Friday, December 23, 2016

Re-Do Provision in Arb Agrement Enforced

Condon v. Daland Nissan, Inc., No. A145613 (D1d1 Nov. 29, 2016) 

The Parties
arbitration agreement contains a provision that permits a de novo arbitration before a three-arbitrator panel if a single arbitrator gives an award of $0 or over $100k. Plaintiff wins $180k, but the arbitral body refuses to constitute a de novo panel based on the fact that it doesn’t have appellate rules. On confirmation of the award, the superior court similarly declines to order a de novo arbitration. 

But they were both wrong.

The parties agreed to a de novo arbitration (not an arbitration appeal) if the original results fell outside an agreed band. The original arbitration did, in fact, result in an award over the band. The fact that the arbitral body didn’t have specific appellate rules doesn’t brook otherwise. So the trial court erred in refusing to compel the parties to use the de novo procedure they had agreed to.


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