Ashburn v. AIG Financial Advisors, Inc., 2015 Cal. App. LEXIS 113 (Cal. App. 1st Dist. February 6, 2015)

An order to compel arbitration is appealable only from a judgment confirming the arbitration award.

A court compelled the plaintiffs’ claims to arbitration based on an arbitration clause contained in a new account form signed by the plaintiffs. The plaintiffs alleged that they never received copies of the arbitration agreement that was to accompany the new account forms they signed and, therefore, the agreement was invalid. The court decided to compel the plaintiffs’ claims to FINRA arbitration without holding an evidentiary hearing on the issue of whether they received the arbitration agreement. After the arbitration concluded and the arbitration award was confirmed by the court, the plaintiffs filed an appeal of the court’s decision to compel arbitration. The defendant objected, arguing that the decision to compel arbitration was not appealable since the plaintiffs failed to move to correct the arbitration award. Ultimately, the court held that the plaintiffs had a right to appeal the decision to compel their claims to arbitration subsequent to the judgment confirming the arbitration award. The court further held that the lower court, in compelling the claims to arbitration without an evidentiary hearing on the issues raised by the plaintiffs, abused its discretion, warranting a reversal of the decision and a remand of the matter.

Case Law Alerts, 2nd Quarter, April 2015

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