California Parking Services, Inc. v. Soboba Band of Luiseño Indians
197 Cal. App. 4th 814
| Cal. Ct. App. | 2011Background
- CPS contracted with Soboba Band in March 2007 to provide valet parking at Soboba Casino for three years.
- Soboba Band terminated the contract in June 2009 after performance problems.
- On August 31, 2009, CPS sought to compel arbitration under paragraph 7 of the agreement.
- The arbitration clause requires arbitration and AAA rules, with an explicit exclusion of Rule 48(c).
- Soboba Band demurred to arbitration citing sovereign immunity; the trial court denied CPS's petition.
- The trial court held the Rule 48(c) exclusion meant no waiver of sovereign immunity, so arbitration could not be compelled.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does arbitration waive Soboba's sovereign immunity? | CPS argues the arbitration clause waived immunity. | Soboba Band contends exclusion of Rule 48(c) shows no waiver. | No; immunity not waived. |
| Does excluding Rule 48(c) defeat waiver despite arbitration clause? | CPS asserts waiver through contract terms. | Soboba Band's exclusion of Rule 48(c) rejects court jurisdiction. | Waiver not established. |
| Is there a limited waiver to compel arbitration but not enforce an award? | Argues court can compel arbitration regardless of award enforceability. | Arbitration awards require enforcement via courts; limited waiver not supported. | Not recognized; cannot compel arbitration without admission of court enforceability. |
| Does choice-of-law affect waiver analysis? | California law would interpret waiver. | Federal law governs waiver notwithstanding state-law choice. | Federal law governs waiver; choice-of-law provision does not create waiver. |
Key Cases Cited
- Kiowa Tribe of Okla. v. Manufacturing Technologies, Inc., 523 U.S. 751 (1998) (waiver of immunity requires clear and unequivocal consent to suit)
- C & L Enterprises, Inc. v. Citizen Band Potawatomi Tribe of Oklahoma, 532 U.S. 411 (2001) (arbitration clause can constitute a waiver when language shows clear intent)
- Big Valley Band of Pomo Indians v. Superior Court, 133 Cal.App.4th 1185 (2005) (strong presumption against waivers of immunity)
- Oglala Sioux Tribe v. C & W Enterprises, Inc., 542 F.3d 224 (2008) (accepts federal-law analysis for waiver with arbitration provisions)
- D.H. Blair & Co., Inc. v. Gottdiener, 462 F.3d 95 (2006) (arbitration awards require court enforcement; futile otherwise)