In a decision that is very skinny on the facts, a unanimous Nevada Supreme Court recently un-vacated a significant arbitration award in a dispute over dental franchises. In Half Dental Franchise, LLC v. Houchin, 2017 WL 3326425 (Nev. Aug. 3, 2017), the court found the arbitrators did not exceed their power in exercising authority over non-signatories.
The dispute began when Half Dental Franchise filed an arbitration demand against Precision Dental Professionals and Robert Houchin (among others). They asserted breaches of contract and tort claims (including tortious interference with contract and usurping corporate opportunities). A three-arbitrator panel found that both those respondents were proper parties, and granted Half Dental about $6.7M in damage. Houchin filed a motion to vacate the arbitration award The district court granted the motion, finding that the arbitrators exceeded their power in finding authority over Houchin, and vacated the award.
