Harris v. Sandro

96 Cal. App. 4th 1310, 117 Cal. Rptr. 2d 910, 2002 Daily Journal DAR 3141, 2002 Cal. Daily Op. Serv. 2601, 2002 Cal. App. LEXIS 3142
CourtCalifornia Court of Appeal
DecidedMarch 21, 2002
DocketNo. B148018
StatusPublished
Cited by1 cases

This text of 96 Cal. App. 4th 1310 (Harris v. Sandro) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Sandro, 96 Cal. App. 4th 1310, 117 Cal. Rptr. 2d 910, 2002 Daily Journal DAR 3141, 2002 Cal. Daily Op. Serv. 2601, 2002 Cal. App. LEXIS 3142 (Cal. Ct. App. 2002).

Opinion

[1312]*1312Opinion

YEGAN, J.

Todd A. Harris appeals from a judgment confirming an arbitration award in favor of Rosalie M. Sandro and the Rosalie M. Sandro Revocable Trust dated September 27, 1991 (collectively Sandro). Harris contends the arbitrator exceeded his powers when he determined that Harris had no estate, title or interest in the property, failed to compel specific performance of the option agreement, and awarded attorney’s fees and costs to Sandro. Harris further contends the arbitrator committed misconduct by failing to provide a basis for the award. We affirm.

Sandro has requested that we impose sanctions of $11,062 against Harris and his counsel for pursuing a frivolous appeal. (Code Civ. Proc., § 907; Cal. Rules of Court, rule 26(a).) We agree that the appeal is frivolous and impose sanctions in the amount requested against Harris, Kevin J. Stack, and the law firm of Knapp, Petersen & Clarke, jointly and severally. We decline to impose sanctions against appellant’s cocounsel, Melbourne B. Weddle, because it appears Mr. Weddle performed no work in connection with the appeal.

Facts

Harris obtained an option to purchase land owned by Sandro. The option agreement provides: “Any dispute or claim in law or equity arising out of this contract or any resulting transaction shall be decided by neutral binding arbitration in accordance with the rules of the American Arbitration Association . . . .” The option agreement also provides: “Should any litigation be commenced between the parties to the Option to Purchase Agreement concerning the premises, this Option to Purchase Agreement, or the rights and duties of either in relation thereto, the party, Seller or Buyer, prevailing in such litigation shall be entitled to, in addition to such other relief as may be granted, a reasonable sum for attorneys’ fees to be determined by the court in such litigation or in a separate action brought for that purpose.”

A dispute arose concerning whether Harris had exercised the option. The matter was submitted to arbitration at Harris’s request. After hearing, the arbitrator denied Harris’s claim for specific performance of the option agreement and found that Harris had “no estate, title or interest in the property . . . .” The arbitrator further ruled: “No proof having been rendered, [Sandro’s] counterclaim [for quiet title] is also hereby denied.” Sandro was awarded her attorney’s fees and costs. The superior court confirmed the award and entered judgment in favor of Sandro. Harris appeals.

[1313]*1313 Discussion

The Appeal

As the courts of this state have repeatedly emphasized, the merits of a controversy that has been submitted to arbitration are not subject to judicial review. This means that we may not review the validity of the arbitrator’s reasoning, the sufficiency of the evidence supporting the award, or any errors of fact or law that may be included in the award. (Moncharsh v. Heily & Blase (1992) 3 Cal.4th 1, 11 [10 Cal.Rptr.2d 183, 832 P.2d 899].) Judicial review is severely limited because that result “vindicates the intentions of the parties that the award be final, and because an arbitrator is not ordinarily constrained to decide according to the rule of law . . . .” (Ibid.)

Code of Civil Procedure section 1286.2 sets forth a list of circumstances under which we may vacate an arbitrator’s award, including where “[t]he rights of the party were substantially prejudiced by misconduct of a neutral arbitrator,” (Code Civ. Proc., § 1286.2, subd. (a)(3)) and where, “[t]he arbitrators exceeded their powers and the award cannot be corrected without affecting the merits of the decision upon the controversy submitted.” (Code Civ. Proc., § 1286.2, subd. (a)(4).) “Unless one of the enumerated grounds exists, a court may not vacate an award even if it contains a legal or factual error on its face which results in substantial injustice.” (Marsch v. Williams (1994) 23 Cal.App.4th 238, 243-244 [28 Cal.Rptr.2d 402].) An arbitrator does not exceed his or her powers by making a legal or factual error or by giving erroneous reasons for an award. (Moncharsh v. Heily & Blase, supra, 3 Cal.4th at p. 28; see also Marsch v. Williams, supra, 23 Cal.App.4th at pp. 243-244.) “[A]n arbitrator’s failure to render express findings on disputed questions does not invalidate the award where, as here, the award ‘ “serves to settle the entire controversy.” (Sapp v. Barenfeld [1949] 34 Cal.2d 515, 522-523 [212 P.2d 233].)’ (Rodrigues v. Keller (1980) 113 Cal.App.3d 838 [170 Cal.Rptr. 349].)” (Luster v. Collins (1993) 15 Cal.App.4th 1338, 1345 [19 Cal.Rptr.2d 215]; see also Armendariz v. Foundation Health Psychcare Services (2000) 24 Cal.4th 83, 107 [99 Cal.Rptr.2d 745, 6 P.3d 669] [stating general rule that arbitrators are not required to provide written findings and conclusions].)

Each of Harris’s contentions on appeal runs afoul of these well-established limits on our power to review the arbitration award. The contentions that the arbitrator exceeded his powers by failing to compel specific performance of the option agreement, by determining that Harris had no estate, title or interest in the property, and by failing to give a “basis” for his decision are nothing more than claims that the award contains legal or [1314]*1314factual errors. We reject these contentions because the claimed errors simply are not subject to judicial review.

Harris contends the arbitrator exceeded his powers by issuing the “inconsistent” rulings that Harris had “no estate, title or interest in the property,” and that Sandro was not entitled to a judgment quieting her title in it. First, this is nothing more than a claim that the arbitrator erred in a legal ruling. We may not review the award for legal errors. (Moncharsh v. Heily & Blase, supra, 3 Cal.4th at p. 11.) Second, the arbitrator plainly did not exceed his powers. The option agreement provides for the arbitration of “[a]ny dispute or claim in law or equity arising out of this contract or any resulting transaction . ...” A dispute about whether Harris exercised his option arises out of the option agreement. The finding that he had “no estate, title or interest” in the property is rationally related to that dispute because, if Harris had effectively exercised the option, he would have had an interest in the property. (Advanced Micro Devices, Inc. v. Intel Corp. (1994) 9 Cal.4th 362, 367 [36 Cal.Rptr.2d 581, 885 P.2d 994] [arbitrator does not exceed powers if his ruling “bears a rational relationship to the underlying contract”].)

Nor can we conclude that the two rulings are inconsistent. The arbitrator found that Harris had no interest in the property, but declined to rule on the nature or extent of Sandro’s interest because she did not “render” sufficient “proof’ on her counterclaim for quiet title. A ruling that one person lacks an interest in real property is fully consistent with a ruling that the interest of another cannot yet be determined.

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Related

Harris v. Sandro
117 Cal. Rptr. 2d 910 (California Court of Appeal, 2002)

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96 Cal. App. 4th 1310, 117 Cal. Rptr. 2d 910, 2002 Daily Journal DAR 3141, 2002 Cal. Daily Op. Serv. 2601, 2002 Cal. App. LEXIS 3142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-sandro-calctapp-2002.