Case Number: BS146661    Hearing Date: August 01, 2014    Dept: 32

CASE NAME: Writers Guild of America, West, Inc. v. Hispafilms Corporation, et. al.
CASE NO.: BS146661
HEARING DATE: 08/01/14 [c/f 06/06/14 and 05/05/14]
DEPARTMENT: 32
CALENDAR NO.: 8
SUBJECT: Petition to Confirm Arbitration Award
MOVING PARTY: Petitioner, Writers Guild of America, West, Inc.
RESP. PARTY: None

COURT’S TENTATIVE RULING

Petition to Confirm Arbitration Award GRANTED against Respondents Hispafilms Corp. and Gijon in the reduced amount of $57,042.43 plus costs of $435.

Background

This case involves a dispute over money owed to a screenwriter in connection with a motion picture titled “Mile Zero.” According to the Petition, Hispafilms agreed to be party to a collective bargaining agreement and Gijon signed a letter of guaranty on behalf of Hispafilms. A dispute arose as to whether Hispafilms and Gijon had paid a writer certain compensation on a rewrite of a motion picture screenplay and whether they had made contributions to the WGA pension plan and health fund as contractually required by the CBA. Hispafilms and Gijon did not appear at the arbitration tribunal hearing held on September 15, 2011 and an award was entered ordering them to pay $21,375 along with $11,520.56 in interest, $8,536.88 in pension and health contributions along with $2,220.35 in interest, and half of the court reporter and arbitrator’s fee. This Petition was filed on January 15, 2014.

On May 5, 2014, the court (per Judge Mary H. Strobel) continued the hearing on the petition so that Petitioner could address the following two defects: (1) Petitioner has not shown service was proper pursuant to the arbitration agreement; (2) Petitioner only showed service on Hispafilms, and not Respondent Gijon; and (3) Petitioner did not provide interest calculations.

On June 6, 2014, the court continued the hearing on the Petition as to Respondent Gijon for proof of service on Respondent Gijon.

On June 6, 2014, the court tentatively granted the Petition to Confirm Arbitration Award against Respondent Hispafilms Corp. in the reduced amount of $57,042.43 plus costs of $435.

ANALYSIS

Service. A petition to confirm an award shall be served and filed not later than four years after the date of service of a signed copy of the award on the petitioner, but more than ten days after the service of the written notice. (CCP § 1288, 1288.4.) The arbitration award in this case was signed on October 10,
2011. (Pet., Att. 8(c)). The arbitration award was served by certified mail and
email on October 28, 2011. (Pet. Aft. 9.) The petition was timely served.

Petitioner provides proof the Petition was served by certified mail on Francisco Villegas and Robert Darwell, Esq. The requirements for service of arbitration petitions are located in CCP § 1290.4. If the agreement sets forth a method of service for the petition, that method holds. (CCP § 1290.4(a).) If the arbitration agreement does not set forth a method, service shall be made in the manner provided by law for service of summons in an action if the party has not appeared. (CCP § 1290.4(b).) Here, in the petition, Petitioner only provided a portion of the “Theatrical and Television Basic Agreement” containing the arbitration provisions. (Pet. Att. 4(B)) The petition attaches Article 10 of the Agreement which contains no provision concerning service of a petition to confirm arbitration. Accordingly, on May 5, 2014, the court continued the hearing so that Petitioner could demonstrate compliance with the service provisions for the Petition. On May 5, 2014, Petitioner submitted Article 11 of the “Theatrical and Television Basic Agreement,” which states in section 11.A.6.d that a petition to confirm an arbitration award “shall be served upon the respondent by registered or certified mail or by personal delivery.” Thus, service by certified mail was proper.

In the May 5, 2014 ruling, the court noted that Petitioner had submitted proof of service of notice of the hearing on Hispafilms only, and not on Respondent Gijon. After further review, the court notes that the guaranty allegedly signed by Gijon states that Gijon agreed that “service upon the COMPANY [i.e. Hispafilms] pursuant to the [Theatrical and Television Basic Agreement] shall constitute service upon the undersigned.” (Pet. Att. 4(B).)

On June 6, 2014, the court continued the hearing on the petition as to Respondent Gijon for proof of service on Respondent Gijon.

On June 10, 2014, Petitioner’s attorney submitted a declaration in which she verifies that Gijon agreed in the guarantee that service on Hispafilms would constitute service on Gijon. Petitioner’s attorney further declares that Petitioner served Hispafilms via certified mail on January 16, 2014, which resulted in service on Gijon as well. (Keast Decl. Regarding Service ¶¶ 2-6.) Based on the foregoing, Petitioner has shown that service on Gijon was proper.

Merits of Petition. The contents of a petition to confirm an arbitration award shall set forth the substance of or have attached a copy of the agreement to arbitrate, the names of the arbitrators, and shall set forth or have attached a copy of the award and the written opinion of the arbitrators. (CCP § 1285.4.) Petitioner has complied with these requirements. (Pet. Exh. A, D.) If a petition or response to an arbitration award is duly served and filed, the court shall confirm the award as made, unless the court corrects the award and confirms it as corrected, vacates the award, or dismisses the proceeding. (CCP § 1286.) A court may not vacate or correct an award unless a petition or response requesting that the award be vacated or corrected has been filed. (CCP §§ 1286.4, 1286.8.)

In the May 5, 2014 ruling, the court stated the following: “The Arbitrator awarded Petitioner discrete sums of money and interest accruing on those sums in differing amounts. He also ordered respondents to pay 1/2 of the Arbitrator’s and Court Reporter’s fees. The Petition seeks the sum of $58,875.00 plus interest from October 10, 2011 at the rate of 18% per year. The Petition also seeks costs of suit. Petitioner has not filed any separate declaration or points and authorities explaining how the $58,875.00 was calculated or the basis for the 18% interest rate.”

In his May 5, 2014 declaration, Petitioner’s attorney states that Petitioner was awarded $44,969.79 by the arbitrator and that Petitioner inadvertently requested $58,875 in the Petition. Petitioner’s attorney indicates that the arbitrator awarded Petitioner interest of 18% per year on the unpaid compensation component of the award, and interest of 9.96% per year on the pension plan and health fund contributions. (Keast Decl. ¶ 4.) Petitioner properly calculates additional interest on the $21,375 in unpaid compensation in the amount of $9,887.55 through May 5, 2014 (based on 18% per year.) (Id. ¶ 6.) However, it appears that Petitioner has incorrectly calculated interest on the $8,536.88 in pension plan and health fund contributions. Based on the court’s calculations, the correct amount of interest is $2,185.09 (($8,536.88 x .0996)/ 365 days x 938 days.)

Accordingly, the court GRANTS the petition to confirm the arbitration award and enter judgment thereon as to Respondents Hispafilms Corp. and Gijon in the reduced amount of $57,042.43 plus costs of $435.