Arbitrator’s Authority Does Not Extend To Post-Arbitration Conduct

In Kelly v. Charles Schwab & Co., Inc., the California Court of Appeal affirmed an arbitration award rendered against a former Schwab investment advisor, with respect to the claims he brought against the brokerage. However, according to the court, the arbitrator went too far when he included in his award a $300 daily sanction intended to encourage the advisor to remove from YouTube videos that he had obtained from the brokerage in discovery. As the court noted, “the Legislature did not give arbitrators the authority to provide for enforcement of judgments.”

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