Answered Essay: Mr. Smith (buyer) and Mr. Jones (seller) entered into a written real estate contract to purchase

Mr. Smith (buyer) and Mr. Jones (seller) entered into a written real estate contract to purchase Mr. Jones shopping mall which is located in Los Angeles, CA. Mr. Smith just notified Mr. Jones that he changed his mind, doesn’t think it is a good deal, and refuses to go forward with the purchase. Mr. Jones has suffered loses from this breach of contract (fees he paid his attorneys to review the contract, loss of sale opportunity, etc.) Mr. Jones has contacted his attorneys and requested them to proceed with a civil lawsuit for damages against Mr. Smith. However, the following Arbitration Clause / Provision, with the written contract, was signed / initialed by both the parties (Buyer & Seller).

B. You decide to go to arbitration; however, you’re unsuccessful with your argument in front of the arbitrator. The arbitrator rules in favor of Mr. Smith. You feel the arbitrator never read any of the documents you submitted and did not correctly apply the principles of contract law. What basis, if any, can you file an appeal of the arbitrator’s decision in civil court? Explain the legal basis / grounds required for an appeal before a court based on a ruling by an arbitrator? (30 points)

Expert Answer

Arbitration is an alternative to court action where there is a private, judicial determination of a dispute by an independent third party whose decision is generally just as final and binding as that of a judge overseeing litigation. It is the most widely used form of ADR and is usually voluntarily agreed to by both parties to the action.

Here, in this case, both the parties mutually agreed to present their argument before an arbitrator. It is the responsibility of the arbitrator to check the facts carefully on both the sides and present a feasible solution to the problem. And it is also responsibility of the arbitrator to give an ethical decision in an alternate dispute resolution (ADR). As per Jones, the arbitrator did not verify any documents that is submitted to him and did not correctly apply principles of contract law.

The contention of the Jones is correct. As per the principles of the contract law, when two parties enter into a written contractual agreement, they should adhere to the contractual terms. Any breach of the contract leads to violation of the contract and the party which violated the contract is liable to pay to the other party for the damages (loss of opportunity, attorney fee, and any other fees) caused by the them due to the agreement.

So, from this case, we can conclude that the arbitrator was in favor of Smith, which was unethical as per the arbitrator’s job. So, based on this unethical hearing, Jones can file an appeal of the arbitrator’s decision in the civil court for justics.

ADR is not the appropriate choice for all disputants or all legal disputes. Many individuals and entities still resist ADR because it lacks the substantive, procedural, and evidentiary protections available in formal civil litigation. For example, parties to ADR typically waive their rights to object to evidence that might be deemed inadmissible under the rules of court. Hearsay evidence is a common example of evidence that is considered by the parties and intermediaries in ADR forums but that is generally excluded from civil trials. If a disputant believes that he or she would be sacrificing too many rights and protections by waiving the formalities of civil litigation, ADR will not be the appropriate method of dispute resolution.

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