Does a court have the authority to review an arbitration award where an unlicensed contractor has been found to be a licensed contractor?

California, United States of America


The following excerpt is from SingerLewak LLP v. Gantman, 193 Cal.Rptr.3d 672, 241 Cal.App.4th 610 (Cal. App. 2015):

More recently, in Ahdout v. Hekmatjah (2013) 213 Cal.App.4th 21, 152 Cal.Rptr.3d 199 (Ahdout ), the court concluded judicial review of an arbitration award was required because, if the losing party was correct, the award would contravene the explicit legislative expression of public policy embodied in section 7031 regarding unlicensed contractors. In the underlying arbitration, the appellant sought, among other things, disgorgement of construction costs, pursuant to section 7031, which mandates disgorgement of compensation received by an unlicensed contractor. The arbitrators rejected the claim, concluding the respondents were not required to disgorge the construction costs and, essentially, that section 7031 did not apply. (213 Cal.App.4th at p. 28, 152 Cal.Rptr.3d 199.) The trial court rejected the losing party's petition to vacate the award, reasoning it did not have the power to review the arbitrators' decision for errors of fact or law. (Id. at p. 29, 152 Cal.Rptr.3d 199.)

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