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LEGAL UPDATES
Articles
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July 22, 2010
Appellate Court Holds That Arbitration Provision in CC&R’s Do Not Bind Homeowners When Asserting Claims for Construction Defects Against the Developer
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July 19, 2010
Court Upholds an Arbitration Panel’s Decision Even Though it “Shocked the Conscious” of the Court
In Lagstein v. Certain Underwriters at Lloyd’s, London, the Ninth Circuit Court of Appeals upheld an arbitration award, including a significant punitive damages award. In Lagstein, plaintiff filed a claim for benefits under a disability policy issued by certain underwriters at Lloyd’s, London.
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May 3, 2010
Court Holds that Oral Promise by a Lender Not to Foreclose Was Enforceable When the Borrowers Detrimentally Relied on It
In Garcia v. World Savings, FSB, a California appellate court recently found that borrowers who obtained a new, high-cost loan in reliance on their lender’s oral promise that their property would not be sold at a trustee’s sale sufficiently supported a claim for promissory estoppel.
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April 5, 2010
Court Refuses to Uphold Arbitration Provision With Limiting Damages Provisions
In Lhotka v. Geographic Expeditions, Inc., a California Appellate Court recently refused to impose an arbitration agreement where the clause restricted damages. In Lhotka, defendant Geographic Expeditions organized a mountain hiking expedition taken by plaintiffs. Lhotka died during the trip due to an altitude-related illness.
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March 22, 2010
Appellate Court Declines to Require Arbitrator to Follow California Law Under CAR RPA
In Gravallis v. Coldwell Banker Residential Brokerage Company, a California Appellate Court held that a court does not have discretion to review an arbitrator’s award under a California Association of Realtors’ (“CAR”) Residential Purchase Agreement (“RPA”). In Gravallis, plaintiff purchased a home using a CAR RPA and initialed the Arbitration provision. Before plaintiff moved into the home, he learned that the home had extensive structural damage that rendered it uninhabitable. Gravallis sued Coldwell Banker for failing to disclose the structural damage. The broker moved to compel arbitration. The motion was granted. The arbitrator found in plaintiff’s favor and awarded him damages of $347,671 and $47,076.35 in costs. Over the objections of Coldwell Banker, the trial court confirmed the award and entered judgment.
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