California Court of Appeals Denies Confirmation of Award Due to NonPayment of Arbitrator’s Fees

In Cinel v Christopher, 203 Cal. App. 4th 759, 136 Cal. Rptr. 3d 763 (Cal. App. 2d Dist. 2012), the Second District California Court of Appeal reviewed an order denying a petition to confirm an arbitration award.

Defendant appealed an order of the Superior Court of Los Angeles County, California, denying his petition to confirm an arbitration award. The matter had gone to arbitration pursuant to an underlying contract between plaintiff, defendant, and five other defendants, but several of the defendants refused to pay the arbitrator’s fee, and the arbitrator terminated the arbitration. The trial court refused to confirm the arbitrator’s decision, finding it was not an “award.”

The Court of Appeal found that the arbitrator’s order, which did not address any of the issues in controversy but instead refused to commence the proceedings for failure to pay fees, did not constitute an “award” within the meaning of Code Civ. Proc., § 1283.4, such that it was subject to confirmation pursuant to Code Civ. Proc., § 1285. Therefore, dismissing defendant’s petition did not amount to an unauthorized vacation of the award. Rather, the trial court “denied” the petition to confirm because there was no substantive award to confirm, correct, or vacate. Accordingly, the Court of Appeal affirmed the trial court’s order.