Gueyffier v. Ann Summers, Ltd.

Opinion

WERDEGAR, J.

Does an arbitrator exceed his powers when he applies equitable defenses to excuse a party from performing a material condition of an agreement that provides the arbitrator may not modify or change any of the agreement’s material provisions? We hold he does not.

Celine Gueyffier and Ann Summers, Ltd. . (Ann Summers), a British retailer, had a franchise agreement under which Gueyffier was to open an Ann Summers store in Los Angeles. The attempted store opening was a failure, leading to claims by each party that the other had breached their agreement. As the contract required,…