What is the test for determining the amount of attorney fees awarded by an arbitrator on a bad faith claim?

California, United States of America


The following excerpt is from Mave Enters., Inc. v. Travelers Indem. Co., B241807 (Cal. App. 2013):

The only remaining issue is whether the arbitrator exceeded his powers. In calculating the amount of attorney fees to award as damages on the bad faith claim under Brandt v. Superior Court (1985) 37 Cal.3d 813 (Brandt), the arbitrator used a percentage of the sum of the breach of contract damages and the bad faith punitive damages, rather

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than a percentage of the contract damages alone. The arbitrator's approach appears to be legally erroneous (Cassim v. Allstate Ins. Co. (2004) 33 Cal.4th 780, 807-812), and no party advocated it. To the contrary, both parties' submissions to the arbitrator calculated the fees as a percentage of the contract damages alone.

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