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Keller Construction Co. v. Kashani

Citations: 220 Cal. App. 3d 222; 269 Cal. Rptr. 259Docket: B037989

Court: California Court of Appeal; May 11, 1990; California; State Appellate Court

Narrative Opinion Summary

In this case, an appellate court reviewed the confirmation of an arbitration award favoring Keller Construction Company against a limited partnership and its sole general partner. The general partner, who contested the arbitration award, argued that he was not bound by the arbitration agreement signed by the partnership and that the proper court for confirming the award was the Ventura County Superior Court. Additionally, he claimed that the denial of his motion for reconsideration constituted an abuse of discretion. The court rejected these arguments, affirming the binding nature of the arbitration agreement on the general partner due to his role and the public policy favoring arbitration. The court also found that the general partner's limited participation in the arbitration process did not waive his jurisdictional objections. Ultimately, the judgment confirming the arbitration award was upheld, with costs awarded on appeal, and the Supreme Court denied the appellant's petition for review. The case highlights the enforceability of arbitration agreements against general partners in limited partnerships and the procedural standards for confirming arbitration awards in California.

Legal Issues Addressed

Binding Effect of Arbitration Agreements on General Partners

Application: The court determined that a sole general partner is bound by an arbitration agreement entered into by the limited partnership, even if the general partner did not personally sign the agreement.

Reasoning: The court concluded that a sole general partner is bound by an arbitration agreement made by the limited partnership, even if the partner did not personally sign the agreement.

Jurisdiction Over Arbitration Award Confirmation

Application: The court found that the jurisdictional challenge raised by the appellant regarding the proper court to confirm the arbitration award was not valid.

Reasoning: Kashani opposed Keller's petition to confirm the award, claiming he was not a party to the arbitration agreement and that jurisdiction resided in the Ventura County Superior Court.

Motion for Reconsideration in Arbitration Award Confirmation

Application: The court ruled that denying the motion for reconsideration regarding the confirmation of the arbitration award was not an abuse of discretion.

Reasoning: Kashani argues... that denying his motion for reconsideration of the confirmation order was an abuse of discretion.

Participation in Arbitration and Waiver of Jurisdictional Objections

Application: The court noted that limited participation in arbitration does not preclude later jurisdictional challenges, contrasting with cases where full participation barred such objections.

Reasoning: Kashani presented his objection to the arbitration process concerning himself personally but did not participate actively in the proceeding.

Public Policy Favoring Arbitration

Application: Public policy considerations supported the enforcement of the arbitration award against the general partner, in line with precedent favoring arbitration.

Reasoning: The ruling affirms that a sole general partner is subject to the arbitration agreement between the partnership and a third party, aligning with public policy favoring arbitration.