Thiele

The plaintiff, Linda Thiele (Thiele), appeals from a judgment of the superior court dismissing her complaint following the sustaining of defendant American Arbitration Association’s (AAA) demurrer without leave to amend.

The central issue on appeal is whether the immunity shielding arbitrators from civil liability extends to organizations sponsoring arbitrations, and, if so, to what extent. We hold that it does and affirm.

Facts and Proceedings Below

For purposes of appeal, we accept as true the properly pleaded factual allegations of the complaint.

In December of 1990 the appellant Thiele commenced arbitration proceedings with the respondent AAA. Thereafter a hearing was held and the matter was submitted to an arbitrator for decision.

On June 21, 1991, the appellant, outside of the arbitration proceeding, agreed to settle the matter with respondents in the arbitration proceedings for $250,000. On the same day appellant informed the AAA of this development and instructed it not to release an arbitration award.

On July 2, 1991, the AAA sent out the arbitrator’s award, which was less than the settlement amount. After receiving the award, respondents in the arbitration…