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Arbitration And Its Collateral Estoppel Effect On Third Parties - Vandenberg V. Superior Court, Thurston K. Cromwell

Journal of Dispute Resolution

This Note examines why California's supreme court chose not to allow judicially confirmed arbitration awards to apply to third parties. The court based its decision on the contract model of arbitration and determined that an agreement to arbitrate was not necessarily an agreement binding third parties. However, this decision undermines the credibility of the arbitration process and fails to consider the negative impact relitigation of issues will have on the California courts.