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Lopez v. 21st Century Insurance Co.3/10/2003
NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS
California Rules of Court, rule 977(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 977(b). This opinion has not been certified for publication or ordered published for purposes of rule 977.
I. INTRODUCTION
Defendant, 21st Century Insurance Company, appeals from an order vacating an arbitration award in favor of plaintiffs, Julissa and Lourdes Lopez, on the ground of corruption. (Code Civ. Proc., § 1286.2, subds. (a) & (b).) The trial court found: the arbitrator had a statutory duty to disclose that he had acted as an arbitrator in prior cases involving defendant; the arbitrator failed to do so; the arbitrator had not kept necessary records with respect to the prior arbitrations; plaintiffs would not have proceeded with this arbitrator had they known the facts; and there was an impression of possible bias. We find no abuse of discretion. We affirm the order.
II. BACKGROUND
Julissa, who was represented by Jack Daniels, made an uninsured motorist claim under her policy with defendant. The claim was subject to contractual arbitration. Defense counsel provided Mr. Daniels with the names of four possible arbitrators. Mr. Daniels, on behalf of plaintiffs, chose Saul Grayson from that list to be the arbitrator. Mr. Grayson was a "neutral" arbitrator in that he was jointly selected by the parties. (§ 1280, subd. (d).)
The arbitrator conducted hearings on April 6 and May 14, 2001. Following the arbitration, on July 10, 2001, Mr. Grayson awarded Julissa and Lourdes $36,645 and $23,783 respectively. On August 9, 2001, Mr. Daniels wrote to Mr. Grayson, the arbitrator, claiming, "Upon review of the award in this case, it is apparent that the judgment was a result of corruption stemming from prejudice on your part." The August 9, 2001, letter demanded that Mr. Grayson disclose his associations, as arbitrator or otherwise, with defendant within the past 10 years. On August 16, 2001, Mr. Grayson responded by letter that his only association with defendant or its counsel had been as an arbitrator; further, he related: "I have never kept any record of who the attorneys are, or the insurance companies, in the various arbitrations or mediations I have conducted over the years. In reviewing my calendar for 2001, I know that I have conducted two (2) arbitration hearings in which 20th (or 21st) Century Insurance Co. was involved, including your case. In addition there is a multi-party arbitration pending in which 21st Century Insurance Co. is the insurance carrier for one (1) of the defendants, and I am scheduled to be the arbitrator through Judicate West. I have been advised that in that arbitration my name was first suggested by plaintiff's counsel, and then agreed to by counsel for the various defendants. I do not recall any other arbitrations in 2001 in which I was the arbitrator and 20th (or 21st) Century Insurance, or its counsel, was involved. [ ] As to prior years, I estimate that I have been a private arbitrator in cases involving 20th (21st) Century Insurance, or its counsel, approximately from zero (0) to three (3) times per year, with a total of no more than twenty (20) to twenty- five (25) in the past ten (10) years. In addition, I have been a court appointed arbitrator for more than thirty-five (35) years, and I currently act as arbitrator in such cases approximately twenty-five (25) to thirty-five (35) times per year. I estimate that 20th (21st) Century Insurance Co., or its counsel, is involved in one (1) or two (2) of these cases per year. [ ] Further, as plaintiffs' attorneys, over the years my o
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