Copyright 2008, Marc S. Weissman
Weiss & Weissman, San Francisco, California
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ARBITRATION UPDATE

This Article is designed to be of general interest. The specific techniques and information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.

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.