Arbitration, POOF!: By Invalidating Portions Of An Arbitration Award And Remanding On Other Issues, Substantial Attorney’s Fees And Costs Award Against Arbitration Claimant/Counter-Respondent Also Sent Back For A Revisit

Principal Reasons For Reversal Were That Certain Aspects Of The Employment Agreement Violated Business And Professions Code Section 16600.

            Claimant/counter-claim respondent, former employee, was hammered pretty hard in an employment arbitration when the arbitrator rejected his claim for a $300,000 deferred bonus, found for employer on a counterclaim to the tune of $652,243 for an earlier bonus, dismissed a Business and Professions Code section 16600 challenge, and awarded employer $2.46 million in fees and $172,682 in costs under a discretionary fees/costs clause allowing such shifting if any party acts in bad faith.  The trial judge confirmed the award and denied a motion to vacate it.

            The 4/3 DCA reversed in Brown v. TGS Management Co., Case No. G058323 (4^th Dist., Div. 3 Oct. 13, 2020) (unpublished), a 3-0 panel authored by Justice Aronson.  It found that portions of the award violated section 16600 and other aspects had to be revisited on remand.  That also meant the fees/costs award, for now, went POOF! because it could be revisited by the arbitrator after the remand issues were considered and in light of the appellate reversal. Employee has renewed life!