Airfloor Co. of California v. Regents of University

This case requires we decide whether certain affirmative defenses may be raised in response to a petition to confirm an arbitration award (Code Civ. Proc., § 1285 et seq.).

By agreement, a dispute between petitioner, Airfloor Company of California, Inc. (Airfloor), and the Regents of the University of California (Regents) was submitted to arbitration. The board of arbitration, composed of executives of the University of California, awarded Airfloor $99,852.19 for extra work performed in the construction of facilities at the San Diego campus of the university. Airfloor petitioned the superior court to confirm the award. In response, Regents did not contest the award but claimed entitlement to set off an alleged debt, not subject to arbitration, in the sum of $418,137.87. The debt is denied by Airfloor and it is the subject of litigation currently pending in the Superior Court for Alameda County. Regents further contend Airfloor does not have legal capacity to sue because it did not comply with the Contractors License Law (Bus. & Prof. Code, § 7031; Franklin v. Nat. C. Goldstone Agency, 33 Cal.2d 628 [ 204 P.2d 37 ]).

We agree with the trial court, Litigation of a…