Court reverses judgment and reinstates $14 million arbitration award

Greenspan v. Manhattan Loft (2009) 2009 Cal.App. Unpub. LEXIS 8933 (California Court of Appeal, Second Appellate District, Division Three) [unpublished]. The trial court struck $12 million from a $14 million arbitration award, concluding that the parties did not submit to arbitration the issue that resulted in those damages. The court reached that conclusion by interpreting a series of contracts de novo and then using that interpretation as a starting place to understand the scope of the arbitration demand. Representing plaintiff on appeal, GMSR argued that the trial court had no power to conduct that type of analysis and that the submission was broad enough to uphold the award. GMSR also defended against a cross-appeal, which sought to vacate the award for the arbitrator’s failure to consider one of defendants’ arguments and on the basis that the award was not timely. The Court of Appeal reversed and instructed the trial court to confirm the award in full.