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CSAC enforces arbitration award, directs release of withheld purse to manager
Summary
After competing legal arguments, the commission voted to enforce a July arbitration award and release commission-held purse funds to manager Rick Merigian; attorneys debated jurisdiction and statutory authority under Business & Professions Code —18856.
The California State Athletic Commission voted Dec. 9 to enforce an arbitration award arising from a dispute between manager Rick Merigian and manager/contestant Arnold Barbosa and to direct release of a commission-held check to Merigian.
Executive Officer Andy Foster told commissioners the commission had received an arbitration order effective July 26, 2024, and was holding a check that could satisfy the award. Foster recommended giving Merigian his check.
George Gallegos, counsel for Arnold Barbosa, argued the commission lacked authority to withhold and collect funds from an event held in Saudi Arabia and that arbitration awards generally require court confirmation for collection. "The California Athletic Commission has no jurisdiction over any fight in Saudi Arabia," Gallegos said, and he pointed to judicial arbitration statutes describing judgment-confirmation procedures.
William Gardner of the attorney general's office responded that the arbitration at issue was an administrative arbitration conducted under the Business and Professions Code and that the administrative decision (the arbitration order) is final and binding. Gardner said the arbitrator had ordered Barbosa to pay $81,750 to Merigian plus $5,000 in cost recovery, and that Barbosa had failed to timely pay, putting him in violation of commission rules. "The decision ' is final and binding," Gardner told the commission, urging enforcement under Business & Professions Code section 18856.
Gregory Smith, counsel for Merigian, told the panel the award required payment within 72 hours and that no payment had been made. After lengthy argument about statutory authority and precedent, the commission accepted the executive officer's recommendation and voted to release the funds to Merigian.
The commission cited Business & Professions Code Section 18856 (purse withholding authority) during the discussion; counsel for both sides also referenced judicial arbitration statutes (California Code of Civil Procedure sections cited in argument) when arguing remedies. The commission recorded the motion and approved release of the check held by CSAC to satisfy the arbitration award.
