Greenspan v. Manhattan Loft
Andrew Meieran, or an entity he controlled, sold a building in downtown Los Angeles to Manhattan Loft, LLC. Under the purchase contract, certain rights were to flow to the Andrew Meieran Family Trust (the Trust). The purchase contract had an arbitration clause. A dispute arose and the Trust, through its trustee, Arnold Greenspan, instituted an arbitration proceeding against Manhattan Loft[1] as a third-party beneficiary under the purchase contract. The arbitrator entered an award in favor of the Trust in a total amount exceeding $14 million. On cross-petitions to confirm and vacate the award, the trial court reduced the damages substantially, excising over $12 million which had been awarded for lost profits and lost business value, on the basis that the arbitrator had exceeded his jurisdiction by awarding those damages to the Trust. As corrected, the arbitrator confirmed the award. Both parties appeal; the Trust argues that the trial court erred in reducing the arbitration award; Manhattan Loft argues that the trial court erred in refusing to vacate the award in its entirety. Court conclude that the arbitrator did not exceed his jurisdiction, and therefore reverse with directions requiring the trial court to confirm the arbitrators award.
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