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Finding no evidence that an arbitrator exceeded his powers or that he should have been disqualified, the California Court of Appeal refused to vacate an award in a dispute over compensation for a law firm's former partner.
In Soni v. Sheldon & Mak, No. BC222194, 2007 WL 853331 (Cal Ct. App. Mar. 22, 2007), Soni, a former partner of the Sheldon and Mak law firm ("the firm"), sought to have an award vacated on grounds that the arbitrator exceeded his powers or should have been disqualified for failing to disclose a prior relationship with the firm's attorney.
The Court rejected Soni's allegations that the arbitrator exceeded his power by failing to adjudicate all Soni's claims (which is not a basis for vacatur), by basing his ruling on an "unsubmitted issue" (which was submitted, though the grounds were not briefed by the parties), or by basing his ruling on "extrinsic documents" (which limits the fashioning of a remedy, not findings of liability).
Also, the Court held that the arbitrator was not subject to disqualification for failing to disclose an insignificant relationship with the law firm representing Sheldon and Mak in the arbitration hearing, especially since the arbitrator was unaware of the relationship at the time.
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