TODAY IN ADR / August 7, 2008

Arbitrator Did Not Exceed Powers by Applying Equitable Principles and Excusing Noncompliance with Notice-and-Cure Provision

The California Supreme Court held that an arbitrator did not exceed his powers by excusing noncompliance with a notice-and-cure provision because even though the arbitration agreement expressly foreclosed the arbitrator's authority to modify the notice-and-cure provision, it did not contain any unambiguous limitations on the arbitrator's authority to excuse noncompliance on equitable grounds.

In Gueyffier v. Ann Summers, Ltd., 184 P.3d 739 (Cal. 2008), Gueyffier and Ann Summers entered into a franchise agreement (the Agreement) whereby Gueyffier would open an Ann Summers store in a Beverly Hills shopping center. The store, which sold lingerie and sex toys, opened to controversy and closed shortly after the opening...