Setareh

BACKGROUND

Setareh, as tenant, and Bierer, as landlord, entered into a commercial lease agreement, which contained arbitration and attorney fees clauses.1 When leaks at the premises caused damage to Setareh’s rug business, Setareh, instead of submitting the matter to arbitration, filed a complaint for damages, which contained a prayer for attorney fees and costs. Over Setareh’s opposition, the trial court granted Bierer’s motion to compel arbitration. The matter was arbitrated in March 2015. Setareh’s arbitration brief requested $372,707 in damages “plus recoverable costs.” The arbitrator found in Setareh’s favor and awarded damages in the amount of $210,960, the amount at which an expert

1 The arbitration clause provided, “ARBITRATION OF DISPUTES: (1) Tenant and Landlord agree that any dispute or claim in Law or equity arising between them out of this agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration . . . . The arbitrator . . . shall render an award in accordance with substantive California Law. In all other respects, the arbitration shall be conducted in accordance with Part III, Title 9 of the…