GMSR’s client, Porch.com, is an online marketplace that connects homeowners with home-service providers. Porch.com agreed to acquire Kandela, a moving services company, and the parties signed an acquisition agreement with an arbitration clause. Eventually, Kandela claimed that Porch.com had committed fraud and the parties submitted the dispute to arbitration. The arbitrator found in Porch.com’s favor and awarded attorneys’ fees. The arbitrator ruled that Kandela failed to prove fraud, and declined to consider Kandela’s allegations of pre-acquisition fraud because Kandela had not properly pled those claims in its arbitration demand. The trial court confirmed the arbitration award.
On appeal, Kandela argued that the award was incomplete—and therefore shouldn’t have been confirmed—because the arbitrator had refused to address its pre-acquisition fraud allegations. GMSR responded that affirmance was required because Kandela had omitted key documents from the appellate record. Although Kandela argued that the arbitrator had misinterpreted its arbitration pleadings, it failed to include those pleadings in the record. The Court of Appeal agreed and affirmed the judgment, holding that the inadequate record prevented appellate review of the arbitration ruling.
To read the Court of Appeal Opinion, click HERE.
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