How have courts interpreted delegation clauses in an arbitration agreement?

California, United States of America


The following excerpt is from Ashcraft v. M, E065660 (Cal. App. 2017):

"For this reason, when a party is claiming that an arbitration agreement is unenforceable, it is important to determine whether the party is making a specific challenge to the enforceability of the delegation clause or is simply arguing that the agreement as a whole is unenforceable. If the party's challenge is directed to the agreement as a wholeeven if it applies equally to the delegation clause the delegation clause is severed out and enforced; thus, the arbitrator, not the court, will determine whether the agreement is enforceable. In contrast, if the party is making a specific challenge to the delegation clause, the court must determine whether the delegation clause itself may be enforced (and can only delegate the general issue of enforceability to the arbitrator if it first determines the delegation clause is enforceable)." (Malone v. Superior Court (2014) 226 Cal.App.4th 1551, 1560.)

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