Legal Question in Business Law in California

Loss at a binding Abritration
I was buyer of a bus. I was told to take posssession so that escrow can prorate, escrow did not close, I found seller had commited fraud and failure to disclose credit rating of bus, after 30 days of having bus. I stopped the close of escrow, I was advised by an attorny to give up the store, seller then took inventory out of store and placed in storage, we went to med....then arbritration. The abritrator favored the seller based on a defacto! Since I took possession of store in a bulk sale I assumed all was good even tho escrow did not tech. close...I would like to know if I have any recorse or if I should just lick my wounds and move on

Asked on 10/28/06, 9:35 am

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

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Re: Loss at a binding Abritration

Your problem here is that the arbitration is final and binding, and you cannot appeal an erroneous decision. There are grounds for appeal from an arbitration award, but they are few and do not include legal or factual errors or unfairness. The chief grounds for appeal of an arbitration award that I can think of are (1) that the arbitrator exceeded his authority (an arbitrator cannot decide matters not referred to him by the parties' agreement to arbitrate) or fraud by the arbitrator, such as failing to disclose a conflict of interest. There may be others, but misconstruing the facts or misapplying the law are not among them.

Answered on 10/28/06, 11:59 am

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