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Siegel v. Prudential Insurance Co. of America

79 Cal. Rptr. 2d 726 (1998)

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Siegel v. Prudential Insurance Co. of America

California Court of Appeal
79 Cal. Rptr. 2d 726 (1998)

EP

Facts

Howard Siegel (plaintiff) entered an employment contract with James Dinges and Prudential Insurance Company of America (employers) (defendants). The contract included a provision agreeing that employment disputes were to be arbitrated before the National Association of Securities Dealers, Inc. (NASD). A dispute arose, and Siegel brought suit against the employers for wrongful termination, seeking compensatory and punitive damages. The employers petitioned the trial court to compel arbitration and stay litigation, which was granted. At arbitration, an award was issued in favor of Siegel for compensatory and punitive damages. Siegel sought to affirm the award in trial court. The employers moved to vacate the award, arguing that by awarding punitive damages absent sufficient evidence, the NASD acted in “manifest disregard of [the] law.” The employers claimed that although California Code of Civil Procedure § 1286.2 prohibited judicial review of arbitration awards, the United States Arbitration Act (USAA), 9 U.S.C. §§ 10 and 12, preempted state law and allowed the trial court to vacate the award. The trial court upheld the arbitration award, and the employers appealed.

Rule of Law

Issue

Holding and Reasoning (Turner, J.)

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