Ahern v. Asset Management Consultants, Inc.Annotate this Case
The superior court granted the petition filed by the BH parties to confirm an arbitration award dismissing the investment fraud claims of the Ahern parties as barred by the governing statutes of limitation; denied the Ahern parties' petition to vacate or correct the award; and entered judgment in favor of the BH parties. The arbitration was conducted pursuant to the arbitration provision in the co-tenancy agreement between BH & Sons and tenant in common investors in commercial property.
The Court of Appeal reversed and concluded that the trial court erred in compelling arbitration of the Ahern parties' claims under the arbitration provision in the co-tenancy agreement. In this case, the co-tenancy agreement contains a narrow arbitration provision; the investors did not pool funds through the co-tenancy agreement for the purchase of tenant in common interests; the Ahern parties' extracontractual claims are not "rooted in" the co-tenancy agreement; and Civil Code section 1642 does not authorize importing the arbitration provision into the tenant in common purchase and sale agreement.