A homebuyer entered into a purchase agreement to buy a home. The purchase agreement included an arbitration provision, which the homebuyer initialed. After the close of escrow, the homebuyer discovered the home had severe structural damage. The buyer sued his selling broker for failure to disclose known material facts about the residence’s defects. The broker compelled arbitration of the dispute under the arbitration provision initialed by the homebuyer in the purchase agreement. The arbitrator rendered an award in favor of the homebuyer, imposing liability on the broker. The broker sought to vacate the arbitrator’s award, claiming the award was subject to judicial review since the arbitrator misinterpreted California law when rendering the award and the arbitration provision in the purchase agreement stated an arbitrator’s award must be rendered in accordance with substantive California law. The homebuyer claimed the arbitrator’s award was not subject to judicial review since the arbitrator did not act with fraud or exceed his powers in rendering the award, and the arbitration provision in the purchase agreement did not call for judicial review of the award. A California court of appeals held the arbitrator’s award in favor of the homebuyer and against the broker was not subject to judicial review for failure to comply with California law since the arbitration provision in the purchase agreement did not explicitly and unambiguously state an arbitrator’s award was subject to judicial review. [Gravillis v. Coldwell Banker Residential Brokerage Company (2010) 182 CA4th 503]
