National Union Fire Insurance v. Stites Professional Law Corp.

I. Introduction

National Union Fire Insurance Company of Pittsburgh, Pa. (National) appeals from a superior court order denying National’s petition to confirm an arbitration award and awarding costs to the respondent, Stites Professional Law Corporation (Stites). The order is appealable pursuant to Code of Civil Procedure section 1294, subdivision (d). The trial court concluded that the attorney’s fee dispute between National and Stites was not subject to arbitration pursuant to Business and Professions Code section 6200 et seq. The trial court directed, “Judgment denying the petition is ordered entered for [Stites] for costs.” We agree that the dispute between National and Stites was not subject to arbitration under section 6200 et seq. Therefore, we affirm the order insofar as it denied National’s petition. However, we find that it was error to award costs to Stites. Therefore, we reverse the order in that limited respect.

II. Background

National issued a “Directors and Officers Liability and Corporation Reimbursement” policy of insurance to Commercial Bank of California (Bank). The policy provided coverage for losses suffered by the Bank arising from any wrongful…