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California law is instructive. In order to have an issue-preclusive effect in a later judicial action in California, an arbitration must have been conducted with certain procedural safeguards. As the California Supreme Court recently explained: Whether collateral estoppel is fair and consistent with public policy in a particular case depends in part upon the character of the forum that first decided the issue later sought to be foreclosed. In this regard, courts consider the judicial nature of the prior forum, i.e., its legal formality, the scope of its jurisdiction, and its procedural safeguards, particularly including the opportunity for judicial review of adverse rulings. Vandenberg, 982 P.2d at 237. The California Courts of Appeal have similarly noted that it is 'appropriate to give collateral estoppel effect to findings made during an arbitration, so long as the arbitration had the elements of an adjudicatory procedure.' Kelly v. Vons Cos., 67 Cal. App. 4th 1329, 79 Cal. Rptr. 2d 763, 767 (Ct. App. 1998) (emphasis added); see also Camargo v. Cal. Portland Cement Co., 86 Cal. App. 4th 995, 103 Cal. Rptr. 2d 841, 853 (Ct. App. 2001) ('Collateral estoppel is appropriately applied to arbitration as a matter of policy ...
