Banner Entertainment, Inc. v. Superior Court

Petitioner Banner Entertainment, Inc. (Banner) seeks a writ of mandate directing the trial court to vacate its order compelling Banner to arbitrate a dispute between Banner and real party in interest, Alchemy Filmworks, Inc. (Alchemy). We issued an alternative writ of mandate and stayed the arbitration pending determination of this writ proceeding. For the reasons explained below, we conclude that no enforceable agreement to arbitrate exists, that the trial court therefore erred by entering an order to compel arbitration, and that Banner is entitled to the writ of mandate which it seeks.

Factual and Procedural Background

Banner, as plaintiff, has filed a complaint which alleges causes of action for declaratory relief, constructive fraud, intentional and negligent interference with prospective business relations, and common counts (the action). Banner filed the action after Alchemy submitted to the American Arbitration Association (AAA) a demand for arbitration of the parties’ dispute over a purported agreement between Banner and Alchemy.

After filing the action, Banner then filed therein a motion to determine the nonarbitrability of the claims Alchemy had submitted for…