Preview
ELECTRONICALLY FILED
Superior Court of California,
County of Placer
06/05/2020
YOUNG, MINNEY & CORR, LLP By: Laurel Sanders, Deputy Clerk
PAUL C. MINNEY, SBN 166989
WILLIAM J. TRINKLE, SBN 102280
S. EDWARD SLABACH, SBN 206020
655 University Ave. Suite 150
Sacramento, CA 95825
Telephone: (916) 646-1400
Facsimile: (916) 646-1300
E-mail: wjtrinkle@mychaterlaw.com
tslabach@mychaterlaw.com
Attorneys
for Plaintiff,
F & T INVESTMENTS, INC., dba DUARTE
CONSTRUCTION
10 IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA
11 COUNTY OF PLACER
12
13 F & T INVESTMENTS, INC., dba DUARTE CASE NO.: SCV0044610
CONSTRUCTION,
14 MEMORANDUM OF POINTS AND
Plaintiff, AUTHORITIES IN SUPPORT OF
15 F&T INVESTMENTS, INC., dba
Vv. DUARTE CONSTRUCTION’S
16 MOTION TO STAY PROCEEDINGS
PATRICIA D. WHITECHAT; and DOES 1 PENDING ARBITRATION
17 through 10,
C.C.P. § 1281.5
18 Defendants.
Date: August 20, 2020
19 Time: 8:30 a.m.
Dept.: 42
20
[Complaint Filed: March 11, 2020]
21
22 INTRODUCTION
23 This lawsuit brings mechanic’s lien and other claims against the owner of a residential property
24 in Auburn (the “Property”). This motion seeks an order to stay those proceedings so that the matter
25 may proceed to binding arbitration pursuant to the parties’ agreement.
26 Mit
27 Mit
28 Mit
YOUNG INNEY
&CC LLP
wr MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF F&T INVESTMENTS, INC., DBA DUARTE CONSTRUCTION’S
A 958 MOTION TO STAY PROCEEDINGS PENDING ARBITRATION
SUMMARY OF FACTS
The plaintiff in this matter, F&T Investments, Inc, dba Duarte Construction (“Duarte”), is a
construction company. The defendant is the Property’s owner, Patricia D. Whitechat ( “Whitechat’).
In early 2019, Duarte and Whitechat entered into a contract (the “Contract”) for the
reconstruction of the Whitechat residence that had been damaged by fire. (See Declaration of Jeff
Thomas (“JT Decl.”), Exhibit 1.)
After performing work on the project, a dispute arose between the parties regarding payment.
In short, Duarte demanded Whitechat pay a balance of $47,160.41 claimed to be owing under the
Contract, and Whitechat refused. This dispute for payment of $47,160.41 is the entire basis of
10 Duarte’s lawsuit. (See Declaration of S. Edward Slabach (“SES Decl.”), §2.)
11 The lawsuit is not the only mechanism for resolving this dispute, however. The Contract
12 contains an arbitration clause. Section 13 of the Contract says, in relevant part: “[a]ny controversy or
13 claim arising out of or relating to this contract or its alleged breach which cannot be resolved by
14 mutual agreement shall be settled by arbitration in accordance with the Construction Industry Rules of
15 the American Arbitration Association in effect on the date of the contract and judgment upon the
16 award rendered by the arbitrator(s) may be entered in any court having jurisdiction.” (JT Decl., Exhibit
17 1)
18 Duarte has initiated arbitration of its dispute with Whitechat through the American Arbitration
19 Association (“AAA”) pursuant to their Contract. AAA’s case number for this matter is 01-20-0005-
20 4873. (SES Decl., 43.)
21 ARGUMENT
22 The Court should stay the instant action and allow the dispute to proceed to arbitration because
23 California has strong public policy in favor of arbitration. (Taylor v. Crane (1979) 24 Cal.3d 442,
24 452.) The policy in favor of arbitration is so strong, that Code of Civil Procedure § 1281.5 encourages
25 arbitration by permitting mechanic’s lien plaintiffs to proceed with contractual arbitration without
26 waiving their mechanic’s lien remedies. (C.C.P. § 1281.5.) Code of Civil Procedure 1281.5
27 specifically empowers courts to stay a mechanic’s lien action that arises from facts related to the
28 matter to be arbitrated. (/d.) When a plaintiff, within thirty days of serving a mechanic’s lien action
YOUNG, MINNEY
‘& CORR, LLP
(ss Univenstry AVENUE MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF F&T INVESTMENTS, INC., DBA DUARTE CONSTRUCTION’S
sure 150,
SACRAMENTO, CA 95825 MOTION TO STAY PROCEEDINGS PENDING ARBITRATION
on a defendant, files a motion to stay the action so that contractual arbitration may be pursued, the
Court is specifically empowered to stay the action while arbitration proceeds. ! (Code of Civil
Procedure § 1281.5(b).)
CONCLUSION
Here, given that the mechanic’s lien action is based on the same facts that will be adjudicated by
AAA; given the Contract’s arbitration clause; given the public policy in favor of the arbitration of
disputes; and given the clear purpose of Code of Civil Procedure § 1281.5 to preserve a plaintiffs
mechanic’s lien remedy while arbitration proceeds, this Court should order this mechanic’s lien action
stayed pending the outcome of the arbitration with AAA.
10
11 Dated: June 5, 2020 YOUNG, MINNEY & CORR, LLP
12
By:
13 S-EDWARD SLABACH
Attorneys
for Plaintiff,
14 F & T INVESTMENTS, INC., dba DUARTE
CONSTRUCTION
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28 ' The Court’s file should reflect that this action was personally served on the defendant on May 7, 2020.
YOUNG, MINNEY
‘& CORR, LLP
(ss Univenstry AVENUE MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF F&T INVESTMENTS, INC., DBA DUARTE CONSTRUCTION’S
sure 150,
SACRAMENTO, CA 95825 MOTION TO STAY PROCEEDINGS PENDING ARBITRATION
Preview
ELECTRONICALLY FILED Superior Court of California, County of Placer 06/05/2020 YOUNG, MINNEY & CORR, LLP By: Laurel Sanders, Deputy Clerk PAUL C. MINNEY, SBN 166989 WILLIAM J. TRINKLE, SBN 102280 S. EDWARD SLABACH, SBN 206020 655 University Ave. Suite 150 Sacramento, CA 95825 Telephone: (916) 646-1400 Facsimile: (916) 646-1300 E-mail: wjtrinkle@mychaterlaw.com tslabach@mychaterlaw.com Attorneys for Plaintiff, F & T INVESTMENTS, INC., dba DUARTE CONSTRUCTION 10 IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA 11 COUNTY OF PLACER 12 13 F & T INVESTMENTS, INC., dba DUARTE CASE NO.: SCV0044610 CONSTRUCTION, 14 MEMORANDUM OF POINTS AND Plaintiff, AUTHORITIES IN SUPPORT OF 15 F&T INVESTMENTS, INC., dba Vv. DUARTE CONSTRUCTION’S 16 MOTION TO STAY PROCEEDINGS PATRICIA D. WHITECHAT; and DOES 1 PENDING ARBITRATION 17 through 10, C.C.P. § 1281.5 18 Defendants. Date: August 20, 2020 19 Time: 8:30 a.m. Dept.: 42 20 [Complaint Filed: March 11, 2020] 21 22 INTRODUCTION 23 This lawsuit brings mechanic’s lien and other claims against the owner of a residential property 24 in Auburn (the “Property”). This motion seeks an order to stay those proceedings so that the matter 25 may proceed to binding arbitration pursuant to the parties’ agreement. 26 Mit 27 Mit 28 Mit YOUNG INNEY &CC LLP wr MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF F&T INVESTMENTS, INC., DBA DUARTE CONSTRUCTION’S A 958 MOTION TO STAY PROCEEDINGS PENDING ARBITRATION SUMMARY OF FACTS The plaintiff in this matter, F&T Investments, Inc, dba Duarte Construction (“Duarte”), is a construction company. The defendant is the Property’s owner, Patricia D. Whitechat ( “Whitechat’). In early 2019, Duarte and Whitechat entered into a contract (the “Contract”) for the reconstruction of the Whitechat residence that had been damaged by fire. (See Declaration of Jeff Thomas (“JT Decl.”), Exhibit 1.) After performing work on the project, a dispute arose between the parties regarding payment. In short, Duarte demanded Whitechat pay a balance of $47,160.41 claimed to be owing under the Contract, and Whitechat refused. This dispute for payment of $47,160.41 is the entire basis of 10 Duarte’s lawsuit. (See Declaration of S. Edward Slabach (“SES Decl.”), §2.) 11 The lawsuit is not the only mechanism for resolving this dispute, however. The Contract 12 contains an arbitration clause. Section 13 of the Contract says, in relevant part: “[a]ny controversy or 13 claim arising out of or relating to this contract or its alleged breach which cannot be resolved by 14 mutual agreement shall be settled by arbitration in accordance with the Construction Industry Rules of 15 the American Arbitration Association in effect on the date of the contract and judgment upon the 16 award rendered by the arbitrator(s) may be entered in any court having jurisdiction.” (JT Decl., Exhibit 17 1) 18 Duarte has initiated arbitration of its dispute with Whitechat through the American Arbitration 19 Association (“AAA”) pursuant to their Contract. AAA’s case number for this matter is 01-20-0005- 20 4873. (SES Decl., 43.) 21 ARGUMENT 22 The Court should stay the instant action and allow the dispute to proceed to arbitration because 23 California has strong public policy in favor of arbitration. (Taylor v. Crane (1979) 24 Cal.3d 442, 24 452.) The policy in favor of arbitration is so strong, that Code of Civil Procedure § 1281.5 encourages 25 arbitration by permitting mechanic’s lien plaintiffs to proceed with contractual arbitration without 26 waiving their mechanic’s lien remedies. (C.C.P. § 1281.5.) Code of Civil Procedure 1281.5 27 specifically empowers courts to stay a mechanic’s lien action that arises from facts related to the 28 matter to be arbitrated. (/d.) When a plaintiff, within thirty days of serving a mechanic’s lien action YOUNG, MINNEY ‘& CORR, LLP (ss Univenstry AVENUE MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF F&T INVESTMENTS, INC., DBA DUARTE CONSTRUCTION’S sure 150, SACRAMENTO, CA 95825 MOTION TO STAY PROCEEDINGS PENDING ARBITRATION on a defendant, files a motion to stay the action so that contractual arbitration may be pursued, the Court is specifically empowered to stay the action while arbitration proceeds. ! (Code of Civil Procedure § 1281.5(b).) CONCLUSION Here, given that the mechanic’s lien action is based on the same facts that will be adjudicated by AAA; given the Contract’s arbitration clause; given the public policy in favor of the arbitration of disputes; and given the clear purpose of Code of Civil Procedure § 1281.5 to preserve a plaintiffs mechanic’s lien remedy while arbitration proceeds, this Court should order this mechanic’s lien action stayed pending the outcome of the arbitration with AAA. 10 11 Dated: June 5, 2020 YOUNG, MINNEY & CORR, LLP 12 By: 13 S-EDWARD SLABACH Attorneys for Plaintiff, 14 F & T INVESTMENTS, INC., dba DUARTE CONSTRUCTION 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ' The Court’s file should reflect that this action was personally served on the defendant on May 7, 2020. YOUNG, MINNEY ‘& CORR, LLP (ss Univenstry AVENUE MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF F&T INVESTMENTS, INC., DBA DUARTE CONSTRUCTION’S sure 150, SACRAMENTO, CA 95825 MOTION TO STAY PROCEEDINGS PENDING ARBITRATION