Author: calmediation

Arbitration/Automobiles/Severability/Unconscionability/FAA: Case Is Remanded So Trial Court May Determine Whether Unconscionable Provisions In Automobile Installment Sale Contract Are Severable

  Sixth District Does Agree That Federal Arbitration Act Preempts California Consumers Legal Remedies Act, So Class Action Waiver In Arbitration Clause Is Enforceable      Jalopy that has seen better days.  Carol M. Highsmith, photographer.  Library of Congress.       An arbitration clause that is “permeated with unconscionability” need not be enforced.  Here, the scorecard in […]

Arbitration/Nonsignatories: Second District, Div. 2 Agrees That Appellant Failed To Establish Exception To General Rule That Nonsignatories Cannot Compel Arbitration

April 13, 2014 · Arbitration: Nonsignatories

Simple Failure Of Proof Dictated The Outcome      Generally, a nonsignatory to an arbitration provision cannot compel arbitration.  However, under certain circumstances a nonsignatory may invoke or be bound by an arbitration provision:  “‘(a) incorporation by reference; (b) assumption; (c) agency; (d) veil-piercing or alter ego; (e) estoppel; and (f) third-party beneficiary’”.  Suh v. Superior […]

Arbitration/Vacatur/Deadlines: Too Late To Correct Arbitrator’s Award In High-Low Arbitration, Appellant Could Still Enforce “High-Low” Limit To The Award With Motion Requiring A Satisfaction Of Judgment

Once Again, Fourth Appellate District Demonstrates That Often There’s More Than One Way To Skin A Cat Where Arbitration Deadlines Are Involved      Cats.  1927.  Library of Congress.      On April 4, 2014, we posted about the way a plaintiff found to get around a deadline in arbitration:  after the time ran out to modify […]

Arbitration/Deadline/Delegation/Vacatur: Fourth District, Div. 1 Affirms Trial Court’s Order Denying Plaintiffs’ Motion To Vacate Award Because Parties Agreed Arbitrators Could Decide Whether The Arbitration Was Timely — Or Not

Arbitrators Acted Within Their Powers, So It Didn’t Change Results Even If They Erred      In the underlying dispute, Plaintiffs obtained a substantial award of $150,000 compensatory and $302,784 in punitive damages, blown out when the Court of Appeal ruled that the dispute, related to lease provisions, was subject to arbitration.  Defendants then moved, successfully, […]

Arbitration/Class Action Waiver/FAA/Consumers: Court of Appeal Holds That Agreement Inviting Consideration Of Unenforceability Of Class Arbitration Procedures Allowed Trial Court To Invalidate Class Action Waiver

  Sticking To Its Contract Interpretation Guns, Second District, Division One, Shoots Down Federal Decisions      The Court of Appeal has upheld a trial court order denying a motion to dismiss or stay class action litigation and to compel arbitration, basing its conclusion on principles of contract interpretation.  Imburgia v. DIRECTV, Inc., B239361 (2nd Dist. […]

Arbitration/Deadlines: After Time Ran Out To Modify Arbitration Award, Plaintiff Could Still Seek To Amend Judgment To Add Additional Party

Plaintiff Finds Way Around JAMS Deadline      The next case illustrates the fundamental point that an arbitration award is not the same as a judgment, and that even after the time has expired under the governing arbitration rules to amend the award, it may still be possible to amend the judgment confirming the award.  Butler […]

Arbitration/FINRA: Ninth Circuit Rules That Federal District Court Forum Selection Clause Trumps Financial Industry Regulatory Authority Arbitration

April 1, 2014 · Arbitration: FINRA

Court, Rather Than FINRA, Gets To Determine Arbitrability Of Dispute       Reno, Nevada, issued $211M in complex securities, known as auction rate securities (ARS).  After the market for ARS collapsed in 2008, Reno sought FINRA arbitration with Goldman, Reno’s underwriter and broker-dealer.  Reno’s theory was that if it had known that ARS were routinely propped […]

Arbitration/Pending Cases: SCOTUS Declines Hearing of Delaware Chancery Court Petition Seeking That Chancery Court Judges Be Allowed To Oversee Private Arbitrations

March 25, 2014 · Pending Cases

Closed System Of Business Arbitration Overseen By Judges Collides With First Amendment Right Of Access                                                                 Möbius  Strip.  Wikimedia Commons.  Author:  David Benbennick.  GNU Free Documentation License, v. 1.2.      On February 26, 2014, I posted the Delaware Chancery Court  had petitioned SCOTUS to allow the Chancery Court to oversee private arbitrations.   An arbitration […]

Mediation/Condition Precedent: Fifth District Holds Homeowners Must Comply With Contractual Prelitigation Procedures With Homebuilder, Which Procedures Included Nonbinding Mediation

Failure Of Contractual Dispute Resolution Procedures In Contract To Track Protections In The Right To Repair Act Did Not Make The Provisions Unconscionable      The Right To Repair Act, Civ. Code sections 895 et seq., (Act) require a homeowner to provide a builder with notice of defects and an opportunity to investigate and repair them.  […]