ADR Case Updates
ADR Case Update, 11/07/05
In case you have not seen them, attached are four recent ADR cases. The first is Ovitz v. Schulman, 2005 DJDAR 12713, in which the Appellate Court (Second District, Division Four) held that the Federal Arbitration Act (FAA) standard for vacating an award due to lack of disclosure by the arbitrator does not preempt the more stringent California standard. Since the FAA does not contain any express preemptive provision, it preempts California law only where an actual conflict exists. Congress intended that the FAA's provisions regarding motions to vacate apply only in federal court proceedings, so there is no conflict here. California law requires that a court vacate an award when it determines the arbitrator failed to make required disclosures about arbitrating other matters for any of the parties. The FAA requires the court to vacate only if it finds that the arbitrator's failure to disclose created the reasonable impression of impartiality. Because the arbitrator failed to make the required disclosure, and since California law applies, the trial court's order vacating the award was affirmed.
The other three cases are: Robertson v. Health Net of California, Inc., 2005 DJDAR 11745 (arbitration clause in health care plan that was not immediately above signature line of contract or prominently displayed pursuant to Health and Safety Code section 1363.1 was unenforceable); Garrison v. Superior Court, 2005 DJDAR 1058 (daughter may enter into arbitration agreements on behalf of mother under durable power of attorney); and Villacreses v. Molinari, 2005 DJDAR 11674 (parties' failure to enter cognizable arbitration agreement - arbitration language in escrow instructions stated the parties would arbitrate all disputes to which it applied without defining "it" - rendered judgment confirming arbitration award void).
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