Arbitration: Substantial Fee Awards Of Around $672,000 By An Arbitrator Under A Contractual Fees Clause Are Affirmed On Appeal

Arbitrator’s Fee Clause Interpretation Was Immune From A Merits Challenge.

            In Mikali v. Benyamini, Case No. B316525 (2d Dist., Div. 5 May 16, 2023) (unpublished), an arbitrator interpreted a fees clause under a contractual agreement with an arbitration and fees clause, awarding certain defendants, respectively, $639,119 in fees and $32,647 in fees.  The trial judge confirmed those fees awards, with a disgruntled plaintiff appealing.  All to no avail, because the merits of an arbitrator’s fees clause interpretation are immune to challenge because the parties’ contractual agreements allowed the arbitrator to do so even if the interpretation was in error.