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