Nishimura v. Gentry Homes, Ltd.

Opinion of the Court by

McKENNA, J.

I. Introduction

This appeal raises an issue of first impression in Hawai'i: what standard applies in reviewing the enforceability of an arbitrator-selection provision? We adopt the “fundamental fairness” standard set forth by the United States Court of Appeals for the Sixth Circuit in McMullen v. Meijer, Inc., 355 F.3d 485 (6th Cir.2004), and we hold that the arbitrator-selection provision at issue in this appeal was fundamentally unfair, because it gave the defendant’s agent “sole discretion” to select an arbitration service to resolve a dispute between the…