Precision Automotive v. Northern Ins. Co.

252 Cal. App. 2d 1036, 61 Cal. Rptr. 200, 1967 Cal. App. LEXIS 1595
CourtCalifornia Court of Appeal
DecidedJuly 31, 1967
DocketDocket Nos. 23174, 23195
StatusPublished
Cited by2 cases

This text of 252 Cal. App. 2d 1036 (Precision Automotive v. Northern Ins. Co.) 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
Precision Automotive v. Northern Ins. Co., 252 Cal. App. 2d 1036, 61 Cal. Rptr. 200, 1967 Cal. App. LEXIS 1595 (Cal. Ct. App. 1967).

Opinion

AGEE, J.

Precision Automotive, a corporation, hereafter “insured,” sustained a fire loss on March 24, 1963, which was admittedly covered by a fire insurance policy issued to it by Northern Insurance Company of New York, a corporation, hereafter ‘ ‘ insurer. ’ ’

On March 23, 1964 the insured filed action 541623 in the San Francisco Superior Court against the insurer to recover the amount of its claimed loss.

The policy contained arbitration provisions. Section 1292.4 of the Code of Civil Procedure provides: 1 “If a controversy referable to arbitration under an alleged agreement is involved in an action or proceeding pending in a superior court, a petition for an order to arbitrate shall be filed in such action or proceeding. ’ ’

On April 21, 1964, the insurer filed a written motion for an order requiring arbitration of the controversy. Such a motion constitutes a “petition” under section 1292.4 for an order requiring arbitration.

On May 28, 1964, pursuant to such petition, the court made its order directing the parties to arbitrate their controversy. The action was thus transformed to a proceeding in arbitration under title 9, “Arbitration,” sections 1280-1294.2. The validity of the order is not in dispute.

On November 23, 1964 an arbitration award was made in favor of the insured for $35,000. A signed copy of the award was served on the insurer and the insured on the same date.

Section 1292.6 provides: “After a petition has been filed under this title [§§ 1280-1294.2], the court in which such petition was filed retains jurisdiction to determine any subsequent petition involving the same agreement to arbitrate and the same controversy, and any such subsequent petition shall be filed in the same proceeding.” (Italics added.)

Contrary to the provisions of this section, the insurer filed a *1039 “Petition To Vacate Arbitration Award” on March 2, 1965, in a separate action in the same superior court, numbered 552605. (Hereafter referred to as “second action” to distinguish it from the “first action,” numbered 541623.)

On March 10, 1965, in the first action, the insured filed its verified “Petition For Confirmation Of Arbitration Award,” as provided for by section 1285 and within the period allowed by section 1288.

On March 17, 1965 the insurer filed, in said first action, its “Response To Petition To Confirm Award,” requesting therein that the award be vacated. Such relief is expressly authorized by section 1285.2. Section 1290 provides that “The allegations of a response are deemed controverted or avoided.” The issues in the first action were thus joined on March 17,1965.

On March 26, 1965 the insured filed written notice that on April 5, 1965 it would appear before the law and motion department of said superior court and move for an order confirming the arbitration award; the notice stated that the motion would be based upon all of the records in the action, including the verified petition for confirmation, the declaration of its president in support of the motion, the points and authorities filed in support of the motion, and such evidence as might be produced at the hearing. All of these papers were properly served upon the attorneys for the insurer. (See § 1290.2.)

The declaration of the insured’s president is quite comprehensive and not only supports the validity of the award but negates the charging allegations of the insurer’s “Response.” While we do not approve of the practice, no objection or motion to strike was made to the inclusion therein of the following ‘ ‘ catch-all ’ ’ declaration: ‘‘ The facts stated in the Points And Authorities in support of plaintiff’s motion for confirmation of award herein are true and correct, and the quotations from the correspondence therein contained are accurate. ’ ’

The evidence before the trial court at the hearing consisted of the verified petition of the insured to confirm the award, the declaration of its president in support thereof, and the verified response of the insurer. No additional evidence was offered by either party.

The issues were heard as prescribed by section 1290.2, i.e., “in a summary way in the manner and upon the notice pro *1040 vided by law for the making and hearing of motions. . . .” (See Beckett v. Kaynar Mfg. Co., Inc., 49 Cal.2d 695, 699 [321 P.2d 749]; Loscalzo v. Federal Mut. Ins. Co., 228 Cal.App.2d 391, 397 [39 Cal.Rptr. 437].)

At the conclusion of the hearing on April 5, 1965 the court ordered that the award be confirmed. On May 18, 1965 the insurer’s motion to vacate this order was denied and the findings and conclusions and the judgment were signed and filed. On June 2, 1965 the insurer filed notice of appeal from this judgment.

Prior to the above hearing, and on March 15, 1965, the insurer filed written notices that it would move the law and motion department for an order consolidating the two actions and for an order allowing inspection of certain business records. The motions were never calendared or heard until after the hearing of April 5, 1965. The insurer offers no explanation for this and the record is likewise silent.

On April 19, 1965 the insurer’s counsel filed a declaration in which he states that the court had “failed to consider” these motions and “respectfully requested that counsel be heard thereon, and that the court make its order granting said motion to consolidate and said motion for inspection of records.” The respective motions were thereafter heard and denied on May 18,1965.

The insurer appeared at the hearing on April 5, 1965 and participated therein without objection of any kind. The matter was submitted for decision on the record then before the court.

The insurer offered no evidence at the hearing. Apparently it was willing to forego whatever evidence may have been developed by its motion to inspect.

The motion to consolidate will be further discussed in considering the appeal from the judgment in the second action.

In any event we find that the court did not err in proceeding with the hearing on April 5, 1965 and that the award was properly confirmed on that date.

Appeal in Second Action

On April 5,1965 the court ordered that the demurrer of the insured to the insurer’s “First Amended Petition To Vacate Arbitration Award” be sustained without leave to amend.

On May 18, 1965, this order was set aside and reconsidered. The demurrer was again sustained without leave to amend. In *1041 an order signed by the court on May 21, 1965, the grounds of the ruling were stated as follows: “1. The petition does not state facts sufficient to constitute a cause of action, or grounds for relief, and such cannot be therein stated; 2.

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Bluebook (online)
252 Cal. App. 2d 1036, 61 Cal. Rptr. 200, 1967 Cal. App. LEXIS 1595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/precision-automotive-v-northern-ins-co-calctapp-1967.