Able Building Maintenance Co. v. Board of Trustees

MEMORANDUM *

The appellants, the General Employees Trust Fund and its Board of Trustees (“Trust Fund”), appeal a decision of the district court, vacating an arbitration award in part and confirming the award in part. We reverse in part and remand.

In vacating the arbitration award in part, the district court reasoned correctly that the arbitration permitted by the Trust Indenture, in Section 7.13, does not apply to the part of the dispute that relates to losses incurred by the Trust Fund as a result of “improper contributions” made by the appellee, Able Building Maintenance Company (“Able”). 1 The district court was correct that Section 7.13 applies only to the other part of the dispute—the part involving “delinquent claims.” By not participating in the arbitration proceeding, however, Able waived any objection to the arbitrator’s exercise of jurisdiction over both, rather than only one, of the two claims. Under California law, when an arbitration is conducted pursuant to a self-executing arbitration clause, as occurred here, 2 a party with notice and opportunity to appear must raise before the arbitrator any procedural objections, including those relating to the arbitrator’s…