Grinham

Parties to a contract which calls for mandatory arbitration, arbitrate an action for breach of contract. One of the parties moves to join third parties to the arbitration. The third parties participate in the arbitration to contest that they are bound by the contract. They prevail. Here we hold that in a later action, the third parties may assert the doctrine of collateral estoppel against a party to the contract and the arbitration. We affirm the summary judgment in favor of Philip and Judy Fielder.

Facts

On September 7, 1999, Triple A Machine Shop (Triple A) obtained a judgment in Contra Costa County for $14,822, plus costs and interest, against Ronald J. Grinham. The judgment was unsatisfied and on August 4, 2000, Triple A brought an action in Ventura County against appellant Grinham and others to set aside allegedly fraudulent property transfers by Grinham.

Grinham cross-complained against respondents Philip and Judy Fielder, alleging causes of action for declaratory relief and contribution. The Fielders answered the cross-complaint and pleaded the defenses of res judicata and collateral estoppel. They also sought summary judgment based upon those…