§ 90-466. Appeal to arbitration.

Not later than 30 calendar days following the date of mailing to the franchisee of the resolution of termination by the board of directors, the franchisee shall be authorized to appeal to arbitration the determination to terminate the franchise. The appeal shall be taken by filing a written notice thereof with the clerk of the board of directors. The notice of appeal shall state the specific reasons for appeal and shall be accompanied by a fee equal to the estimate by the clerk of the cost of preparing the transcript and record of the hearing. In the event the franchisee fails to file the notice of appeal with accompanying fee within 30 calendar days following the date on which a copy of the resolution of termination was mailed to the franchisee, the termination of the franchise shall become final, binding, conclusive and not subject to review or reversal by any authority. Judicial enforcement of the decision may be sought.

Except as otherwise provided herein, the arbitration pane [panel] shall be selected, the hearing scheduled within the time prescribed, notice given, the hearing conducted, decision made and costs divided in the manner prescribed by sections 90-469 through 90-474, inclusive, below.

The question which may be submitted to the arbitration panel and jurisdiction of the panel shall be limited to a decision as to whether the evidence received during the hearing preceding the determination by the board of directors established a basis for the termination of the franchise, and interpretation of the provisions of the franchise documents solely in relation to the question of whether there was a basis for termination. Under no circumstances shall the arbitration panel have authority or be vested with jurisdiction to review, reverse or otherwise nullify the exercise of discretion by the board of directors in terminating the franchise, if the panel determines that there are grounds for termination.

The hearing by the arbitration panel shall not be trial de novo, no new evidence shall be introduced, received, or considered, and the sole function of the panel shall be to review the record of the hearing preceding the decision by the board of directors to decide whether there was substantial evidence in the record to support the findings and to interpret the franchise documents in relation to the decision by the board of directors. The board's determination to terminate shall be sustained by the arbitration panel if it finds that there is substantial evidence in the record to sustain the determination, and that the conclusions are consistent with the provisions of the franchise documents. In determining whether there is substantial evidence in the record to support the findings, the panel shall conduct an independent review of the evidence in the record and determine the weight of the evidence contained in the record. The panel shall not substitute its discretion for that of the board with respect to the determination to terminate. If the panel decides that the determination by the board to terminate violates the provisions of the franchise documents it shall remand the matter to the board for further determination, reserving jurisdiction to review the determination. However, such remand shall not include a duty to receive further evidence, unless such evidence was initially offered and excluded during the hearing preceding the board's decision. Objections by the franchisee which were not presented during the hearing preceding the board's decision shall be deemed to have been waived.

The decision by the board of directors as affirmed by an arbitration award, may be judicially enforced, shall be final, binding and conclusive upon the parties, and shall not be subject to judicial review or vacation except on grounds set forth in Code of Civil Procedure § 1286.2 to the extent such grounds are consistent with the express terms of this article.

(Ord. No. 97-12, § 2(5.50.824), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)