Arbitral Finality Rule Violated, If Trial Court Could Award Arbitration Fees Never Conferred By Arbitrator.
FEHA plaintiff was forced to arbitrate her case, but was “defensed” in the arbitration although the arbitrator did not assess any attorney’s fees or costs against her. However, the defense moved to recover fees and costs, with the trial court obliging by awarding costs of almost $20,000 and fees of $158,471.25 on the basis that plaintiff’s suit was frivolous, unreasonable, and groundless (a basis to shift fees to the defense under FEHA).
Plaintiff’s appeal of the fees/costs orders in Edwards v. Broadwater Casitas Care Center, Case No. B247596 (2d Dist., Div. 5 Apr. 14, 2014) (unpublished) was largely successful in nature.
The appellate court reversed the fees/costs order except to the extent expenses were incurred to enforce the arbitration award only. The defense lost a substantial award because the arbitrator did not award fees/costs, meaning the trial court lacked jurisdiction to do anything different based on the clear wording of the arbitration agreement regarding fees/costs allocations—whether based on any trial court findings that the arbitration claims were frivolous or without merit. (Maaso v. Signer, 203 Cal.App.4th 362, 377 (2013); Corona v. Amherst Partners, 107 Cal.App.4th 701, 706 (2003).) Nevertheless, the defense was entitled to obtain costs (likely, including fees, based on a concurring opinion) for judicially enforcing the arbitration award, although plaintiff was entitled to costs on appeal, but the trial court had to decide who gets fees on appeal—although providing a hint by saying “plaintiff has largely prevailed on appeal.” Mixed bag, to say the least, but advantage to appealing plaintiff, we should add.