Procedural Posture: job description templates
Plaintiff homeowners sought review of the decision of the Superior Court of Riverside County (California), which granted defendant remodeling contractor's petition for arbitration under the contract and ordered that plaintiffs pay the arbitration filing fee.
Overview
In plaintiff homeowners' damage action against defendant remodeling contractor, the lower court granted defendant's petition for arbitration under the contract and ordered plaintiffs to pay the arbitration filing fee. On appeal, the court reversed and held that the lower court erroneously ordered plaintiffs to pay the fee even though they had waived arbitration by filing the action in superior court. Arbitration could be waived because the arbitration clause did not deprive the lower court of jurisdiction. The court held that if defendants really wanted arbitration, they could pay for it. Because the contract was a contract of adhesion, the court interpreted the arbitration clause against defendant, the party who drafted the contract. In so doing, the court emphasized the drastic difference between the arbitration and superior court filing fees. The court also held that the order compelling arbitration was immediately appealable under the collateral order exception to the final judgment rule. Specifically, the order was a final determination of a collateral matter distinct and severable from the merits of the action, which required plaintiffs immediately to pay money.
Outcome
The court reversed the order granting defendant remodeling contractor's petition for arbitration under the contract and that ordered plaintiff homeowners to pay the arbitration filing fee because plaintiffs waived arbitration by filing the action in superior court. The court held that the order compelling arbitration was immediately appealable under the collateral order exception to the final judgment rule.