Copyright 2008, Marc S. Weissman|
Weiss & Weissman, San Francisco, California
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In binding arbitration, if an arbitrator makes a mistake of law, until now the Court ruled there was no appeal: binding meant binding.
A recent California Supreme Court case ruled that if the arbitration clause provided for appeal to Court in the event of a mistake of law, the appeal was allowed.
For example, if an Arbitrator awards damages to the victim of a car crash for the stock loss he incurred because he never made it to the broker to buy a hot stock, if the Arbitration clause does not allow appeal in the event of a mistake of law, the Arbitration Judgment stands.
If the Arbitration clause allows appeal in the event of a mistake of law, the Arbitration Judgment will be overturned.