An Exception To The General Rule That Errors Of Fact And Law Are Not A Basis For Reversing An Arbitrator's Award.
If you need an example of a recent case in which the parties agreed that the arbitrator shall follow the law, see Samuelian v. Life Generations Healthcare, LLC, No. G061911, G062416 & G062426 (4/3 8/20/24) (Moore, Acting P.J.).
While the general rule is that an arbitrator's mistake of law or fact is not cause for reversal, there is an exception in California. The parties can agree that the arbitrator shall follow the law. Here, the parties agreed in writing: “The Arbitrator shall not have the power to commit errors of law or legal reasoning and the award may be vacated or corrected on appeal to a court of competent jurisdiction for any such error.” That meant that the arbitrator's award could be reviewed de novo as to matters of law. Here, the arbitrator made a legal error, and as a result the award was not confirmed and was vacated instead.
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