Magness Petroleum Co. v. Warren Resources of California, Inc.

Summary

This case presents the question whether Magness Petroleum Company and Warren Resources of California, Inc., partners in a joint venture, are required to arbitrate their current dispute before the American Arbitration Association (AAA), or before G. Keith Wisot, a retired judge associated with Judicial Arbitration and Mediation Services, Inc. (JAMS). The joint venture agreement required arbitration of the current dispute before AAA. However, the parties stipulated in writing to arbitrate an earlier dispute before Judge Wisot. During pendency of the earlier arbitration, Judge Wisot concluded— based on his recollection and notes of an arbitration session—that the parties orally agreed to his jurisdiction over all future disputes.

We conclude an oral modification of a written agreement to arbitrate is not specifically enforceable, and the trial court therefore erred in denying the petition of Magness Petroleum Company to compel arbitration before AAA in accordance with the written agreement of the parties.

Factual and Procedural Background

Magness Petroleum Company is a joint venturer with Warren Resources of California, Inc., and several related entities under…