Templeton Development v. Sup. Ct.
An electrical contractor, sued petitioner, a general building contractor based in Nevada, for breach of contract, common counts, violation of Civil Code section 3260, and violation of Business and Professions Code section 7108.5. Also included in the complaint were causes of action against petitioners Carefree Natomas Limited Partnership, Carefree Natomas, LP, and CALGP Corporation on a stop notice and to foreclose on a mechanics lien. Respondent’s claims involve materials, labor and equipment supplied for construction of an apartment complex known as Carefree Natomas in Sacramento.
Petitioners unsuccessfully moved to dismiss respondent’s complaint on the ground of inconvenient forum. They argued the subcontract agreement between Emard and Templeton required Emard to submit the dispute to mediation or arbitration in Las Vegas, Nevada, before filing suit. The court ruled that Code of Civil Procedure section 410.42 (section 410.42) rendered the out-of-state mediation provision unenforceable.
Petitioners filed a petition for writ of mandate asking this court to set aside the trial court order denying their motion to dismiss. Alternatively, they seek an order remanding the matter for determination whether the Federal Arbitration Act, 9 U.S.C. section 1 et seq. (FAA), preempts section 410.42. Because court conclude the trial court was correct in ruling section 410.42 controls, and defendant was entitled to file suit under the terms of the subcontract agreement with Templeton, court need not reach the federal preemption issue.
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