Category: Arbitration: Employment

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, Scope, Nonsignatories, Agents: Broadly Worded Arbitration Clause Not Broad Enough To Include Labor Code Claims

But Court Of Appeal Does Reject Arguments That Nonsignatories Lacked Standing And That They Waived Right To Compel Arbitration – Before Addressing “Crucial Issue Of Scope      In Williams v. Digius, et al., D064183 (4/1 April 24, 2015) (McDonald, McConnell, Haller) (unpublished), the Court of Appeal agreed with appellants, who had not signed an arbitration […]

Arbitration: Deadlines, Waiver, Scope, Employment, Enforceability, FINRA, Arbitrability — An Assortment Of Recent (Unpublished) Arbitration Cases And Issues

  Deadlines:  Lombard Knight v. Rainstorm Pictures, Inc., B253246 (2/1 March 25, 2015).      In this case involving agreements to finance the production of motion pictures, Plaintiff sought to “confirm” a multi-million dollar arbitration award, while also asking to dismiss individuals, on the grounds that they had not been properly served, and jurisdiction over them […]

Arbitration, Employment, Enforceability, Unconscionability: Court of Appeal Rejects Employee’s Contentions She Never Entered Into Binding Arbitration Agreement

Also Rejected:  Contentions The Agreement Was Unconscionable.      The Court of Appeal affirmed the judgment against an employee, including rulings that her claims were subject to arbitration, in Serafin v. Balco Properties Ltd., LLC, Case No. A141358 (1/4 March 16, 2015) (Ruvolo, Reardon, Rivera).       COMMENT:  The Court’s analysis of appellant’s arguments gives a pretty […]

Arbitration, Nonsignatories, Employment: In A Case Of First Impression, Court Of Appeal Holds That Successor Company Can Enforce Arbitration Agreement

By Suing DirectTV For Unpaid Wages, Employee Acknowledged Existence Of An Employment Relationship With Entity That Survived Merger.      May a nonsignatory defendant enforce an arbitration agreement between a signatory plaintiff and a corporation that was acquired by the nonsignatory defendant, which assumed all rights and obligations of the acquired corporation?  “We have found no […]

Arbitration, Employment, Public Policy, Standard Of Review: Cal Supreme Court Rules Arbitrator May Have Erred About Employee’s Unwaivable Statutory Rights, But Valid Alternative Ground Existed For Dismissing Employee

California Supreme Court Leaves Employer’s “Honest Belief Defense” Unsettled.      This case fits under the rubric “no harm, no foul.”       Plaintiff Richey sued his employer AutoNation, Inc., for terminating his employment after he went out on sick leave, thereby violating his right to reinstatement under the California Family Rights Act (CFRA).  While on sick […]

Employment: After Rehearing, Court Of Appeal Again Reverses Trial Court’s Order Denying Employer’s Motion To Compel Arbitration

Same As Before – Only This Time A Third Judge Signs On To The Opinion      I blogged about this very same case in a post on August 27, 2014.  So I was puzzled at first as to why another published opinion was issued following rehearing on January 20, 2015.  Cruise v. Kroger Co., B248430 […]

Arbitration, Class, Gateway Issues, Employment: A Rift In Court Of Appeals Decisions As To Whether Judge Or Arbitrator Decides If Agreement Allows Class-Wide Arbitration

Fourth District Says When Agreement Is Silent, Judge Decides; Second District Says Arbitrator Decides – So The California Supreme Court Will Have To Decide.      GATEWAY.  Carol M. Highsmith, photographer.  2013.  Library of Congress.      When the arbitration agreement is silent, who gets to decide whether the arbitration agreement allows for class arbitration?  Judge or […]

Arbitration, Severability, PAGA: Second District, Div. 4 Affirms Order Denying Motion To Compel Arbitration Because PAGA Claims Could Not Be Arbitrated, And PAGA Claims Were Not Severable

Court of Appeal Recognizes It Is Bound By Iskanian, Until SCOTUS Resolves Validity Of PAGA Waivers.          Montano v. The Wet Seal Retail, Inc., B244107 (2/4 Jan. 7, 2015) (Epstein, Willhite, Manella) (published) is the latest case to follow the holding in Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal.4th 348 (2014), that waiver […]

Arbitration, Burden Of Proof, Enforceability, Employment, CCP 1281.2: Petition To Compel Arbitration Fails Because Employer Is Unable To Authenticate Electronic Signature.

Burden Of Proof Shifted To Employer Because Employee Didn’t Remember Signing Arbitration Agreement.      Ruiz v. Moss Bros. Auto Group, Inc., E057529 (4/2 Dec. 23, 2014) (King, Hollenhorst, Codrington) is one more reminder of the pitfalls when dealing with electronic signatures.  After employer Moss Bros. unsuccessfully petitioned for an order compelling arbitration of employee Ruiz’s […]