Britz, Inc. v. Alfa-Laval Food & Dairy Co.

This is an appeal from a judgment confirming an arbitration award. Appellants primarily contend that arbitration should not have been compelled in the first instance and that the arbitrator failed to disclose certain conflicts of interest. We reverse the judgment and remand the matter to superior court for further proceedings consistent with this opinion.

Facts and Procedural History

The Underlying Controversy.

The merits of the underlying controversy are not before us in this appeal. (Moncharsh v. Hetty & Blase (1992) 3 Cal.4th 1,11 [ 10 Cal.Rptr.2d 183 , 832 P.2d 899 ].) Accordingly, we only briefly summarize the rather complex facts.

Appellants are interrelated corporations that, in various combinations, contracted with respondents to buy and lease certain machines and equipment essential to the operation of a tomato paste processing plant. The total sale/lease price exceeded $1.5 million.

The plant never reached its production goals and appellants closed the plant during its first season of operation. They sold the plant at a substantial loss. They then sued respondents in Fresno County Superior Court for more than $10 million in compensatory and exemplary…