Category: Arbitration: Construction of Agreement

Arbitration/Fees/Construction of Agreement: Broadly Worded Fee Provision, Including More Than Arbitration, Results in Reversal of Trial Court Order That Had Denied Fees to Prevailing Party

  “Dispute Resolution” Encompassed More Than Arbitration     Dispute resolution provisions in a contract often provide for attorney’s fees, and when they do, distinctions between such terms as "dispute resolution", "arbitration", "mediation", "lawsuit", and "legal proceeding" may become very significant. Such was the case in Toro Enterprises, Inc. v. Pavement Recycling Systems, Inc., Case No. […]

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: 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  Opinion Not For Publication Rejects Dictum In Published Opinion      Nonsignatories to arbitration agreements may find themselves bound to arbitrate if they are agents of a signatory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/Class/FAA/Standard of Review: United States Supreme Court Denies Certiorari In Sterling Jewelers Inc. v. Jock

  District Court May Not Decide Whether The Arbitrator "Got It Right"       On March 19, 2012, the United States Supreme Court denied a petition for a writ of certiorari in an interesting employment company-wide gender discrimination case. Sterling Jewelers Inc. v. Jock, 646 F.3d 113 (2nd Cir. 2011), cert. den., 2012 WL 3356. The […]

Construction of Arbitration Clause: Clear Enough to Require Reversal of Order Denying Arbitration

  First District, Division 3, Takes Practical Approach to Interpreting Arbitration Clause Between Two Merchants.      The next case is a fount of curious factoids – such as (1) there is an American Spice Trade Association (ASTA) with its own set of arbitration rules; and (2) in 2009 a multi-state outbreak of Salmonella Rissen was […]

Arbitration: 1st District, Div. 5, Finds No Error In Trial Court’s Decision Invalidating One-Sided Arbitration Clause in Employment Agreement

  Delegation to the Arbitrator of the Power to Decide Whether the Arbitration Clause is Unconscionable Is “Horse of a Different Color” That Must Satisfy High Evidentiary Standard      The employer, CantorCo2e, L.P., and an executive, appealed from an order denying their petition to compel arbitration of the claims under the Federal Arbitration Act (FAA) […]

Arbitration: Interpretation of Arbitration Provision By Sixth District Leads to Vacating Trial Court’s Order Compelling Employee to Arbitrate

  Drafting Mistake by Employer Means Employer Must Accept the Consequences      When the employer drafts an arbitration provision, and the Court of Appeal opines, “[i]t appears that there was a huge drafting mistake,” as it did in the next case, you know that the employer is going to have a bad day in court. […]

Incorporation of Rules/CCP section 1281.2: Arbitration Agreement is Self-Executing Where Arbitration Clause Incorporates Existing Rules of AAA

  “Self-executing” Means Party Does Not Have to File Petition Pursuant to CCP 1281.2 to Compel Arbitration      In Tutti Mangia Italian Grill, Inc. v. American Textile Maintenance Co., 197 Cal.App.4th 733, 128 Cal.Rpr.3d 551 (2011) a dispute arose between ATM, a supplier of restaurant lines, and TMIG, a restaurant. ATM commenced an arbitration pursuant […]

Enforceability/Mandatory Fee Arbitration/Fee Dispute/Standard of Review: Binding Fee Arbitration Under the Mandatory Fee Arbitration Act is an Oxymoron and Resulting Award is Unenforceable

    Arbitration Agreement Containing Inconsistencies Between California Arbitration Act (CAA) and Mandatory Fee Arbitration Act (MFAA) is Interpreted Against the Law Firm That Drafted It      “The fundamental problem in this case . . . arises from an internal inconsistency in the arbitration clause, which states that “[a]ny dispute pertaining to the fees owed […]