206 Cal. App. 4th 1383
Cal. Ct. App.2012Background
- Cinel sought to compel arbitration under a contractual arbitration clause in the PPM relating to GNH members, including Bama.
- Two AAA arbitrations were initiated; disputes over who is claimant and fee obligations.
- Arbitration fees were not fully paid; the panel terminated the arbitration for nonpayment on July 7, 2010.
- Cinel opposed continued arbitration, while Bama and Christopher sought to compel arbitration again.
- In 2011 the trial court denied, and Cinel appealed from Bama’s petition to compel arbitration, which the court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration right was waived by the parties' conduct | Cinel argues no waiver; there remained a valid agreement. | Bama argues waiver by collective failure to pay and agreement to proceed. | Waiver found; parties' collective repudiation foreclosed arbitration. |
| Whether termination for nonpayment affected the panel's jurisdiction and merits | Cinel contends termination did not provide a merits ruling and arbitration could proceed upon payment. | Bama contends nonpayment terminated arbitration and foreclosed return absent payment. | Appellate court did not need to address panel jurisdiction; waiver barred arbitration. |
| Whether the trial court properly denied Barna's petition to compel arbitration | Cinel opposes reopening arbitration, preferring trial on merits. | Bama seeks to compel arbitration based on existing agreement. | Order affirmed; arbitration rights were waived and cannot be compelled. |
Key Cases Cited
- Victoria v. Superior Court, 40 Cal.3d 734 (Cal. 1985) (arbitration not compelled absent agreement)
- St. Agnes Medical Center v. PacifiCare of California, 31 Cal.4th 1195 (Cal. 2003) (waiver standards and conduct-based waiver analysis)
- U.S. v. Park Place Associates, Ltd., 563 F.3d 907 (9th Cir. 2009) (knowledge, inconsistent acts, and prejudice show waiver)
- Central Valley General Hospital v. Smith, 162 Cal.App.4th 501 (Cal. App. 2008) (arbitration waiver and repudiation concepts)
- Service Employees International Union, Local 1021 v. County of San Joaquin, 202 Cal.App.4th 449 (Cal. App. 2011) (waiver and arbitration rights may arise from conduct)
- Sink v. Aden Enterprises, Inc., 352 F.3d 1197 (9th Cir. 2003) (illustrative of loop in relinquishing arbitration rights under FAA)
- Lifescan, Inc. v. Premier Diabetic Services, 363 F.3d 1010 (9th Cir. 2004) (courts may defer to arbitral fee allocations as ordered)