Pagett v. Hawaiian Insurance

45 Cal. App. 3d 620, 119 Cal. Rptr. 536, 1975 Cal. App. LEXIS 1714
CourtCalifornia Court of Appeal
DecidedFebruary 28, 1975
DocketCiv. 44099
StatusPublished
Cited by7 cases

This text of 45 Cal. App. 3d 620 (Pagett v. Hawaiian Insurance) 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
Pagett v. Hawaiian Insurance, 45 Cal. App. 3d 620, 119 Cal. Rptr. 536, 1975 Cal. App. LEXIS 1714 (Cal. Ct. App. 1975).

Opinion

Opinion

ALLPORT, J.

Petitioners appeal from the denial of their amended petition for order compelling arbitration under section 1281.2 of the Code of Civil Procedure. The appeal lies. (Code Civ. Proc., § 1294, subd. *622 (a); Esparza v. State Farm Mut. Auto. Ins. Co., 257 Cal.App.2d 496, 498, fn. 1 [65 Cal.Rptr. 245].)

Contention

It is contended by petitioners that, because the petition alleges the existence of a written agreement to arbitrate a controversy, that a party thereto refuses to arbitrate and there is no finding that the right to compel arbitration has been waived or that grounds exist for revocation of the agreement, an order compelling arbitration is mandatory even though the claimed arbitrable issue itself may be without substantive merit.

Discussion

For reasons to be subsequently stated, we conclude that the amended petition is substantively meritless and subject to being denied by the appropriate tribunal, be it a court or an arbiter. We turn first to the procedural question of which of the two should perform that function in this case.

A written self-executing agreement to submit a present or future controversy to arbitration is valid and enforcible. (Code Civ. Proc., § 1281; Titan Enterprises, Inc. v. Armo Construction Inc., 32 Cal.App.3d 828, 830 [108 Cal.Rptr. 456].) On petition of a party to an arbitration agreement alleging the existence of a written agreement to arbitrate a controversy, the court shall order arbitration, if the court determines that an agreement to arbitrate the controversy exists unless there has been a waiver of that right or grounds exist for revocation of the agreement. (Code Civ. Proc., § 1281.2.) In Gustafson v. State Farm Mut. Auto. Ins. Co., 31 Cal.App.3d 361, 365 [107 Cal.Rptr. 243], it was held that “Code of Civil Procedure section 1281.2 and the cases cited above make it clear (1) that waiver of the right to compel arbitration is a preliminary question which should be decided by the trial court considering a petition to compel arbitration, . . .” By analogy it would appear clear that under this section the existence of an agreement to arbitrate the controversy is also a preliminary question to be determined by the court before an order compelling arbitration can be made.

Petitioners rely upon the recent cases of Van Tassel v. Superior Court, 12 Cal.3d 624 [116 Cal.Rptr. 505, 526 P.2d 969], and Orpustan v. State Farm Mut. Auto, Ins. Co., 7 Cal.3d 988 [103 Cal.Rptr. 919, 500 P.2d *623 1119], in support of their contention that the court had no alternative in the instant case but to order arbitration. We do not agree. While there is broad language in these cases from which it can be argued that an order compelling arbitration is mandatory in this or any other case when the petition alleges the existence of a written agreement to arbitrate a controversy arising between the insured and the insurer with respect to the uninsured motorist provisions of the standard automobile liability insurance policy, for reasons to be stated, we do not believe these cases compel such a conclusion. In Orpustan it was said that the entire controversy with respect to a claim made under that provision of the policy was to be determined by arbitration, including jurisdictional facts. In disapproving statements to the contrary in cases such as Farmers Ins. Exch. v. Ruiz, 250 Cal.App.2d 741 [59 Cal.Rptr. 13], and Aetna Cas. & Surety Co. v. Superior Court, 233 Cal.App.2d 333 [43 Cal.Rptr. 476], the Supreme Court in Van Tassel v. Superior Court, supra, at page 627, said that “Under the statute [Ins. Code, § 11580.2 subd. (f)] and the provisions for arbitration contained in an uninsured motorist provision such as that in the pres'ent case, we hold that jurisdictional facts, including the status of the claimant as an insured, are subject to determination by the arbitrator.” Jurisdictional facts are not defined in either case. Followed blindly this precedent would support a conclusion that to deny arbitration in any case where the existence of a written arbitration agreement is alleged in the petition to exist would be error. We do not construe these cases to dictate such a result in all cases.

In enacting title 9 of the Code of Civil Procedure governing arbitration, the Legislature clearly intended that a measure of control over the subject be retained by the courts. This conclusion finds support in section 1281.2 wherein the court is mandated to order arbitration “if it [the court] determines that an agreement to arbitrate the controversy exists, . . .” Furthermore, in section 1294, subdivision (a), an order dismissing or denying a petition to compel arbitration is expressly made appealable. (Gustafson v. State Farm Mut. Auto. Ins. Co., supra, 31 Cal.App.3d 361, 363.)

In the instant case the issue of the existence of an agreement to arbitrate was framed by the petition seeking an order to compel arbitration and submitted by the parties for decision to the court upon the allegations of the petition and under a stipulated set of facts. The propriety of the adverse order is on appeal. Petitioners have resorted to the procedures contemplated by the statutes in seeking arbitration. The existence of a binding agreement for arbitration is a condition precedent *624 to the issuance of the order and therefore properly before the court in the first instance. In discussing the general rules governing arbitration (Code Civ. Proc., § 1280 et seq.) the court in Morris v. Zuckerman, 257 Cal.App.2d 91 at pages 96-97 [64 Cal.Rptr. 714], quoted from O’Malley v. Wilshire Oil Co., 59 Cal.2d 482, 490-491 [30 Cal.Rptr. 452, 381 P.2d 188], and stated as follows: “Following Posner, [Posner v. Grunwald-Marx Inc., 56 Cal.2d 169 (14 Cal.Rptr. 297, 363 P.2d 313)] the court made these further pronouncements as to the question of arbitrability: ‘Arbitration is, of course, a matter of contract, and the parties may freely delineate the area of its application. The court’s role, according to the Supreme Court, however, must be strictly limited to a determination of whether the party resisting arbitration agreed to arbitrate. A heavy presumption weighs the scales in favor of arbitrability; an order directing arbitration should be granted “unless it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute. Doubts should be resolved in favor of coverage.” [Citation.]’ (O’Malley v. Wilshire Oil Co., 59 Cal.2d 482, 490-491 [30 Cal.Rptr. 452, 381 P.2d 188].)”

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Bluebook (online)
45 Cal. App. 3d 620, 119 Cal. Rptr. 536, 1975 Cal. App. LEXIS 1714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pagett-v-hawaiian-insurance-calctapp-1975.