, subd. (a)) not later than 100 days after the date of service of
a signed copy of the award upon the petitioning party. (§ 1288.)
As
we have already noted, the Association did not file a petition to vacate the award at any time, much less within
the mandatory 100 days, despite the [82 Cal.App.4th 659] fact that it apparently claimed at the time the
award was made (and now contends) that Truck's designated arbitrator, Heilbron, should have disqualified himself
or been disqualified by the court. However, the only action the Association ever took to raise this objection
was to file a preappraisal petition (in a separately filed special proceeding) for an order removing that
arbitrator. When the trial court refused to do so, the Association did not seek appellate relief. Thus, at the
time of its receipt of the award, the Association clearly had knowledge of the claimed basis for the
arbitrator's disqualification. Even if the Association is correct that direct appellate relief for the adverse
ruling on its removal petition was not available, that would not excuse its failure to file and serve a timely
motion to vacate on that ground.
Our
reading of the statutory scheme which we have outlined above compels the conclusion that a party to an
arbitration may not circumvent the 100-day time requirement in which to seek the vacation of an award by
attempting to raise his or her objections to the award in an appeal from the judgment entered following an order
of confirmation. Indeed, as we explain below, if a timely petition to vacate had been filed, its denial
would have directly and necessarily led to entry of a confirmation order which, in turn, would have led to an
appealable judgment. In that circumstance, the issues which the Association now seeks to raise could have been
considered.
A
party who fails to timely file a petition to vacate under section 1286 may not thereafter attack that award by
other means on grounds which would have supported an order to vacate. (Knass v. Blue Cross of California
(1991)
228 Cal.App.3d 390,
393-396 [279 Cal.Rptr. 124].) In Knass, the insured had sued his medical insurer and the matter had been
submitted to binding arbitration. After the award was issued, the insured did not petition the court to vacate the
award within 100 days after it was served, but later filed an appeal from the postconfirmation judgment. The court
held that "Knass waived his opportunity to challenge the award by allowing the 100-day period to expire. The fact
the award was reduced to a judgment does not resurrect his opportunity to challenge it." (Id. at p. 394.)
The
Knass court explained its reasoning in the following terms: "In order to comply with the purpose of
expeditious resolution of disputes through arbitration, time limits in which to challenge arbitration awards
must be strictly enforced. [Citations.] Permitting a party to wait until after judgment to challenge an award
would undermine the purpose of arbitration proceedings—to resolve disputes quickly. The requirement that a
petitioner challenge an award within the 100-day limit 'places a burden upon those who would attack the award to
act promptly or acquiesce in its enforcement.' [Citation.]." (Knass v. Blue Cross of California,
supra, 228 Cal.App.3d at p. 395.) [82 Cal.App.4th 660]
Applying
the principles of statutory construction which we have summarized above, the Knass court concluded:
"Although section 1287.4 fn.
17 allows an appeal from a judgment confirming an arbitrator's award, we find no indication
that the section contemplates allowing a party to bypass the procedures which provide for limited review by the
superior court.... [¶] The arbitration statute is clear. A party to an arbitration proceeding must challenge an
award under section 1288 by a petition to vacate or correct the award within 100 days of service of the award.
An appeal of the judgment confirming the award may not be used to circumvent the prescribed time allowed to
petition for vacation or correction of award." (Knass v. Blue Cross of California, supra, 228
Cal.App.3d at pp. 395-396; see also Davis v. Calaway (1975)
48 Cal.App.3d 309,
311 [121 Cal.Rptr. 570].)
Clearly,
the method adopted by the Association to attack the appraisal award does not comport with the statutory scheme
which has been put in place by the Legislature. As section 1286 explicitly provides, if a court does not vacate
or correct an award (or dismiss the proceeding), it must confirm it. That is what happened here. Indeed, it was
upon the Association's petition that such confirmation occurred. We agree with the reasoning in Knass and
hold that the Association cannot avoid the consequences of its failure to file a timely petition to vacate by
appealing from the postconfirmation judgment.
We
summarily reject the Association's argument that this was the only way in which it could raise on appeal the
claimed error of the trial court in denying its initial petition to remove Truck's arbitrator for failing to
disqualify himself. It would not, as the Association argues, have been a useless act to file a timely petition
to vacate the award. In fact, that was the only proper procedure to follow under the statute. While it is
true that no appeal would lie until a judgment had been entered, such a judgment would have followed from a
denial of the Association's petition to vacate. fn.
18 As section 1286 plainly and expressly states, if a petition to vacate is not granted, then
the court "shall confirm the award as made." (Italics added.) Thus, the Association's only remedy, which
it obviously chose not to adopt, was to file a timely petition to vacate the award, then appeal from the
judgment entered after the order of confirmation which the court was statutorily bound to make in the event of a
denial of the vacation petition. [82 Cal.App.4th 661]
3.
The Association's Postaward Conduct Also Precludes Attack on the Appraisal Award
[4]
Following issuance of the appraisal award in November of 1997, the Association not only did not follow the
prescribed statutory procedures for attacking the award, but it filed an action (i.e., a cross-complaint to
Truck's declaratory relief action) to enforce the award and, a month later, accepted Truck's payment of the
balance due as specified by the award.
We
agree with Truck that such action constituted an adoption and ratification of the appraisal award which also
precludes its appeal of the judgment entered thereon. (Trollope v. Jeffries (1976)
55 Cal.App.3d 816,
822-824 [128 Cal.Rptr. 115].) In Trollope, one party accepted payment of a $128,000 interim arbitration
award and later, after the amount due was reduced by the final award and was confirmed by the trial court, appealed
from the resulting judgment. The court held that the principles applicable to acceptance of the benefits of a
judgment and the resulting waiver of the right to appeal therefrom applied with equal force to an arbitration
award. (Id. at p. 824.) "The theory behind the 'acceptance of benefits' rule is that if a person voluntarily
acquiesces in or recognizes the validity of a judgement or decree, or otherwise takes a position inconsistent with
the right of appeal therefrom, he thereby impliedly waives his right to have such judgment, order or decree
reviewed by an appellate court. [Citations.] Accordingly, since arbitration is for the benefit of both parties, it
would be incongruous to hold that a party can accept the award and the payment thereunder and then attack the award
on appeal." (Ibid.)
We
see no reason not to apply this principle here as an additional basis for rejection of the Association's
procedurally ineffective attempt to appeal from a judgment entered following the confirmation (for which the
Association had petitioned) of an award made by an appraisal which the Association had itself originally
demanded.
Conclusion
For
all of the reasons discussed above, we will reject the Association's appeal and affirm the judgment. In view of
this conclusion, we have no reason to reach or discuss the Association's claimed error by the trial court in
denying its original petition to remove Truck's designated appraiser. The appraisal award will thus become final
and binding on both parties as a measure of the cash value of the loss sustained by the Association as a result
of the Northridge earthquake. We believe this result necessarily disposes of Truck's first contention with
respect to its cross-appeal so we have no occasion to further address that issue. [82 Cal.App.4th 662]
With
respect to Truck's second contention raised under its cross-appeal, it is not appropriate for us to go beyond
what we have already stated and held. There are a number of issues raised by Truck's pending declaratory relief
action which, upon our issuance of a remitittur in this matter, will go forward and be tried. We believe that
our decision in this appeal can and should address only the finality and enforceability of the appraisal award.
That issue is now put to rest. We need not and do not go beyond that issue. The remaining issues between the
parties must be resolved by the trial court in the declaratory relief action.
Disposition
The
judgment is affirmed. Truck shall recover its costs on appeal.
Klein.
P. J., and Aldrich, J., concurred.
FN 1. The
facts which we recite are not disputed by the parties and are established by the pleadings and documents included
in the record on appeal. We are presented only with issues of law.
FN 2. Since
its enactment in 1949, Insurance Code section 2071 has directed that the standard form for fire insurance policies
include a specific appraisal provision to settle disagreements concerning the amount of the claimed loss. That
provision is set forth in the statute: "In case the insured and this company shall fail to agree as to the actual
cash value or the amount of loss, then, on the written demand of either, each shall select a competent and
disinterested appraiser and notify the other of the appraiser selected within 20 days of such demand. The
appraisers shall first select a competent and disinterested umpire; and failing for 15 days to agree upon
such umpire, then, on request of the insured or this company, such umpire shall be selected by a judge of a court
of record in the state in which the property covered is located. The appraisers shall then appraise the loss,
stating separately actual cash value and loss [as] to each item; and failing to agree, shall submit their
differences, only, to the umpire. An award in writing, so itemized, of any two when filed with this company shall
determine the amount of actual cash value and loss...." (Ins. Code, § 2071, italics added.)
FN 3. Truck's
policy contained the following appraisal provision: "If we and you disagree on the value of the property or the
amount of loss, either may make written demand for an appraisal of the loss. In this event, each party will select
a competent and impartial appraiser. The two appraisers will select an umpire. If they cannot agree, either
may request that selection be made by a judge of a court having jurisdiction. The appraisers will state separately
the value of the property and amount of loss. If they fail to agree, they will submit their differences to the
umpire. A decision agreed to by any two will be binding. Each party will: a. Pay its chosen appraiser; and b. Bear
the other expenses of the appraisal and umpire equally. If there is an appraisal, we will still retain our right to
deny the claim." (Italics added.)
FN 4. Unless
otherwise indicated, all statutory references are to the Code of Civil Procedure.
FN 5. Section
1281.9, subdivision (c)(1) provides: "(c)(1) If the proposed neutral arbitrator complies with subdivision
(a) [which spells out the requirements and procedures for disclosure by a neutral arbitrator], the proposed
neutral arbitrator shall be disqualified on the basis of the disclosure statement after any party entitled
to receive the disclosure serves a notice of disqualification, within 15 calendar days after service of the
disclosure statement." (Italics added.)
FN 6. Former
section 1282, subdivision (e), then provided, in relevant part: "An arbitrator shall disqualify himself or herself,
upon demand of any party to the arbitration agreement made before the conclusion of the arbitration proceedings, on
any of the grounds specified in Section 170.1 for disqualification of a judge."
In
1997, the Legislature amended section 1281.9 to add a subdivision (e) which replaced subdivision (e) of section
1282 and now provides: "(e) An arbitrator shall disclose to all parties the existence of any grounds specified
in Section 170.1 for disqualification of a judge; and, if any such ground exists, shall disqualify himself or
herself upon demand of any party made before the conclusion of the arbitration proceeding. However, this
subdivision does not apply to arbitration proceedings conducted under a collective bargaining agreement between
employers and employees or their respective representatives."
FN 7. In
announcing its decision, the trial court emphasized that Heilbron had never served as an advocate or expert witness
on behalf of the Farmers Insurance Group and that no evidence of actual bias was presented; prior service as a
party designated appraiser was not, in and of itself, enough to warrant disqualification.
FN 8. On
October 23, 1998, Truck moved for summary adjudication in the declaratory relief action that the Association had
breached it duties to Truck under the policy thereby rendering it voidable and excusing counterperformance. This
motion was denied and Truck thereafter petitioned us for a writ of mandate. We summarily denied that petition on
June 23, 1999 (Truck Ins. Exchange, Inc. v. Louise Gardens of Encino Homeowner's Assn., Inc. (June 23, 1999,
B132128) [nonpub. opn.]).
FN 9. The
award was signed by Truck's designated appraiser, Louis Heilbron, and the neutral umpire, the Honorable Alfred L.
Margolis.
FN 10. Truck
states in its brief that such payment was made "subject to [Truck's] rights in the already pending declaratory
relief case." However, we are not provided with any record citation reflecting such a reservation. In any event,
the legal implications of such payment and the asserted reservation may be matters for consideration by the trial
court in the declaratory relief action.
FN 11. Section
1288 provides: "A petition to confirm an award shall be served and filed not later than four years after the date
of service of a signed copy of the award on the petitioner. A petition to vacate an award or to correct an award
shall be served and filed not later than 100 days after the date of the service of a signed copy of the
award on the petitioner." (Italics added.)
FN 12. It
should be noted that this trial court case number is different than the one assigned to the Association's removal
petition (In re Appraisal, etc., supra, No. BS040723) which had been filed on August 9, 1996, and
denied on September 9, 1996, and from which no appeal was taken or writ presented.
FN 13. In
the final paragraph of this petition, the Association alleges: "Respondent has already paid Petitioner the full
amount of the Award. Petitioner is informed and believes, and thereon alleges, that the amount awarded
represents only a portion of what Petitioner was entitled to and that had the Petition to Disqualify been granted
and had Respondent appointed a disinterested appraiser, Petitioner would have received substantially more than what
was awarded. Ultimately, to the extent the appeal is successful and if required to do so, Petitioner will return to
Respondent any amounts paid by Respondent as a result of the Award which Respondent claims Petitioner is not
entitled to." (Italics added.)
FN 14. The
trial court noted that section 1286 (see fn. 16, post) appeared to compel an order of confirmation as "no
one is arguing the award should be vacated or corrected." The court also expressed some frustration with the
arguments presented by counsel: "The Court: Look, this is so simple to me, and you both are making it so
complicated. If somebody comes in and there is an award, and there is nothing wrong with the award, why shouldn't
the court confirm the award? [¶] The court should confirm the award even if it has been paid, because there might
be collateral consequences to that down the road. What the court is saying is okay, they have made an award. I
confirm the award. That is the amount. [¶] In this case it is just an appraisal amount. It is not a judgment to pay
an amount. But nobody in the future — what I am saying when I am confirming the award is nobody in the future can
contest this is the amount [¶] It is blessed by the court. That part of it is done. That is it. That is all. But
frankly, to think that one can petition to confirm an award and then appeal as aggrieved from the confirmation of
the award, is very unusual to me. I will just leave it at that. [¶] And I am just doing what CCP 1286 says. It is
very simple, it is very straightforward."
FN 15. Section
1280, subdivision (a), provides, in relevant part: " 'Agreement' [as used in this title] includes but is not
limited to agreements providing for valuations, appraisals and similar proceedings ...."
FN 16. Section
1286 provides: "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." (Italics added.)
FN 17. Section
1287.4 provides: "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."
FN 18. Had
its petition to vacate been granted there would, of course, have been no problem as far as the Association's
interests were concerned.
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