Hopper v. American Arbitration Association, Inc., 2017 WL
6569571, No. 16-55573 (9th Cir. Dec. 7, 2017)
The district court dismissed Hopper’s false advertising
claim against AAA based on arbitral immunity, and the court of appeals
reversed. “Arbitral immunity extends to
claims that arise out of a decisional act and exists to ‘protect the
decision-maker from undue influence and protect the decision-making process
from reprisals by dissatisfied litigants.’” But the false advertising claim was
“predicated on AAA’s descriptions of its arbitrators disseminated through its
website and direct mail. Commercial advertisement, designed to sway individuals
to choose AAA over its competitors … is distinct and distant from the
decisional act of an arbitrator.”
Allowing the false advertising claim to proceed wouldn’t lead to undue
influence over the arbitration process or expose arbitral decisions to
reprisals.
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