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Juarbe v. Jumbleberry Enterprises USA CA2/1
B314040
| Cal. Ct. App. | Mar 1, 2023
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Background

  • Nutri‑burn, LLC contracted with Jumbleberry Enterprises under a Master Service Agreement (MSA) and an Insertion Order dated December 10, 2018; both documents list Nutri‑burn as Advertiser and Alberto Juarbe as Advertiser Owner/Representative, and Juarbe signed both.
  • MSA included clauses that (1) defined the “parties” to include the advertiser’s undersigned representative/owner, (2) made the undersigned signatory personally jointly and severally liable for unpaid invoices, and (3) contained an arbitration provision specifying forums and allowed service "electronically."
  • Jumbleberry performed services and invoiced Nutri‑burn $128,820.23; Jumbleberry demanded arbitration (ICDR/AAA) on June 5, 2019; Nutri‑burn and Juarbe did not participate despite receiving notices.
  • Arbitrator issued a partial/final award in favor of Jumbleberry on November 5, 2019, finding Nutri‑burn and Juarbe jointly/severally liable and awarding $136,845.23 (fees included); award was served November 6, 2019 (by email and Federal Express).
  • Juarbe filed a petition to vacate the award on February 10, 2020 (filed within 100 days) but did not serve it until August 4, 2020; trial court held his petition untimely because statute requires both filing and service within 100 days, confirmed the award, and entered judgment; this appeal followed.

Issues

Issue Plaintiff's Argument (Juarbe) Defendant's Argument (Jumbleberry) Held
Timeliness of petition to vacate Petition filed within 100 days, so timely; service requirement not triggered because award was not properly served Award was properly served per MSA (including email); statute requires both filing and service within 100 days Petition untimely: filing alone insufficient — both filing and service must occur within 100 days; Juarbe served >5 months late, so court precluded from vacating award
Whether Juarbe was personally bound by the MSA Signed only as Nutri‑burn’s representative; did not intend personal liability MSA expressly makes the undersigned representative/owner a party and personally liable Juarbe personally bound: MSA unambiguously included the undersigned representative as a party and imposed personal liability
Validity of alternative service (email/overnight) for award Award wasn’t served as §1283.6 requires (personal or registered/certified mail) MSA authorizes alternate service methods including electronic delivery and overnight service; §1283.6 permits service “as provided in the agreement” Service by email was authorized by the MSA; Juarbe received award by email, so statutory clock ran
Mutuality/consideration defense to enforceability MSA unenforceable against him for lack of mutuality and lack of consideration Contract provided mutual promises (services vs. payment and guaranty); even if no separate consideration to Juarbe, surety/guarantor principles apply MSA enforceable: mutuality present and/or guarantor rules (Civ. Code §2792) render separate consideration unnecessary

Key Cases Cited

  • Moncharsh v. Heily & Blase, 3 Cal.4th 1 (1992) (arbitral finality and limited judicial review of private arbitration awards)
  • Richey v. AutoNation, Inc., 60 Cal.4th 909 (2015) (California favors alternative dispute resolution)
  • Moshonov v. Walsh, 22 Cal.4th 771 (2000) (judicial review of arbitration awards limited to statutory grounds)
  • Founding Members of the Newport Beach Country Club v. Newport Beach Country Club, Inc., 109 Cal.App.4th 944 (2003) (contract interpretation governed by objective written terms)
  • Bleecher v. Conte, 29 Cal.3d 345 (1981) (mutuality of obligation doctrine explained)
  • Darby v. Sisyphian, LLC, 87 Cal.App.5th 1100 (2023) (deadline rules: requests to vacate must comply with 100‑day limit)
  • Douglass v. Serenivision, Inc., 20 Cal.App.5th 376 (2018) (response requesting vacatur still subject to statutory 100‑day deadline)
  • Law Finance Group, LLC v. Key, 67 Cal.App.5th 307 (2021) (sections 1288/1288.2 establish firm 100‑day deadline for vacatur requests)
Read the full case

Case Details

Case Name: Juarbe v. Jumbleberry Enterprises USA CA2/1
Court Name: California Court of Appeal
Date Published: Mar 1, 2023
Docket Number: B314040
Court Abbreviation: Cal. Ct. App.