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Ericksen, Arbuthnot, McCarthy, Kearney & Walsh, Inc. v. 100 Oak Street

35 Cal. 3d 312, 673 P.2d 251 (1983)

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Ericksen, Arbuthnot, McCarthy, Kearney & Walsh, Inc. v. 100 Oak Street

California Supreme Court
35 Cal. 3d 312, 673 P.2d 251 (1983)

  • Written by Alexander Hager-DeMyer, JD

Facts

Ericksen, Arbuthnot, McCarthy, Kearney & Walsh, Inc. (Ericksen) (plaintiff) was a California law firm that leased the first floor of an office building from 100 Oak Street (Oak) (defendant), a limited partnership that owned the property. The lease agreement included a provision requiring arbitration for any dispute related to the lease, except for provisions relating to rent. Ericksen grew dissatisfied with the building and vacated the premises halfway through the lease term. Ericksen filed suit in California state court, alleging breaches of contract and fraud. Ericksen sought to rescind the agreement and collect damages. Oak filed a petition to stay the proceedings and compel arbitration of the dispute, citing the lease agreement’s arbitration provision. Ericksen admitted that it entered into an arbitration agreement but claimed that the agreement should be revoked because the law firm was falsely and fraudulently induced to enter into the lease. Without verifying the allegation, the trial court denied Oak’s petition to compel arbitration. Oak appealed to the California Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Grodin, J.)

Dissent (Mosk, J.)

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