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: Federal Civil Practice BulletinCalifornia SCT Holds that an Agreement to Have Judicial Review of the Merits of an Arbitration Award Is Enforceable under Cal. Arbitration Act
Last week, the California Supreme Court held in Cable Connection, Inc. v. DIRECTTV, Inc., No. S147767 (August 26, 2008) that an agreement to subject the merits of an arbitration award to judicial review for errors of law is enforceable under the California Arbitration Act. The U.S. Supreme Court six months earlier held in Hall Street Associates, L.L.C. v. Mattel, Inc., ___ U.S. ___, 128 S.Ct. 1396 (2008) that the contrary is true under the Federal Arbitration Act, but noted that its holding did not preempt state laws on arbitration.
This ruling has significant implications for commercial and consumer arbitration agreements. Drafters of arbitration clauses in California now have to weigh whether it is in their clients’ best interest to provide for judicial review or instead, to make the arbitration award effectively the final say on the merits of the dispute.
Full post as published by Federal Civil Practice Bulletin on September 03, 2008 (boomark / email).
Agreement May Not Expand Judicial Review of Arbitration Award
Businesses that are parties to arbitration agreements should review a recent decision by the Supreme Court of the United States where the Court held that parties to an arbitration agreement may not contract for expanded grounds of judicial review...
Supreme Court Holds Arbitration Agreement Under F.A.A.Cannot Be Reviewed For Erroneous Conclusion of Law
There is a growing tendency to incorporate mandatory arbitration clauses in employment and other agreements as an alternative mechanism to resolve disputes. Some arbitration agreements go so far as to self define the scope of judicial review of an arbitrator?s decision...
The Word on Hall Street Is No Expanded Review
The Supreme Court has issued its much-anticipated decision in the case of Hall Street Associates, L.L.C. v. Mattel, Inc. (No. 06-989). The Court held that the statutory grounds for vacating or modifying an arbitration award under the Federal Arbitration Act (FAA) are exclusive...
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On March 25, 2008, in a 6-3 opinion, the U.S. Supreme Court ruled that Sections 10 and 11 of the Federal Arbitration Act provide the exclusive grounds for vacating or modifying an arbitration award...
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Kashner Davidson v. Mscisz, No. 07-1231 (6/27/08). Want to see what a vacation of an arbitration looks like? Look here. The arbitration panel flip-flopped on whether its dismissal of counterclaims was a sanction or on the merits...
CA1: suing non-parties to arbitration agreement, doesnt get around mandatory arbitration
Sourcing Unlimited v. Asimco International, No. 07-2754 holds that a corporate signatory to a written partnership agreement that requires international arbitration of their commercial disputes may not escape arbitration of such disputes by naming as defendants two non-signatories, on the...
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