Month: July 2012

Arbitration/Employment/Unconscionability: Second District, Division 5 Affirms Denial of Petition to Arbitrate Wrongful Termination Employment Dispute

  Majority Opinion Identified Many State Law Contractual Problems With Arbitration Provision      Plaintiff Sparks sued for wrongful termination, and employer Vista Del Mar Child and Family Services petitioned to arbitrate the dispute.  The trial court denied the petition, and the employer appealed.  Sparks v. Vista Del Mar Child and Family Services, Case No. B234988 […]

News: FINRA Reinstates Arbitrators; Tips for Making Mediation Work; Homeless Mediation; Sex Abuse Mediation

July 29, 2012 · Uncategorized

Arbitrators Axed By FINRA After Deciding Against Merrill Lynch Are Reinstated       Suzanne Barlyn reports July 25, 2012 (Reuters) that the Financial Industry Regulatory Authority (FINRA) reinstated three securities arbitrators axed after an arbitration panel awarded $520,000 against Merrill Lynch.  Because FINRA routinely cycles arbitrators through its roster, crossing an arbitrator off its roster is […]

Arbitration/Severability: First District, Division 1 Severs Part of Arbitration Provision Providing “Less-Than-Neutral Arbitration Forum”

July 27, 2012 · Arbitration: Severability

In Which the Dream of A Bed and Breakfast Becomes A Dog’s Breakfast     “A partnership to run a bed and breakfast in Nicaragua soured.”  Not an auspicious beginning.  Plaintiff Lawler sued his partners, the Caseys, and their former corporation (collectively Casey) in California for fraud and related causes of action.  Casey moved to compel […]

Arbitration/Disclosures/Fees: Second District, Division 8 Affirms Significant Fee Award and Rejects Argument Arbitrator Failed to Make Required Disclosures

Profession Relationships Were Too Attenuated To Justify Disqualification      Our next case is a lawsuit between a law firm and a lawyer/client over a significant amount of attorney’s fees – confirmation of the mission statement in our other blog, California Attorney’s Fees (brought to you by Mike Hensley and Marc Alexander), that attorney’s fees are […]

In the News: San Bernardino Skips Mediation, Venture Capital Firm Kleiner Perkins Is Denied Request to Arbitrate, and California State Attorney General Gets To Mediate With Madoff Bankruptcy Trustee

July 21, 2012 · News

San Bernardino:  Do Not Pass Mediation, Go Straight to Bankruptcy      The Associated Press reported on July 18, 2012, that the San Bernardino City Council voted 5-2 to declare a fiscal emergency, thereby allowing it to skip the mediation step now required by California law, and head straight to bankruptcy.      How quaint and optimistic […]

Arbitration/Employment/Class Actions/Enforceability: First District, Division 1 Affirms Order Compelling Employee To Individual Arbitration

Viability of Gentry v. Superior Court is Sidestepped By Court of Appeal      Plaintiff/employee Lorena Nelsen filed a putative class action lawsuit against her former employer LPI for multiple Labor Code violations.  Because Nelsen signed an arbitration agreement when she was hired, the employer, LPI moved, successfully, to compel arbitration with Nelsen all alone.  Nelsen […]

In the News: More About Mediation and Municipal Bankruptcies

July 14, 2012 · News

More Mediation for Stockton, and Possibly Mediation for San Bernardino      No sooner did Stockton end mediation and file for bankruptcy, than Judge Christopher Klein, the bankruptcy judge overseeing Stockton’s bankruptcy ordered the city and its creditors to mediate with bankruptcy Judge Elizabeth L. Perris next month.  So reported Steven Church at bloomberg.net on July […]

Appealability: Court Of Appeal Dismisses Appeal From Order Staying Action And Compelling Arbitration

Affirm? Reverse? No, Dismiss, Because the Order is Unappealable      Plaintiff Brian Zulli “purports to appeal from an order staying an action and compelling arbitration . . . “  Purports?  Yes, “purports”, because the order is not appealable.  Zulli v. Toll Brothers, Inc., Case No. B231622 (2nd Dist. Div. 6 July 10, 2012) (Perren, J., […]

Arbitration/Federal Arbitration Act: Ninth Circuit Affirms District Court’s Decision Affirming Denial of Motion to Compel Arbitration Where Conflict Existed Between Dischargeability Purpose of Bankruptcy Code and Arbitration

How to Reconcile the Federal Arbitration Act With the Bankruptcy Code?      The threshold issue that the Ninth Circuit had to resolve In the Matter of:  Jose Eber, Case Nos. 10-56772 and 11-55341 (9th Cir. July 9, 2012) (for publication) was “how to reconcile the FAA with the Bankruptcy Code, and, more specifically, a bankruptcy […]

Mediation/Confidentiality/In the News: Judge in Stockton Bankruptcy Limits Release of Mediation Information to Public

When Mediation Involves The Public’s Interest, How Confidential Is The Mediation Under Federal Law?      On July 6, 2012, Steven Church reported in Bloomerg, “[t]he judge overseeing Stockton, California’s bankruptcy limited the amount of information the city and its creditors can make public about a months-long mediation process that failed.”  Mediation is required under California […]