Takeaways
- The duty to initiate arbitration may fall on the party seeking redress, even if they opposed arbitration in court.
- Arbitration policies must be interpreted in conjunction with the broader arbitration agreement, not in isolation.
- Clear and precise drafting of arbitration agreements and policies is essential to avoid procedural confusion and litigation delays.
The Second Appellate District of the California Court of Appeal published an opinion shedding light on the commonly raised dispute of which party bears the burden of initiating arbitration proceedings after an order compelling arbitration. The case, Arzate v. Ace American Insurance Company, delves into the nuances of the interpretation of arbitration clauses and contractual agreements, ultimately clarifying which party is expected to take the first step in the arbitration process. As employers increasingly rely on arbitration to resolve disputes, understanding the outcome and effect of Arzate is crucial to ensuring clarity in future agreements and policies.Continue Reading Arbitration Obligations for Employers: A Decision on the Duty To Initiate