C.A. 3rd;
C080397

The Third Appellate District affirmed a judgment. The court held that an arbitration award served as res judicata to bar a lawsuit against the prior defendant's licensee.

Cal Sierra Development, Inc.'s predecessor and Western Aggregates LLC entered into a mutual operations agreement allowing them to jointly mine the Yuba Goldfields. Cal Sierra had the superior right to mine for precious metals, subject to certain exceptions, and Western had the subordinate right to the surface estate. Western entered into a license agreement with George Reed, Inc., permitting Reed to locate a mobile asphalt plant on a portion of the Yuba Goldfields. A dispute arose when Cal Sierra's gold mining dredge was on course to collide with the asphalt plant. Cal Sierra altered the dredge course and demanded arbitration to settle the dispute. The arbitration panel found for Cal Sierra on its claim of breach of contract, but found Cal Sierra failed to prove its tort claims of trespass, nuisance, and conversion. After the arbitration was complete, Cal Sierra sued Reed and its parent company for trespass, intentional inference with contract, and negligent interference with economic relations.