Category: Arbitration: Class

Arbitration Gateway And Delegation Issues: In A 4-3 Decision, California Supreme Court Rules That Deciding Whether Arbitration Agreement Permits Classwide Arbitration Is The Arbitrator’s Decision To Make

Dissent Argues That Classwide Arbitrability Is A Gateway Question The Court Should Get To Decide.      The courts have treated gateway arbitrability issues concerning the existence of an arbitration agreement and the scope of the agreement as  “gateway” issues for the courts to decide, whereas so-called procedural issues are to be resolved by the arbitrator.  […]

Arbitration, Employment: Second Dist., Div. 7 Reverses Judgment Denying Petition To Compel Arbitration And First Dist., Div. 4, Affirms Order Denying Employer’s Petition To Compel Arbitration

     Notwithstanding the trend in SCOTUS to uphold arbitration agreements, including waiver of class arbitration, our next two unpublished cases show that the California courts look closely at arbitration agreements, sometimes enforcing and sometimes not enforcing arbitration agreements.  On the same day, one California Court of Appeal reversed an order denying an employer’s effort to […]

Arbitration, Scope, Enforceability, Construction: Employees Get To Litigate Class Action Claims, Because Arbitration Agreement Excluded Class Action Claims From Its Scope

Court Looks At Evolution Of Class Action Waiver Law In California For Help Construing Meaning Of The Contractual Language.      In 2011, AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011) held the Discover Bank rule, invalidating a class arbitration waiver, had been preempted by the Federal Arbitration Act.  After Concepcion, employers frequently insert class […]

Arbitration, Class, FAA Preemption: Professor Ronald Mann Provides Analysis Of SCOTUS Ruling In DirectTV v. Imburgia

His Opinion Analysis Is Titled, “Justices rebuke California courts (again) for refusal to enforce arbitration agreement” — And That About Says It All.      On December 14, 2015, the United States Supreme Court decided DirecTV v. Imburgia,  The SCOTUS syllabus states the holding:   “Because the California Court of Appeal’s interpretation is pre-empted by the Federal […]

Arbitration, Class, Severability, Delegation, Class Action: Court Of Appeal Holds Arbitration Clause Enforceable, Except For Severable Fees And Costs Provision In Consumer Arbitration

Fees And Costs Provision In Consumer Arbitration Was Unconscionable Here.      This case involves a common scenario in which a business sells a good or service that is financed, the business is unable to fully perform, and the lender seeks to enforce an arbitration provision when it gets sued.  Here, the Court of Appeal held […]

Arbitration, Class Actions, Waiver: DIRECTV v. Imburgia Arguments Heard By Supreme Court On October 6, 2015

ScotusBlog Analyzes Oral Argument Under Caption, “Justices have scorching criticism for California court’s refusal to enforce arbitration agreement, but debate their authority to correct it.”      Columbia Law Professor Ronald Mann has authored both an October 2, 2015 preview of arguments in DIRECTV v. Imburgia and an October 7, 2015 analysis of the oral arguments.  […]

Automobiles, Waiver, FAA, Class: Federal Arbitration Act Preempts Application Of Consumers Legal Remedies Act

Court Distinguishes Imburgia v. DIRECTV, Inc., Case Pending Before SCOTUS.        Automobile purchases and leases have generated quite a few disputes about the enforcement of arbitration clauses.  Exhibit 1:  The Sanchez case decided by the California Supreme Court on August 3, about which I posted on August 4, 2015.  We have a sidebar category for […]

Class Actions, Unconscionability, Automobiles: California Supreme Court Reverses Court of Appeal, Enforces Class Action Waiver, Holds Automobile Sales Contract Is Not Unconscionable

Application of Concepcion Is Decisive.      At last, the California Supreme Court has decided Sanchez v. Valencia Holding Company, LLC, S199119 (Cal. Sup. Ct. Aug. 3, 2015) (Liu, J., author).  The case has been pending since Defendant and Appellant Valencia filed its petition for review on January 4, 2012.  The majority opinion, authored by Justice […]

Choice of Law; Delegation: Delegation Clause And Agreement Arbitration Disabling Application Of California Law In Employment Dispute Are Found To Be Substantively Unconscionable

“Exotic” Choice Of Law Clause Is The Key To This Case.      Stained glass in Neiman Marcus store, San Francisco.  Carol M. Highsmith, photographer.  2012.  Library of Congress.      Neiman Marcus drafted an ingenious choice of law clause that the First District, Division Four, describes as “exotic” – perhaps a euphemism for “too clever by […]

Arbitration, Class Action, Delegation, Collateral Estoppel, Standard Of Review: Federal Order Vacating Arbitration Award Binds State Court

“Manifest Disregard Of The Law” Federal Standard For Vacating Award Worked To Employee’s Advantage Here.      Our next case involves arbitration issues addressed in three forums:  a Labor Management Committee, state courts, and federal district court.  Plaintiff/Petitioner Wawock petitioned for a writ of mandate, seeking an order directing the superior court to deny defendant CSI’s […]