Beneficiaries cannot be bound by an arbitration clause in testamentary trust documents. In Diaz v. Bukey, the California Court of Appeal affirmed a probate court ruling that denied a trustee’s motion to require a beneficiary to arbitrate a petition to remove the trustee. The trustee’s motion was premised
Many contracts contain a provision requiring arbitration of disputes arising from the contract. Arbitration is resolution of a dispute by one or more private decision makers (arbitrators). Decision makers are frequently, but not always, former judges. With some limited exceptions, the arbitrator’s compensation is divided equally between the parties. When a party to an arbitration… read more
Small businesses should not only think carefully about the appropriate form for the operation of the business, but also for the possible end of the business. When a corporation ceases doing business, it may be dissolved. However, not all states treat a dissolved corporation the same a California does. This distinction was recently illustrated in… read more
A mandatory binding arbitration clause is a common component of California employment agreements. While California courts will enforce such clauses, they have been unwilling to grant complete deference to the arbitrator. A recent California Supreme Court decision, Dental Supplies, Inc. v. Superior Court, further develops the law on this topic. Pearson Dental arose from an… read more
Most estate planning trusts contain a provision providing that if a beneficiary contests the trust, that beneficiary is deemed to have died before the trustor. Under such circumstances, the beneficiary loses any right to receive any benefits from the trust. This type of provision is known as a “no contest” clause and will generally be… read more
Mediation can save you time and money and can bring about a quick solution to a legal problem.