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(A version of this article appears in the California
Construction Law Reporter, published by the West Group.)
By
James E. Acret
In
a dispute arising out of a joint venture agreement, arbitrators
issued an Interim Award, a [Tentative] Final Award, a Final
Award and a Final Award (Corrected).
The
award recognized that the parties had terminated their agreement
by mutual consent and required appellant to diligently develop
and market a product and pay royalties to respondent. It
provided that the arbitration agreement would apply to any
dispute arising under or related to the final award. The
trial court confirmed the award. Affirmed. Ajida Technologies,
Inc. v. Roos Instruments, Inc., ___ Cal.App.4th ___,
___ Cal.Rptr.2d ___, 2001 DJDAR 2213 (2001).
Whether
the agreement to arbitrate survives such termination of
the contract is an issue of first impression. The arbitration
clause was broadly worded to apply to any disputes, and
the arbitrators' decision is rationally drawn from the arbitration
agreement. It is not irrational to extend the operation
of the arbitration agreement to controversies arising from
the award itself.
Here,
the arbitrators did not reserve jurisdiction over an existing
dispute but determined that the arbitration agreement would
apply to disputes that might arise in the future. This provision
for future arbitration does not rob the award of its finality.
The strong policy in favor of finality is directed against
judicial second-guessing and not against a determination
by arbitrators that an arbitration agreement will apply
to future disputes.
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