Victrola 89, LLC v. Jaman Properties 8 LLC
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After Victrola filed suit against the Jaman Parties, defendants moved to compel arbitration under the Federal Arbitration Act (FAA) based on the parties' real estate purchase agreement. The trial court denied the motion, finding that the procedural provisions of the California Arbitration Act (CAA), rather than those of the FAA, applied to its ruling on the motion.
The Court of Appeal reversed, finding that the parties incorporated the procedural provisions of the FAA into the agreement and thus the trial court could not look to section 1281.2(c) of the CAA to deny defendants' motion; the agreement's arbitration clause encompasses all of Victrola's claims against defendants; the FAA preempts section 1298.7 in this instance; and JP and Manheim have standing to enforce the arbitration provision. The court vacated the trial court's order, with instructions to determine whether defendants are prejudicially estopped from claiming the FAA's procedural provisions apply.
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