CBCO, Inc. v. Grani Installation, Inc.

We are presented with two appeals from two contradictory orders in an arbitration matter. We reverse the orders.

CBCO, Inc., as general contractor, entered into a contract with Grani Installations, Inc., to perform work on buildings being constructed for State Farm Mutual. The contract contained an arbitration clause; 1 State *293 Mutual was not a party to that contract. A disagreement arose between the parties and Grani filed an action in municipal court against CBCO and State Mutual, for breach of contract. CBCO moved in municipal court for an order staying the action and directing arbitration. That motion was denied for lack of jurisdiction, but proceedings were stayed to permit CBCO to apply for such relief in superior court. Such a petition was filed resulting, after hearing, in an order denying arbitration. CBCO has appealed from that order. (Code Civ. Proc., § 1294.)

Thereafter, at the insistencies of CBCO, an arbitration was held, over the objection of Grani and without appearance by it, resulting in an award in favor of CBCO. Grani then moved for an order vacating the award on the ground that, because of the order denying arbitration, the arbitrators had no…