After successfully compelling case to arbitration, real estate company says arbitration was unfair

Posted on: March 30th, 2017 by Steve Larson

A few months ago, real estate company Redfin Corp. won a battle to get a proposed class action transferred to arbitration. The proposed class alleged that the real estate company’s agents were treated like employees, not independent contractors. After the arbitrator ruled against Redfin, the real estate service asked a California federal judge to overturn the arbitrator’s ruling, saying the proceedings had been biased.

After the case was put into arbitration, and the parties could not agree on an arbitrator, the federal judge that transferred the case ordered that John True, the retired judge, would be assigned to handle the arbitration. Mr. True disclosed that he was personally acquainted with Redfin real estate agent Scott Galen’s attorneys at Goldstein Borgen Dardarian & Ho, but Redfin contends that True should have recused himself from the case.

Redfind contended that True had previously represented plaintiffs and had taken public stances against the so-called gig economy, in which workers are classified as independent contractors and don’t receive benefits or job security. Redfin said Mr. True was biased, and it showed, because he found that the case could proceed as a class action in arbitration.

Redfin asked the California federal court to vacate the arbitration award in favor of class arbitration and to recuse the arbitrator and replace him with a judge of Redfin’s choosing.