Rodrigues v. Keller

113 Cal. App. 3d 838, 170 Cal. Rptr. 349
California Court of Appeal·Decided December 23, 1980·No. 46304·Published·Cited by 30 cases

Opinion

113 Cal.App.3d 838 (1980)
170 Cal. Rptr. 349

SHERWOOD RODRIGUES, Plaintiff and Appellant,
v.
JAMES KELLER et al., Defendants and Respondents.

Docket No. 46304.

Court of Appeals of California, First District, Division One.

December 23, 1980.

*839 COUNSEL

Frederick L. Grundy for Plaintiff and Appellant.

James G. Lea and Miller & Lea for Defendants and Respondents.

*840 OPINION

GRODIN, J.

The parties herein were partners in a firm which provided public accounting and computer services. Their partnership agreement contained provision for settlement of "[a]ny and all disputes, arising in or under this agreement," by arbitration pursuant to the rules of the American Arbitration Association. In 1976 the partnership dissolved, certain disputes arising out of the dissolution were submitted to arbitration, and after extensive hearings the arbitrator rendered an award. Appellant then sought by petition in the trial court to have the award vacated on various grounds. This appeal is from the order of the trial court dismissing that petition. (Code Civ. Proc., § 1294, subd. (b).)

(1a) Appellant's principal contention on appeal is that the trial court should have vacated the award because (he claims) the award failed to resolve all issues submitted for decision. This was the common law rule (cf. Muldrow v. Norris (1859) 12 Cal. 331), embodied, at least in part, in California's first comprehensive arbitration statute, adopted in 1927. That statute made provision for vacating an award "[w]here the arbitrators exceeded their powers, or so imperfectly executed them, that a mutual, final and definite award, upon the subject matter submitted, was not made." (Former Code Civ. Proc., § 1288, subd. (d), Stats. 1927, ch. 225, § 9, p. 406. See Film Technicians v. Color Corp. America (1956) 141 Cal. App.2d 553, 555-556 [297 P.2d 86]; cf. Sapp v. Barenfeld (1949) 34 Cal.2d 515, 522-523 [212 P.2d 233].)

The current arbitration statute, adopted in 1961, omitted that language from section 1286.2, which lists the grounds upon which an award may be vacated.[1] A new section, however (Code Civ. Proc., § 1283.4), provides that "[t]he award shall be in writing and signed by the arbitrators concurring therein. It shall include a determination of all the questions submitted to the arbitrators the decision of which is necessary *841 in order to determine the controversy." It has been held that where the record shows that an issue has been submitted to an arbitrator and that he totally failed to consider it, such failure may constitute "other conduct of the arbitrators contrary to the provisions of this title" justifying vacation of the award under section 1286.2, subdivision (e). (Banks v. Milwaukee Ins. Co. (1966) 247 Cal. App.2d 34, 38-40 [55 Cal. Rptr. 139, 36 A.L.R.3d 933]. And see M.B. Zaninovich, Inc. v. Teamster Farmworker Local Union 946 (1978) 86 Cal. App.3d 410, 414-416 [150 Cal. Rptr. 233]; cf. National Union Fire Ins. Co. v. Superior Court (1967) 252 Cal. App.2d 568, 571 [60 Cal. Rptr. 535]; Lovret v. Seyfarth (1972) 22 Cal. App.3d 841 [101 Cal. Rptr. 143]; Jones v. Kvistad (1971) 19 Cal. App.3d 836, 841 [97 Cal. Rptr. 100]; Safeway Stores, Inc. v. Brotherhood of Teamsters (1978) 83 Cal. App.3d 430, 440, fn. 4 [147 Cal. Rptr. 835].)

Characterizing of an arbitrator's omission to determine all questions submitted for decision as grounds for vacating an award may produce severe consequences. Under the former statute, where an award was vacated on similar grounds, the court remanded the dispute to the same arbitrators for redetermination. (Former Code Civ. Proc., § 1288, Stats. 1927, ch. 225, § 9. See Film Technicians v. Color Corp. America, supra, 141 Cal. App.2d 553.) Under the current statute, where an award is vacated on grounds set forth in subdivision (d) or (e) of section 1286.2 the court may order a rehearing before the original arbitrators only with the consent of the parties. (Code Civ. Proc., § 1287.) The result, in a case such as this, would be to allow the party who successfully attacked the award on grounds of incompleteness to have a second bite at the whole apple. (See M.B. Zaninovich, Inc. v. Teamster Farmworker Local Union 946, supra, 86 Cal. App.3d 410, 416, fn. 6, in which the court "strongly urged" that the Legislature consider amending this provision.)

These practical considerations, together with the deliberate modification in 1961 of the statutory grounds for vacating an award, lead us to question whether the Legislature intended that an award be vacated in all cases in which it is found that the arbitrator failed to determine all the questions submitted. We note, for example, that failure of all arbitrators concurring in the award to sign it, as also required by section 1283.4, is not considered to be fatal to the award in the absence of prejudice (United Brotherhood of Carpenters etc., Local 642 v. DeMello (1972) 22 Cal. App.3d 838, 840 [100 Cal. Rptr. 564]) and the *842 same is true of other conduct on the part of arbitrators which departs from statutory requirements (Canadian Indem. Co. v. Ohm (1969) 271 Cal. App.2d 703, 708 [76 Cal. Rptr. 902]). We note also that in some jurisdictions an award which fails to determine all questions submitted is treated as an incomplete award, with the result that the court remands the dispute to the same arbitrator so that he can complete his assignment. (La Vale Plaza, Inc. v. R.S. Noonan, Inc. (3d Cir.1967) 378 F.2d 569, 572; and see Annots. (1971) 36 A.L.R.3d 649, 939 and 37 A.L.R.3d 200.)[2] Arguably a similar principle would be compatible with the California statute in cases where the omitted issue is severable in such a way that partial remand would not prejudice the legitimate interests of any party.

It is unnecessary for us to decide that question in this case, however, for here, unlike the situation in cases where the award has been vacated, the record does not demonstrate that any issue was submitted to the arbitrator which he totally failed to consider.

Four principles guide our determination. (2) First, it is presumed that all issues submitted for decision have been passed on and resolved, and the burden of proving otherwise is upon the party challenging the award. (Lauria v. Soriano (1960) 180 Cal. App.2d 163, 168 [4 Cal. Rptr. 328]; Ulene v. Murray Millman of California (1959) 175 Cal. App.2d 655, 662 [346 P.2d 494].)

Second, to discharge that burden, the party attacking the award must demonstrate that a particular claim was expressly raised at some time before the award (Sapp v. Barenfeld, supra, 34 Cal.2d 515, 523), and that the arbitrator failed to consider it (National Union Fire Ins. Co. v. Superior Court, supra, 252 Cal. App.2d 568, 572).

*843

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