Currency Corp. v. Wertheim
When a borrower and her assignee instituted arbitration proceedings against a lender pursuant to the terms of a promissory note, the lender petitioned the superior court to enjoin arbitration on the ground that no arbitration agreement existed. The court denied the petition because it found there was a factual dispute as to whether the parties had agreed to arbitrate. The matter proceeded to arbitration, where the lender renewed its objection. Evidence and argument were presented on the issue and the panel ultimately concluded the note and arbitration agreement were valid and issued an award in favor of the borrower. The borrower petitioned the superior court to confirm the award. The lender petitioned the court to vacate it, again arguing no arbitration agreement existed. The court refused to consider the lender's argument, reasoning that the validity of the arbitration agreement had been examined and affirmed by the arbitrators. The court dismissed the lender's petition and confirmed the award.
This was error. An arbitration award cannot be confirmed over objection absent a judicial finding at some point in the proceedings that a valid arbitration agreement exists.
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