Arbitration: Broadly-Worded Legal Services Agreement Clause Justified Arbitrator Award Of Attorney’s Fees.

 

Fees Award By Arbitrator Affirmed On Appeal.

    In Callahan, Thompson, Sherman & Caudill, LLP v. PathwayData, Inc., Case No. G051511 (4th Dist., Div. 3 Nov. 10, 2016) (unpublished), arbitrator awarded fees under a broad fees clause, after attorneys prevailed, under a Legal Services Agreement stating that recovery of fees and costs could be had for “[t]he prevailing party in any action or proceeding to enforce any provision of this agreement.”  The trial judge confirmed this award, only to be faced with a challenge on appeal.  The fee award was sustained.

    The guiding principle was that where a contract both compels arbitration and awards fees to the prevailing in litigation arising out of a contract, the contractual fees provision applies to an arbitration.  (Harris v. Sandro, 96 Cal.App.4th 1310, 1314 (2002).)  The arbitrator correctly awarded fees, Justice Moore decided in a 3-0 decision.

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