The Benefits of Judicial Reference to Resolve Disputes

Under California law, parties are permitted to resolve disputes through a process called judicial reference. Judicial reference allows a private judge to determine any or all of the issues in a dispute with the full capacity of a judge in a trial, including the authority to issue a binding court judgment. Parties may submit to judicial reference in the same way they consent to a jury trial or arbitration.

Judicial reference proceedings offer several advantages over arbitration, and yet remains an under-employed method of dispute resolution. Both judicial reference and arbitration proceedings provide parties with privacy and efficiency in contrast to the public exposure and lengthy delay potentially associated with a trial. In addition, both methods entitle the parties to choose a decision maker as opposed to a courtroom trial, where a judge must be appointed.

The primary difference between judicial reference and arbitration is that the former is governed by legal precedent and is subject to full appellate review as if it was issued following a regular courtroom trial. In contrast, parties in an arbitration are not required to follow federal or state law. The California Supreme Court has held that proceedings not governed by applicable law generally do not qualify for judicial review or appeal. After an arbitration decision has been made, the parties must accept the decision even when it is contrary to evidence. The absence of legal rules in guiding an arbitration may lead to subjective and unsatisfactory results.

Judicial reference presents a viable alternative for dispute resolution. Parties can avoid the vagaries of a jury trial while preserving the ability to appeal unfavorable outcomes. When drafting a contractual provision for dispute resolution, parties should consult California case law to guide them in drafting an enforceable judicial reference clause.

If you are considering either judicial reference or arbitration, it is advisable to consult with a lawyer who has experience in all forms of alternative dispute resolution. Shane Coons can guide you in the process of judicial reference. For more information, call Shane Coons at 949-333-0900 or visit his website at www.ShaneCoonsLaw.com.

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The Benefits of Judicial Reference to Resolve Disputes

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