Saika v. Gold9/30/1996
SILLS, P. J.
Arbitration has become highly favored as an economical, efficient alternative to traditional litigation in law courts. (See, e.g., Moncharsh v. Heily & Blase (1992) 3 Cal. 4th 1, 9 [10 Cal. Rptr. 2d 183, 832 P.2d 899] ["the Legislature has expressed a 'strong public policy in favor of arbitration . . . .' "]; Ericksen, Arbuthnot, McCarthy, Kearney & Walsh, Inc. v. 100 Oak Street (1983) 35 Cal. 3d 312, 322 [197 Cal. Rptr. 581, 673 P.2d 251] ["speedy and relatively inexpensive means of dispute resolution"]; Madden v. Kaiser Foundation Hospitals (1976) 17 Cal. 3d 699, 707 [131 Cal. Rptr. 882, 552 P.2d 1178] ["common, expeditious, and judicially favored"].) And given its favored status, courts "indulge" every "intendment" to implement and give effect to arbitration proceedings. (Moncharsh, (supra) , 3 Cal. 4th at p. 9; Doers v. Golden Gate Bridge etc. Dist. (1979) 23 Cal. 3d 180, 189 [151 Cal. Rptr. 837, 588 P.2d 1261]; Pacific Inv. Co. v. Townsend (1976) 58 Cal. App. 3d 1, 9 [129 Cal. Rptr. 489].)
The "very essence" of arbitration is finality. ( Moncharsh v. Heily & Blase, (supra) , 3 Cal. 4th at p. 9; Blanton v. Womancare, Inc. (1985) 38 Cal. 3d 396, 402 [212 Cal. Rptr. 151, 696 P.2d 645, 48 A.L.R.4th 109].) By choosing arbitration, parties avoid the palaver of procedural challenges that lend, at least for a time, uncertainty to any judgment rendered in the courts. With only very narrow exceptions, an arbitrator's decision cannot be reviewed for error of fact or law; the parties do not get to appeal an adverse decision. (Moncharsh, (supra) , 3 Cal. 4th at p. 11.) " 'Conclusiveness is expected; the essence of the arbitration process is that an arbitral award shall put the dispute to rest.' " (Id. at p. 10, quoting Comment, Judicial Deference to Arbitral Determinations: Continuing Problems of Power and Finality (1976) 23 UCLA L.Rev. 948-949.) Or, to put it another way, a nonfinal arbitration is, in the last analysis, an oxymoron. (See generally, Moncharsh, (supra) , 3 Cal. 4th 1 [because of the need for arbitral finality, California Supreme Court concluded arbitration awards are not subject to review for errors of law even when, as Justice Kennard pointed out in her Dissent, the result is to tolerate substantial inJustice].)
The present case concerns an arbitration agreement between a doctor and a patient in which there is virtually no conclusiveness when the patient wins the arbitration. A trial de novo clause within the arbitration agreement purportedly allows either party to disregard the results of the arbitration and litigate in the courts when the arbitration award exceeds $25,000, but, as we explain, the practical effect of the clause is to tilt the playing field in favor of the doctor. By making arbitration virtually illusory as far as one side is concerned, the clause contravenes the strong public policy favoring arbitration. Accordingly, we conclude the trial de novo clause is not enforceable in equity. It was error for the trial court to deny the patient's petition to confirm the arbitration award in this case.
I
After Carol Lynn Saika received a chemical skin peel of her face, she sued Dr. Robert Barton Gold for malpractice, claiming she was severely burned by the process. Gold answered the complaint, denied the allegations and claimed Saika had executed an arbitration agreement. He filed a motion to compel arbitration and stay all proceedings.
Gold's requests were granted, but the arbitration resulted in a large award, $325,000, in favor of Saika. However, the arbitration agreement also contained a trial de novo clause which permitted either party to request a trial with the superior court in the event an
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