Casden Park La Brea Retail v. Ross Dress for Less, Inc.

A commercial landlord and tenant arbitrated a rent dispute before a panel of three real estate brokers, one selected by each party and a neutral arbitrator selected by the two party arbitrators. After the arbitrators rendered an award in favor of the tenant, the landlord petitioned to vacate the award, contending the neutral arbitrator had failed to disclose prior business dealings between the neutral’s employer (an international real estate firm) and the tenant and its party arbitrator. The trial court agreed with the landlord and vacated the award, notwithstanding the fact that the neutral arbitrator had no financial or other interest in his employer’s dealings. We reverse.

FACTS

A.

Since 1982, Ross Dress For Less, Inc., has leased a commercial building from Casden Park La Brea Retail LLC. When the original term of the lease expired, Ross exercised the first of several five-year options to renew at the fair market rental value of the property. The lease provides that in the event the parties are unable to agree on fair market rental value, the dispute is to be resolved by arbitration, with each party selecting an arbitrator and the two party arbitrators selecting a…