C.A. 2nd;
B269427

The Second Appellate District affirmed in part and reversed in part a judgment and orders confirming in part an arbitration award. The court held that the evidence failed to support the arbitrator's finding of an enforceable three-year contract for services.

Global Sign Systems, Inc. entered into a contract with Friendly Franchisees Corporation (FFC) to redo the signage at various Carl's Jr. restaurant franchises owned by FFC. It allegedly later also entered into an agreement with FFC to remodel, or “reimage,” all of the 66 Carl's Jr. franchises owned by FFC, over a three-year period, starting with FFC's Baldwin Park store. Global performed the sign work for the remodel of the Baldwin Park store in July 2008, and FFC paid Global for the work. FFC then placed the broader reimaging project “on hold.” According to Global, when the work was placed on hold, several of its outstanding invoices for prior work remained unpaid. Global sued FFC to recover $114,823.72 allegedly owed on the unpaid invoices. FFC filed a cross-complaint. A few weeks before trial, the parties agreed to submit the dispute to arbitration. Five years later, the arbitrator awarded Global $1,154,793.72 in damages, including lost profits, plus prejudgment interest, costs, and attorney fees. The arbitrator also added four affiliates of FFC as joint and several obligors under the award.