Asher

South Bay Radiology Medical Associates v. W. M. Asher, Inc.

Bad Law
220 Cal. App. 3d 1074·269 Cal. Rptr. 15
Court of Appeal of CaliforniaApril 24, 1990D009990California8,283 words

Opinion

lead Opinion

Benke, J.

In this case a radiologist, appellant W. Michael Asher, M.D. (Asher), opposes confirmation of an arbitration award which upheld a covenant not to compete. The covenant was set forth in a partnership agreement which Asher executed. Although the validity of such a restraint on trade is reviewable by a court asked to confirm an arbitration award, like the arbitrator we find the covenant in this case is valid. Accordingly we affirm the trial court’s order confirming the arbitration award.

Factual Summary

On January 1, 1975, Asher and another doctor formed South Bay Radiology Medical Associates (South Bay) as a partnership. The partnership was engaged in the practice of medicine and in particular radiology. Over the years the partnership expanded to include four doctors.

As of January 1, 1986, the partnership agreement contained two provisions which are pertinent to resolution of the issues before us. Paragraph 4.4 (c) provides that in valuing interest of a withdrawing or dissolving partner “No allowance shall be made for goodwill, trade names or other intangible assets; provided, however, that the remaining Partners shall be entitled to use the trade names of the…

concurrence Opinion

Wiener, J.

I agree we should affirm the judgment confirming the $450,000 arbitration award. Asher does not challenge the economic components of the award—each is admittedly legal; he did not seek to vacate or correct the award at the trial court by filing a timely *1085 response under Code of Civil Procedure sections 1285.8 and 1290.6; and he has accepted the money.

The court did not rule on the validity of the covenant and significantly the judgment says nothing about it. The alleged “illegality” of the award is simply nonexistent. In such circumstances, because our review is governed by statute (Code Civ. Proc., §§ 1286.2, 1286.6.) and Asher has failed to assert any of the statutory grounds, we are jurisdictionally required to affirm the judgment.

I assume the majority’s decision to expand our jurisdiction in this case is based on the statements in the arbitrator’s letter explaining his decision. 1 Implicitly, the majority treat these statements as a binding part of the arbitration award. By confirming the award, so the theory goes, the superior court has not only validated the amount of the award, it has also affirmed the arbitrator’s conclusion that the covenant is facially valid.

The…

Opinion

In this case a radiologist, appellant W. Michael Asher, M.D. (Asher), opposes confirmation of an arbitration award which upheld a covenant not to compete. The covenant was set forth in a partnership agreement which Asher executed. Although the validity of such a restraint on trade is reviewable by a court asked to confirm an arbitration award, like the arbitrator we find the covenant in this case is valid. Accordingly we affirm the trial court's order confirming the arbitration award.

On January 1, 1975, Asher and another doctor formed South Bay Radiology Medical Associates (South Bay) as a partnership. The partnership was engaged in the practice of medicine and in particular radiology. Over the years the partnership expanded to include four doctors.

As of January 1, 1986, the partnership agreement contained two provisions which are pertinent to resolution of the issues before us. Paragraph 4.4 (c) provides that in valuing interest of a withdrawing or dissolving partner "No allowance shall be made for goodwill, trade names or other intangible assets; provided, however, that the remaining Partners shall be entitled to use the trade names of the Partnership. No…

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