FAA Requires Trial Court to Appoint Substitute Arbitrator, Calif. App. Court Rules

SAN FRANCISCO — A trial court was required to appoint a substitute arbitrator under Section 5 of the Federal Arbitration Act after National Arbitration Forum refused to conduct arbitration under its code of procedure, a California appellate court has ruled.

In a July 24 opinion, the California Court of Appeal, 1st District found that the NAF was not an “integral” part of the arbitration agreement; therefore, a substitute arbitrator may be appointed.

Amy Baillie and Kathrine Rosas sued Thomas Assenzio in the Alameda County Superior Court based on the allegedly illegal lending practices of a number of corporations under Assenzio’s …