Category Archives: Arbitration and Mediation

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Revised Construction Industry Arbitration Rules Adopted by American Arbitration Association

The American Arbitration Association (“AAA”) issued revised Construction Industry Arbitration Rules which took effect July 1, 2015.  There are significant changes in the new rules which are intended to make the arbitration process more efficient and cost-effective.  The changes include several completely new rules which provide expanded authority to the arbitrator to control the course … Continue Reading

Developers May Require That Construction Defect Disputes Be Resolved Through Arbitration

The California Supreme Court recently ruled that developers – by including an arbitration provision under the Federal Arbitration Act (FAA) in Homeowners’ Association Covenants, Conditions and Restrictions (“CC&R’s”) – may require that construction defect actions be resolved through arbitration rather than by jury trial. In Pinnacle Museum Tower Assn. v. Pinnacle Market Development (US), LLC, … Continue Reading

Arbitrators can decide validity of arbitration provision in construction contracts

Binding arbitration of construction disputes is frequently required by standard industry contracts. For example, the contract forms published by the American Institute of Architects either require or provide an option for arbitration under the Construction Industry Rules of the American Arbitration Association (“AAA”). The latter rules authorize the arbitrator to decide whether the contractual arbitration … Continue Reading

Construction Arbitration Clause Calling for Expanded Judicial Review Must be Explicit and Unambiguous

By Robert Sturgeon Parties to construction arbitrations who are disappointed with the arbitrator’s award are often doubly-disappointed to learn that they have very little chance of successfully appealing in a court to overturn the arbitrator’s decision. Because arbitration is intended to be a final and complete alternative dispute resolution process, judicial review of the arbitrator’s … Continue Reading

Court Of Appeal Vacates $3 Million Arbitration Award Because Arbitrator Failed To Make Timely Disclosures

By Robert T. Sturgeon The California Court of Appeal has vacated an arbitration award of over $3 million in damages and attorney’s fees on the grounds that the arbitrator failed to disclose that he would entertain offers to serve as an arbitrator in other cases involving the parties or their attorneys, and failed to timely … Continue Reading
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