9th Circuit Calls for Vacatur of $2.4 Million Arbitration Award

SAN FRANCISCO - The 9th Circuit U.S. Court of Appeals has reversed and remanded a district court's confirmation of a $2.4 million arbitration award, ruling that the defendant's counterclaims should have been arbitrated where the "defendant" is located. Polimaster Ltd. v. RAE Systems Inc., Nos. 08-15708 and 09-15369 (9th Cir.).

On Sept. 28, a majority of the appellate panel, led by Senior Circuit Judge J. Clifford Wallace, found that the procedures used in the arbitration of the "counterclaims" were not in accordance with the parties' arbitration agreement and therefore the award should have been vacated.

In 2003, Polimaster Ltd., which …