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Federico v. Frick

Citations: 3 Cal. App. 3d 872; 84 Cal. Rptr. 74; 73 L.R.R.M. (BNA) 2810; 1970 Cal. App. LEXIS 1180Docket: Civ. 34084

Court: California Court of Appeal; January 26, 1970; California; State Appellate Court

Narrative Opinion Summary

In this case, an appellant challenges a judicial confirmation of a $12,627 arbitration award against him, arguing the absence of an arbitration agreement and alleged bias in the arbitration process. The dispute arose following the appellant's dismissal of an employee under a contract with Local 47 of the American Federation of Musicians, which included arbitration provisions. The arbitration, conducted by a union trial board, ruled in favor of the employee. The appellant claimed he was unaware of the arbitration clause, argued the contract was adhesive and contrary to public policy, and alleged bias due to the arbitrators' union affiliations. The court affirmed the arbitration award, finding no merit in the allegations. It emphasized that ignorance of contract terms does not invalidate an agreement and that statutory grounds for revocation were absent. It also noted that nonneutral arbitrators are permissible under California law if agreed by the parties, and that any legislative changes are beyond judicial scope. The appellant's failure to seek correction of the award or exhaust review procedures further undermined his position. The appellate court affirmed the judgment, and subsequent petitions for rehearing and review by the Supreme Court were denied.

Legal Issues Addressed

Arbitration and Contracts of Adhesion

Application: The court determined that while the employment contract might be considered a contract of adhesion, no evidence supported this assertion, and thus it did not render the arbitration agreement unenforceable.

Reasoning: Although the employment contract may be a contract of adhesion, there is no evidence supporting this claim.

Enforceability of Arbitration Agreements

Application: The court held that a written arbitration agreement is valid and enforceable unless there are statutory grounds for revocation, rejecting the appellant's claim of unenforceability due to failure to read the contract.

Reasoning: A written arbitration agreement is valid and enforceable unless grounds for revocation exist.

Exhaustion of Administrative Remedies

Application: The appellant's arguments were weakened by his failure to seek correction of the arbitration award or exhaust review rights under the union's bylaws.

Reasoning: Frick did not seek correction of the award, and he failed to exhaust review rights under the local's bylaws.

Failure to Read a Contract

Application: The appellant's failure to read the contract did not justify its revocation, as ignorance of the contract's terms is not a valid defense.

Reasoning: Failure to read a contract does not justify its revocation.

Nonneutral Arbitrators in Arbitration Proceedings

Application: The court found that the arbitration board's composition of union members did not constitute a statutory ground for vacating the award, as nonneutral arbitrators are permissible if agreed upon by the parties.

Reasoning: Section 1282 allows for nonneutral arbitrators if agreed upon by the parties.