Is a plaintiff bound to a binding arbitration agreement if their attorney signs a stipulation without their consent?

California, United States of America


The following excerpt is from Helaly v. DiMeo, 2d Civil No. B209460 (Cal. App. 6/17/2009), 2d Civil No. B209460. (Cal. App. 2009):

Blanton v. Womancare, Inc. (1985) 38 Cal.3d 396, is distinguishable. In Blanton the plaintiff's attorney signed a stipulation for binding arbitration without the plaintiff's consent and "contrary to her express instructions." (Id., at p. 403.) "When apprised that her attorney had submitted her dispute to binding arbitration, [plaintiff] immediately objected, and fired [her attorney]. She then hired new counsel, and through him moved to invalidate the stipulation to binding arbitration executed by [her former attorney] . . . ." (Id., at p. 400.)

Our Supreme Court concluded that the plaintiff was not bound by counsel's stipulation. The court observed that, although the plaintiff may have been bound by counsel's stipulation if she had ratified it, no such ratification had occurred: "[W]hile unauthorized acts of an attorney may be binding upon his client through ratification [citation], no ratification appears here. Immediately upon learning of the arbitration agreement plaintiff fired her attorney and engaged new counsel to set it aside." (Blanton v. Womancare, Inc., supra, 38 Cal.3d at p. 408.)

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