Month: April 2012

Arbitration/Standard of Review: Trial Court Properly Vacated Arbitraiton Award, In Light of Unfair Procedure and Lack of Actual Notice

  Fundamental Fairness Issue Involving Lack of Notice Resulted in De Novo Standard of Review      Plaintiff and Respondent Roland Hansalik signed a promissory note with Wells Fargo Advisors, LLC, with a provision calling for arbitration before the Financial Industry Regulatory Authority (FINRA). Then Mr. Hansalik moved to Switzerland. Wells Fargo initiated arbitration through FINRA, […]

Arbitration/Employment/Enforceability: Bad Facts For Employer Result in Unenforceable Arbitration Agreement

  Employer Fired Employee Hours After He Signed Arbitration Agreement – How Much More Do You Need to Know?      Plaintiff Ruzanno instituted arbitration proceedings against defendants Spectrum, Larson, Blake, and National University. The salient fact in this case is that Ruzanno signed the arbitration agreement hours before the employer fired him, purportedly without his […]

Arbitration/Class Action Waiver: Party Cannot Be Compelled To Arbitrate Class Arbitration Where Arbitration Provision Neither Authorizes Nor Prohibits Class Action

  But Rule in Gentry Allowing For Invalidation of Class Arbitration Waiver Where Nonwaivable Statutory Rights Are At Issue Manages to Maintain Toehold      Once again, the Court of Appeal ventures into the thicket of class action arbitration waivers, threading its way around ATT&T Mobility LLC v. Concepcion, __ U.S. __ , 131 S.Ct. 1740 […]

Arbitration/Fees/Appealability: Order Denying Petition to Compel Arbitration Is Not (Necessarily) An Appealable Order

  Some Orders Denying Petitions to Compel Arbitration Are More Equal than Others      Defendant and Appellant Zani Mansouri spent over $200,000 in a patio improvements dispute with her HOA, Plaintiff and Respondent Fleur Du Lac Estates Association.  Naturally, she hoped to recover her fees and costs after the trial court earlier granted the HOA’s […]

Arbitration: Parties Are Entitled To Prejudgment Interest During Time The Trial Court Vacated Arbitration Award In Their Favor And Reinstatement Of The Award

April 20, 2012 · Arbitration: Award

  Issue of First Impression in California      Tenzera, Inc. v. Osterman, B228189 (2nd Dist. Div. 3 April 19, 2012) presents “what appears to be an issue of first impression in California.” That issue is whether prevailing parties in an arbitration “are entitled to prejudgment interest between the time the trial court vacated the arbitration […]

Arbitration/Enforceability/FAA/Construction: Arbitration Clause That The Employer Can Change Turns Out To Be Illusory

  Problem Here: Modification Provision Was Not Sufficiently Restricted So As To Exempt All Employee Claims, Accrued Or Known, From A Contract Change      Magician, Illusionist, Entertainer.  1913.  Library of Congress.      The next case takes us back to law school days:  is a contract illusory?  The case required the Court of Appeal to determine […]

Arbitration/Nonsignatories/Third Party Beneficiaries: Financial Advisor of Corporation Can’t Compel Arbitration With Corporation’s Creditors on Third-Party Beneficiary Theory

  Corporate Creditors Would Have Benefited Alright If Advisor Had Successfully Obtained Financing for Corporation — But Benefit Alone Does Not a Third-Party Beneficiary Make      One exception to the rule that a nonsignatory cannot be compelled to arbitrate a dispute is when the nonsignatory is a third-party beneficiary of the contract containing the arbitration […]

One Hundred Years Ago: 1912 Nobel Peace Prize Goes To Elihu Root For Work In International Arbitration and Cooperation

April 15, 2012 · Miscellaneous

Elihu Root Negotiated Some 40 International Arbitration Treaties      Elihu Root (1845-1937) was awarded the 1912 Nobel Peace Prize for his work in negotiating some 40 reciprocal international arbitration treaties and in promoting international cooperation.  Root was a prototype for the twentieth-century  “wise man” – enormously successful as a private attorney, he also accepted appointments […]

Arbitration/Nonsignatories: Second District, Division 5 Refuses to Enforce Arbitration Agreement Against Nonsignatory Broker

  Opinion Not For Publication Rejects Dictum In Published Opinion      Nonsignatories to arbitration agreements may find themselves bound to arbitrate if they are agents of a signatory party to the transaction. But that didn’t happen to the real estate brokers here. 3118, LLC v. CBD Investment, Inc., B234706 (2nd Dist. Div. 5 April 10, […]

Arbitration/Pending Cases: Consumer Car Arbitration Riding on New Treads As Ninth Circuit "Recalls" Opinion in Kolev v. Euromotors West/The Auto Gallery

  Axle of Evil:  Opinion Withdrawn in Kolev v. Euromotors West/The Auto Gallery Was Critical of Pre-Dispute Binding Arbitration Where Automobile Problems and Magnuson-Moss Warranty Act Are Concerned      On April 11, 2012, the Ninth Circuit withdrew the Opinion in Kolev v. Euromotors West/The Auto Gallery, 586 F.3d 1024 (9th Cir. 2011), explaining that it […]