Abaya v. Spanish Ranch I, L.P.
189 Cal. App. 4th 1490
| Cal. Ct. App. | 2010Background
- Mobilehome park residents sued park owners for substandard maintenance of common areas and facilities.
- Many, but not all, leases included an ADR clause requiring arbitration; some residents were not bound by ADR.
- Defendants sought to compel arbitration or, alternatively, judicial reference under CCP §§ 638, 1281.2.
- The trial court denied both arbitration and judicial reference, citing risk of conflicting rulings on common issues.
- Defendants appealed and petitioned for writs of mandate; the appellate court previously addressed judicial reference in a related proceeding.
- Court concluded there is discretion to deny arbitration under § 1281.2(c) when there is a possibility of conflicting rulings on common issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May a court deny arbitration under §1281.2(c) due to possible conflicting rulings? | Residents argue conflict risk justifies denial of arbitration. | Park owners argue no or insubstantial conflict risk. | Yes; court may deny arbitration where conflicting rulings are possible. |
| Whether the dispute involves common issues of law or fact justifying denial of arbitration. | Plaintiffs contend common issues exist across ADR and non-ADR groups. | Defendants contend lack of sufficiently common issues to deny arbitration. | Yes; the action involves common issues, supporting denial of arbitration. |
Key Cases Cited
- Cronus Investments, Inc. v. Concierge Services, 35 Cal.4th 376 (Cal. 2005) (section 1281.2(c) supports avoiding inconsistent outcomes when some assert arbitrations)
- Henry v. Alcove Investment, Inc., 233 Cal.App.3d 94 (Cal. Ct. App. 1991) (abuse of discretion standard and conflict-avoidance in 1281.2(c))
- Fitzhugh v. Granada Healthcare & Rehabilitation Center, LLC, 150 Cal.App.4th 469 (Cal. Ct. App. 2007) (conflict risk scenario under 1281.2(c))
- Best Interiors, Inc. v. Millie & Severson, Inc., 161 Cal.App.4th 1320 (Cal. Ct. App. 2008) (relying on complaint allegations to assess conflict potential)
- Mercury Ins. Group v. Superior Court, 19 Cal.4th 332 (Cal. 1998) (abuse of discretion review standard for arbitration denial)
- Segal v. Silberstein, 156 Cal.App.4th 627 (Cal. Ct. App. 2007) (burden of proof in arbitration determination under 1281.2)