Green v. Mt. Diablo Hospital District

Opinion

LOW, P. J.

A petition to compel arbitration is properly denied where there are sufficient grounds alleging illegality of the underlying agreement. The allegations, if proved, would render the entire contract void. The legality of the contract should first be judicially determined before any contractual disputes may be arbitrated. It is within the trial court’s discretion to decide whether the claims of third parties not bound by the arbitration agreement should be brought in one judicial forum. This does not circum vent the policy favoring arbitration, because should the court determine…