Airfloor Co. v. Regents of University of California

We have seen this case before. In Airfloor Co. of California, Inc. v. Regents of University of California (1978) 84 Cal.App.3d 1004 [ 149 Cal.Rptr. 130 ], we held litigation of nonarbitrable debts exceeded the scope of the proceeding to confirm the arbitration award. *741 However, concerned with the inequity to the university if it were unable to offset Airfloor’s $100,000 judgment against any judgment obtained by it against Airfloor in another action pending between the parties, we invited the university upon remand to move the trial court to stay execution. (Airfloor, supra, at p. 1009 .) Taking our advice at face value, it proceeded accordingly—unsuccessfully. It appeals from the denial of the motion, We conclude the court abused its discretion and accordingly reverse with instructions to the trial court to grant the motion.

A court has the power to stay execution of a judgment where the judgment debtor has another action pending on a disputed claim against the judgment creditor. (Erlich v. Superior Court (1965) 63 Cal.2d 551 [ 47 Cal.Rptr. 473 , 407 P.2d 649 ].) The rationale for this rule is based on equitable principles for to hold otherwise unfairly deprives the…