LOS ANGELES (Legal Newsline) - A consumer law firm is suing the American Arbitration Association, arguing its removal of the arbitrator hearing a dispute was unfair.
Consumer Action Law Group filed suit Feb. 17 in Los Angeles Superior Court over proceedings brought against it by a former client, Gerolyn Howard. The proceedings before the AAA began in November 2017 and lasted four years.
For most of that time, Anita Rae Shapiro was the arbitrator in the case. In November 2021, Howard objected to her hearing the case with one day left in a three-day trial and after Howard had rested her case, the suit says.
The weekend before the final day of trial, Howard sent AAA a letter concerning Shapiro's service as arbitrator.
"The specific objections were that (1) a dog was barking while she was testifying and (2) that Howard felt rushed," the suit says.
Shapiro refused to step down but ordered a postponement of the final day of trial because Howard wished to find new counsel to represent her. Though Shapiro said she would stay on the case, on Nov. 8, 2021, the AAA sent Howard and CALG letters seeking comments on Howard's request to remove Shapiro.
"Simply said, under the Rules of Agency..., Shapiro's order superseded that of Marina Cortes," the suit says. "The (AAA) does not act as arbitrator. Its function is to administer arbitrations in accordance with the agreement of the parties and to maintain panels from which arbitrators may be chosen by the parties. Once chosen, the arbitrator decides the issues and his or her award is final and binding."
After 10 days, AAA removed Shapiro in a letter that was "devoid of reasoning, explanation or Rule violation," the suit says. In stepped George Kovacevic during a six-month delay, and he ruled for Howard and against CALG.
CALG seeks at least $80,000 and charges the AAA with breach of contract, defamation and gross negligence, among other claims.
AAA removed the case to Los Angeles federal court on March 22.