Calif. Arbitration Ruling May Curb 3rd-Party Discovery
Law360 (July 29, 2020, 12:45 PM EDT) — Obtaining prehearing discovery from third parties in California arbitration proceedings had historically been plagued by uncertainty and disagreement, which undermined arbitration goals of increased efficiency and the right to a full and fair hearing.
That is because California state courts provided zero guidance on the scope of prehearing, third-party discovery in arbitration proceedings. This lack of clarity required parties to engage in unnecessary and time-consuming disagreements/hearings, which further undermined the very efficiencies parties expected when opting for arbitration.
The scope and limitations of third-party discovery in arbitration proceedings is clearer at the federal level. Indeed, a majority of federal circuit courts…