Stone & Youngberg, LLC v. Kay Family Revocable Trust UAD 02-07-90 FBO Lenore Bleadon Under Trust A

MEMORANDUM

Plaintiff Stone & Youngberg, LLC, sued defendant Kay Family Revocable Trust UAD 02-07-90 FBO Lenore Bleadon Under Trust A under the Federal Arbitration Act, 9 U.S.C. §§ 1-16 , after Defendant received a favorable arbitration award. The district court denied Plaintiffs motion to vacate the award and granted Defendant’s motion to confirm it. Reviewing de novo, Collins v. D.R. Horton, Inc., 505 F.3d 874, 879 (9th Cir.2007), we affirm.

1. The arbitration panel did not exceed its powers within the meaning of 9 U.S.C. § 10 (a)(4) because it did not manifestly disregard the law. See Bosack v. Soward, 586 F.3d 1096, 1104 (9th Cir.2009). The arbitration panel may have accepted a theory of liability under California negligence law according to which Plaintiff was liable because of its allegedly inadequate due diligence. Notwithstanding the legal authorities it cited to the arbitration panel, Plaintiff has not demonstrated “that the arbitrators recognized the applicable law and then ignored it.” Lagstein v. Certain Underwriters at Lloyd’s, London, 607 F.3d 634, 641 (9th Cir.), cert. denied, — U.S. -, 131 S.Ct. 832 , 178 L.Ed.2d 558 (2010) (emphasis added) (internal quotation…