MORGAN v. JAMS/ENDISPUTE
Filed 6/20/06
CERTIFIED FOR PARTIAL PUBLICATION*
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION FOUR
| MORGAN PHILLIPS, INC., Plaintiff and Appellant, v. JAMS/ENDISPUTE, et al., Defendants and Respondents. | B183934 (Los Angeles County Super. Ct. Nos. BC308482 and BC318135) |
APPEAL from a judgment of the Superior Court of Los Angeles County, Mel Red Recana, Judge. Reversed.
Shapiro, Rodarte & Freedman, Cindy F. Forman, Thomas W. Foote and Daniel D. Rodarte for Plaintiff and Appellant.
Long & Levit, Joseph P. McMonigle, Beth A. Trittipo and Jessica Rudin MacGregor for Defendants and Respondents.
If an arbitrator withdraws from an arbitration proceeding for no stated ethical reason following evidence and argument, and offers to continue mediation efforts but refuses to render an arbitration award, does the doctrine of arbitral immunity protect the arbitrator from suit? We hold that because such conduct defeats rather than serves the adjudicatory purpose of arbitration, arbitral immunity does not apply.
BACKGROUND
Plaintiff Morgan Phillips, Inc. appeals from the judgment dismissing its claims against defendants John B. Bates, JAMS/Endispute, L.L.C., and JAMS, Inc.[1] The trial court entered the judgment after sustaining defendants' demurrer to Morgan Phillips' first amended complaint without leave to amend, on the ground that Morgan Phillips' claims are barred by the doctrine of arbitral immunity. We reverse.
Morgan Philips' operative pleading is its first amended complaint. We set forth the facts in accordance with the standard governing demurrers: we assume the truth of all well-pleaded facts and accept as true all facts that may be implied or inferred from the facts alleged. (Thaler v. Household Finance Corp. (2000) 80 Cal.App.4th 1093, 1098.)
Morgan Phillips, a retailer of specialty bedding products, contracted with two suppliers for mattresses and box springs made according to Morgan Phillips' specifications. In October 1999, after discovering that the suppliers were not manufacturing the products as specified, Morgan Phillips sued the suppliers. The parties retained JAMS and Bates to mediate the dispute. In September 2000, Bates assisted the parties in reaching a settlement. The â€
