Month: May 2018

Arbitration: Agents: 2/2 DCA Reverses As A Matter Of Law Denial Of Motion To Compel Arbitration Given That Defendant Agent Was Not An Independent Third Party

May 30, 2018 · Arbitration: Agents

Rather, Agents Of Statutory Defendant Are Entitled To Benefit Of An Arbitration Agreement.           In Hernandez v. AutoZone, Inc., Case No. B280206 (2d Dist., Div. 2) (May 30, 2018) (unpublished; Justice Victoria Chavez, concurred in by Justice Judith Ashmann-Gerst, A.P.J., and Justice Brian M. Hoffstadt), ex-employer AutoZone moved to compel arbitration against a former employee […]

Arbitration: Delegation/Unconscionability: Trial Court Is The One Deciding Any Contractually Applicable Defenses, Including Whether Delegation Clause Is Unlawful And Void

Arbitration Clause Was Infirm Because It Was A “Side Agreement” Neither Filed With Nor Approved By California’s Insurance Commissioner.             Nielsen Contracting, Inc. v. Applied Underwriters, Inc., Case No. D072393 (4th Dist., Div. 1 May 3, 2018, modified on May 23, 2018) (published) (Haller, J., author, concurred in by McConnell, P.J. and Huffman, J.) decided […]

Arbitration: Class Action, Waiver, FAA, Employment: Employment Contract Providing For Individualized Arbitration Provisions Not Invalidated By The Federal Arbitration Act’s Savings Clause, The Fair Labor Standards Act, Or National Labor Relations Act

FAA Collective Actions And Related State Law Class Actions Governed By Individualized Arbitration Proceedings Under Employment Contract.           On May 21, 2018, the United State Supreme Court issued its decision in Epic Systems Corp. v. Lewis, 584 U.S. __, No. 16-285. SCOTUS decided that the FAA instructed federal courts to enforce individualized arbitration proceedings under an […]

Arbitration: Nonsignatories: 2/4 DCA Reverses Arbitration Award Against Nonsignatory Alter Ego Where Arbitrator Included Nonsignatory In Arbitration

Appellate Court Found That Trial Judge Must Make Determination To Add Alter Ego Nonsignatory, With JAMS Rule Not Dictating A Different Result.             Benaroya v. Willis, Case No. B281761 (2d Dist., Div. 4 May 17, 2018) (published) (Willhite, J., concurred in by Epstein, P.J. and Collins, J.) (yes, the matter did involve action star Bruce […]

Fees, Section 1286.2 Vacatur: Recent 2/1 DCA Unpublished Opinion Is A Stark Reminder To Raise Fees And Costs Issue To An Arbitrator Before A Final Award Is Issued

Otherwise, Fees/Costs Recovery Could Be Forfeited; Best Is To Ask For An Interim Award On Merits And Reserve Other Issues For Later Interim Award.             The next case really is a stark reminder to litigators to make sure an arbitrator reserves fees and costs issues for decision in a subsequent interim award after an interim […]

Unconscionability: Second District, Division 4 California Court Of Appeal Agrees In Unpublished Opinion That Former Employer’s Arbitration Provision Was Unconscionable And Unenforceable In Subsequent Wage/Hour Class Action

Failure To Highlight Provision In Multi-Page Employment Handbook And To Notify Employees That Signing The Handbook With The Provision Could Forfeit Their Ability To Participate In The Existing Class Action Cemented The Unconscionability Conclusion.           In law school, many of us got introduced to the notion of contractual unconscionability through the interesting decision in Campbell […]

Arbitration, Class Action Waiver: SCOTUS Grants Certiorari To Review Whether Generalized Language In Arbitration Agreements Forecloses A State Law Interpretation Authorizing Class Arbitration Under The FAA

Issue Deals With Whether Generalized Language Was Akin To Silence Under Stolt-Nielsen.             In Stolt-Nielsen v. AnimalFeeds International Corp., 55 U.S. 662, 684, 687 (2010), the U.S. Supreme Court (SCOTUS) held that the differences between bilateral and class-action arbitration are too great to presume the parties’ mere silence on the issue of class-action arbitration constitutes […]

Arbitration/Fees/Enforceability: Party Who Has Engaged In Arbitration In Good Faith And Becomes Unable To Pay Arbitrator’s Fees May Be Entitled To Day In Court

May 1, 2018 · Arbitration: Fees

The Options:  The Other Side Can Pay Arbitration Fees, Or The Matter Can Move To Court.         "In its majestic equality," wrote Anatole France, "the law forbids rich and poor alike to sleep under bridges, beg in the streets and steal loaves of bread."  So does this principle of equality mean that the law forbids a […]