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Procedural Posture

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Plaintiff appealed from a judgment of the Superior Court of San Diego County (California), confirming an arbitration award against it and an underlying order denying its application for a preliminary injunction for relief from arbitration.

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Overview

As a result of problems that arose from improper use of construction materials, residents of a complex complained that their kitchen cabinets were becoming stained and discolored. After a claim was made against defendant subcontractor’s insurer, the insurer settled the claim. The arbitrator made findings that the insurer was a subrogee entitled to maintain the arbitration in the name of defendant subcontractor. Defendant prevailed in the arbitration proceedings. Defendant brought a petition to confirm the award, which was granted. Plaintiff appealed, and the court reversed. By denying the injunction, the trial court went beyond the scope of the contractual issues presented, into the equitable arena of subrogation law, but failed to resolve the issues correctly. The complaint and declarations roughly outlined legal issues that should have remained within the province of the trial court.

Outcome

Judgment was reversed. By denying injunction, the trial court went beyond the scope of contractual issues presented, into the equitable arena of subrogation law, but failed to resolve the issues correctly.

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