Singh v. Reedy Mechanical CA3

CourtCalifornia Court of Appeal
DecidedNovember 26, 2025
DocketC100084
StatusUnpublished

This text of Singh v. Reedy Mechanical CA3 (Singh v. Reedy Mechanical CA3) 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
Singh v. Reedy Mechanical CA3, (Cal. Ct. App. 2025).

Opinion

Filed 11/26/25 Singh v. Reedy Mechanical CA3

NOT TO BE PUBLISHED

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT

(San Joaquin) ----

JASPREET SINGH, C100084

(Super. Ct. No. STK-CV- UCC-2021-0011339) Plaintiff and Respondent,

v.

REEDY MECHANICAL INC.,

Defendant and Appellant.

In December 2018, plaintiff Jaspreet Singh made an offer to purchase real property from Jefferey and Dorinda Reedy (collectively, the Reedys). The Reedys made a counteroffer, which was accepted, and the transaction proceeded to escrow. The Reedys, however, refused to close, belatedly asserting there was an existing 2015 commercial lease on the property between themselves, as landlord, and defendant Reedy Mechanical Inc., as tenant, that ran with the land. They argued plaintiff would have to assume that

1 lease upon acquiring the property. Plaintiff maintained that the Reedys never disclosed the existence of the purported lease. In 2019, plaintiff sought specific performance of the purchase agreement. The matter was referred to an arbitrator, who found in favor of plaintiff on the specific performance cause of action. The trial court confirmed the award. The Reedys still refused to consummate the sale, so plaintiff filed this action against defendant Reedy Mechanical, Inc., which led to another arbitrator’s award declaring the 2015 commercial lease void and invalid. The trial court denied defendant’s petition to vacate the arbitrator’s decision and confirmed the second award. On appeal, defendant argues that we are required to review the matter de novo, and that the trial court erred in denying its petition to vacate the arbitrator’s award because (1) the arbitrator was biased; (2) the arbitrator exceeded her powers in declaring the lease void and invalid because (a) plaintiff was not a party to the lease and lacked standing to bring this action, and (b) the Reedys were indispensable parties but were not joined in the action; and (3) there was no agreement to arbitrate and thus the action was not properly before the arbitrator. Finding no merit in these contentions, we will affirm. BACKGROUND Complaint Plaintiff commenced this action by filing a complaint seeking declaratory relief and ejectment. Plaintiff alleged that, in a prior action against the Reedys, he had sought specific performance of a written contract to purchase real property on Frewert Road in Lathrop, California. Plaintiff demanded arbitration, and the arbitrator’s award ordered the Reedys to close escrow and sell the property to plaintiff. The trial court confirmed the arbitrator’s interim and final awards. According to plaintiff, during the earlier arbitration proceedings, he learned for the first time of an alleged 2015 commercial lease on the subject property. The Reedys were identified as the landlords, and defendant was the tenant. Plaintiff alleged that the interim

2 arbitration award in the prior action confirmed that the Reedys acknowledged their failure to disclose the existence of the 2015 lease. But the arbitrator made no express findings regarding the validity of that lease. Plaintiff notified the Reedys that he intended to close escrow and pursue this action. In the first cause of action, plaintiff sought a judicial determination as to the validity of the 2015 commercial lease and a declaration that the lease was void and invalid. In the second cause of action, plaintiff sought a judgment ejecting defendant from the property. Arbitration First Action and Prior Arbitration Awards In the prior action, plaintiff filed a complaint seeking specific performance, declaratory relief, and damages. The matter was referred to the same arbitrator who presided over the present matter. The arbitrator found in favor of plaintiff on his claim for specific performance. In the interim award, the arbitrator noted that the Reedys acknowledged that their Transfer Disclosure Statement did not disclose the existence of the 2015 commercial lease. The arbitrator rejected the Reedys’ argument that the real estate sale agreement was unenforceable based on this omission, observing that it was the Reedys who failed to make the disclosure, and they could not use that failure to defeat a specific performance claim. In the final arbitration award, the arbitrator denied plaintiff’s request that she make an express finding that the 2015 lease was invalid because defendant was not a party to the arbitration, and the issue was beyond the scope of plaintiff’s complaint. After both arbitration awards were issued in the prior action, the Reedys recorded a memorandum of lease on December 31, 2020, creating a cloud on title. The trial court in the prior action confirmed the arbitrator’s interim and final awards and entered judgment in plaintiff’s favor. When plaintiff attempted to consummate the sale and close escrow, however, the Reedys refused to sign the necessary

3 documents, and plaintiff filed a motion seeking appointment of an elisor. The trial court granted the motion, the Reedys appealed, and, while the appeal was pending, the trial court granted the Reedy’s motion for a stay. The Arbitration Hearing In the present arbitration, the arbitrator limited the issue for consideration to the declaratory relief cause of action. At the arbitration hearing, plaintiff attempted to call both of the Reedys as witnesses, but counsel for defendant stated they would not appear. The arbitrator noted that it was previously understood that, although the Reedys were out of state, they would appear remotely. Defendant’s counsel stated that the Reedys had no intention of appearing or participating in the proceedings. Defendant’s attorney acknowledged that defendant was solely owned by Jefferey Reedy. Shella Dewhurst, a licensed real estate agent, testified that she represented both plaintiff and the Reedys in the sale and purchase of the subject property. In entertaining an earlier offer on the property, the Reedys did not inform the potential buyers that there was an existing lease on the property, and did not object to a proposed term that would have required them to vacate the property in 15 days if they did not reach a separate agreement. They also did not disclose any tenant in possession of the subject property when they tendered a counteroffer. No lease agreement was disclosed in the documents prepared by the Reedys. Ultimately, the potential buyers did not proceed with the transaction. According to Dewhurst, before that unsuccessful offer on the property, a 2018 title report revealed an option agreement that was clouding title to the property. The option, dated June 2, 2005, was between the Reedys and Lathrop Land, LLC. This cloud on title was removed during escrow in the sale of the property to plaintiff. Dewhurst further testified that plaintiff tendered a purchase offer for the property dated December 20, 2018. The Reedys made a counteroffer. These two documents together formed the purchase agreement. According to Dewhurst, if there had been a

4 tenant on the property at that time, the Reedys were required to disclose this fact in their counteroffer, and they did not do so. Instead, the Reedys agreed to vacate the property within two weeks after closing. The Reedys never mentioned defendant having a lease on the property. A seller property questionnaire, signed December 23, 2018, was part of the Reedys’ disclosure package.

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Singh v. Reedy Mechanical CA3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/singh-v-reedy-mechanical-ca3-calctapp-2025.