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ALLSTATE INSURANCE COMPANY v. SUPERIOR COURT

ALLSTATE INSURANCE COMPANY v. SUPERIOR COURT
08:30:2006

ALLSTATE INSURANCE COMPANY v. SUPERIOR COURT





Filed 8/29/06




CERTIFIED FOR PUBLICATION




IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA




SECOND APPELLATE DISTRICT





DIVISION ONE











ALLSTATE INSURANCE COMPANY,


Petitioner,


v.


THE SUPERIOR COURT OF


LOS ANGELES COUNTY,


Respondent;


RAYMOND M. JESSEL et al.,


Real Parties in Interest.



No. B188620


(Super. Ct. No. BS097297)



ORIGINAL PROCEEDING; petition for a writ of mandate, Maureen Duffy-Lewis, Judge. Petition granted.


Luce, Forward, Hamilton & Scripps, Charles A. Bird, Peter H. Klee and Nathan S. Arrington for Petitioner.


No appearance for Respondent.


Engstrom, Lipscomb & Lack, Jerry A. Ramsey and Brian J. Heffernan for Real Parties in Interest.


_________________________________


This is an appeal from a nonappealable order granting a petition to vacate an arbitration award and ordering further proceedings before the same arbitrator. We treat the appeal as a petition for a writ of mandate, direct the court to correct the arbitration award to conform to the parties' agreement, and issue a writ commanding the trial court to vacate its order.


FACTS


A.


The 1994 Northridge earthquake damaged a hillside house owned by Raymond Jessel and Cynthia Thompson (collectively Jessel). Jessel submitted two claims under his homeowner's policy to Allstate Insurance Company, neither of which was resolved to his satisfaction. In 1998, Jessel sued Allstate for breach of contract, bad faith, and fraud. Allstate removed the case to the United States District Court.


In 2000, Jessel and Allstate (with both sides represented by counsel) signed a 13-page â€





Description Trial court erred in granting party's petition for reconsideration of arbitrator's award where arbitrator stated that award was final. Parties in arbitration agreement explicitly waived any right to appeal or challenge final arbitration award except where it was result of arbitrator's corruption, misconduct, or conflict, which did not occur. Arbitrator's error in stating reasons for his decision, contrary to arbitration agreement, could easily be corrected by deleting surplusage from award so as to limit it to amount due to party.
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