Category: Arbitration: Fees

Arbitration, Fees, Stay, FAA: Ninth Circuit Holds That Arbitration Terminated For Party’s Inability To Pay Fees, Had Nevertheless Been Had, So District Court Should Lift Stay On Litigation

What Does It Mean For An Arbitration To “Have Been Had In Accordance With The Terms Of The Agreement” When A Party Is Unable To Pay Arbitration Fees?      We revisit a recurring problem that occurs in arbitration.  In federal court, a party successfully moves to compel arbitration under the FAA, and the court stays […]

Mandatory Fee Arbitration: Two New Committee On Mandatory Fee Arbitration Advisories

     The Committee on Mandatory Fee Arbitration of the State Bar of California has two new Advisories on Mandatory Fee Arbitration (MFA) brought under the Business & Professions Code.  Advisory 2016-01, replacing Advisory 2011-02, is about the application of the Statute of Limitations for MFAs.  Advisory No. 2016-02, replacing Advisory 2003-01, is an analysis of […]

Arbitration/Disclosure: Arbitrator Whose Practice Involved Representing Lawyers Against Lawyers Did Not Have To Disclose That Fact In Arbitration Involving Lawyer Versus Client Fee Dispute

Dissent By Justice Rubin Emphasizes That Disclosure Rules Must Be Broader Than Disqualification Rules      I have a sidebar category for “disclosures.”  Perhaps I should add one for “disqualification”, because as the lengthy dissent of Justice Rubin explains in Safarian, Choi & Bolstad, LLP v. Minassian, No. B262526 (2/8 April 7, 2016) (Bigelow, P.J.) (unpublished), […]

Public Policy: Trial Court’s Confirmation Of Arbitrator’s Attorney’s Fees Award Is Reversed Because Law Firm Simultaneously Represented Adverse Parties In Unrelated Matters.

Under California Law, Where Party Challenges An Entire Contract As Illegal Or In Violation Of Public Policy, The Question Of Enforceability Is For The Court To Decide.      A substantial fee dispute between Sheppard, Mullin, Richter & Hampton, LLP and its client J-M Manufacturing Co., Inc., resulted in an arbitrator’s award to Sheppard, Mullin that […]

Arbitration, Class, Severability, Delegation, Class Action: Court Of Appeal Holds Arbitration Clause Enforceable, Except For Severable Fees And Costs Provision In Consumer Arbitration

Fees And Costs Provision In Consumer Arbitration Was Unconscionable Here.      This case involves a common scenario in which a business sells a good or service that is financed, the business is unable to fully perform, and the lender seeks to enforce an arbitration provision when it gets sued.  Here, the Court of Appeal held […]

Arbitration, Attorney’s Fees: Voluntary Dismissal Of Court Action Comes Too Late To Avoid Attorney’s Fee Exposure Once Evidence Has Already Been Presented In Dual-Track Arbitration

December 30, 2014 · Arbitration: Fees

  When Does Trial Commence In “Dual Track” Arbitration/Litigation?     The Danger Signal. Currier & Ives.  1884.  Library of Congress.      Parties routinely avoid exposure to attorneys fees under Cal. Civ. Code section 1717 by voluntarily dismissing their action before “the actual commencement of trial”.  The meaning of “the actual commencement of trial” presented a […]

Arbitration/Fees/Vacatur: Arbitrator Who Applies Statutory Definition of “Prevailing Party” To Award Fees Rather Than Contractual Definition Does Not Exceed His Powers

Court Does Not Decide Whether Contractual Provision Limiting Arbitrator’s Power To Apply Definition Of “Prevailing Party” Other Than Found In Agreement Would Be Unenforceable As Violative Of Public Policy.      Does an arbitrator who applies the statutory definition of “prevailing party” found in Civil Code Section 1717(b)(1), rather than than the definition the parties contractually […]

Arbitration/Correction by Arbitrator/Fees: Arbitrator Exceeded Power By Substantively Revising Final Award

Also, JAMS Rules Did Not Enlarge Arbitrator’s Powers To Correct Final Award.      Cooper v. Lavely & Singer, Case No. B251508 (2/4 Sept. 26, 2014) (Manella, Epstein, Willhite) (published) offers a very instructive discussion about correction of an arbitration award. Perhaps the best lesson here is for arbitrators – be careful about issuing dicey final […]

Arbitration/Nonsignatories/Fees: Double Whammy–Judgment Confirming Arbitration Award With Party Who Didn’t Sign Arbitration Agreement Is Reversed And Denial Of Fee Award To Party Who Had Prevailed At Arbitration Is Affirmed

Guerra v. Aurora Loan Services, LLC, HO38331 (6th Dist. Sept. 19, 2014) (Mihara, Elia, Grover) (unpublished).      Chairez and Guerra entered into a “LEASE AGREEMENT with OPTION TO PURCHASE & EXTEND” (agreement) relating to a property at which Chairez and Guerra lived.  Chairez borrowed $1.1 million against the property and defaulted on the loan, resulting […]