David v. Abergel

Opinion

VOGEL (Miriam A.), J.

Laurence M. David, M.D., sued R. Patrick Abergel, M.D., for damages in what was essentially a breach of contract action. Abergel answered and cross-complained. Four years later, David and Abergel agreed to arbitrate their disputes and dismiss their lawsuit, and they signed a written agreement for binding arbitration in which they conferred upon the arbitrator (Hon. Lester E. Olson, retired) the power to

“grant any

[1283]

remedy or relief to which a party is entitled under California law.”

(Italics added.) Following a hearing, the arbitrator issued a 22-page decision denying all relief requested by David, awarding Abergel the sum of $9,335.02 plus interest, and reserving jurisdiction to consider fees, costs and other related matters. Abergel then submitted a motion for sanctions under Code of Civil Procedure section 128.5,

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asking for $75,000 in attorneys’ fees and claiming that David’s action was frivolous. Over David’s opposition, the arbitrator granted the motion and awarded $75,000 to Abergel.

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Abergel petitioned the trial court for confirmation of the award. Over David’s opposition, the trial court granted the petition as to the actual award in favor of Abergel—but denied it insofar as the sanction award was concerned because (according to the trial court) there was no “explicit authorization” by the parties to permit the arbitrator to award sanctions. Abergel appeals from that part of the judgment denying his request for confirmation of the sanction award. We reverse.

Discussion

We agree with Abergel that the entire award, including the arbitrator’s award of sanctions, should have been confirmed.

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Simply put, when parties have agreed in writing to binding arbitration and to confer upon their arbitrator the power to “grant any remedy or relief to which a party is entitled under California law,” we presume they meant what they said—and our Supreme Court has declared that they will be held to those words.