Category: Arbitration: Enforceability

Construction And Enforceability Of Arbitration Agrement: Broad Arbitration Agreement May Be Applied Retroactively

Employee's Claims Arose Before He Signed Arbitration Agreement.         Is an arbitration agreement enforceable when the employee's claim arises before he signs the arbitration agreement? Yes, says the Court of Appeal in Franco v. Greystone Ridge Condominium, et al., G056559 (4/3  8/27/19) (Fybel, Aronson, Thompson). In this case, "[t]he parties' arbitration agreement is […]

Arbitration, Employment: Fourth District, Div. 3 Holds Employee’s Unfair Competition Law Claim Seeking Private Injunctive Relief Is Arbitrable

Court Of Appeal Distinguishes The Broughton-Cruz Rule.         Clifford v. Quest Software, Inc., G055858 (4/3  8/14/19) (Aronson, O'Leary, Goethals) addresses, "whether an employee's claim against his employer for unfair competition under Business and Professions Code section 17200 (the UCL) is arbitrable." Assuming the arbitration clause is valid and enforceable, the Court holds that […]

Arbitration, Agency, Enforceability, Section 1281.2: Nursing Facility Is Unable To Enforce Arbitration Provision Because Children’s Claims Were Not Subject To Arbitration

And Prospect Of Inconsistent Results Meant Father's Claims Could Not Be Arbitrated While Children's Claims Were Litigated.         Nursing homes continue to be a fertile source of cases concerning the enforcement of arbitration clauses. This is not surprising, because a patient, especially an elderly patient, who enters a nursing facility may be infirm or incompetent; […]

News: Two Employment Cases Involving Enforceability Of Arbitration Provisions Reach Different Results

Quinn Emanuel And Spin-off LawFirm Selendy and Gay.     Jack Newsham authored an April 24, 2019 article, appearing in New York Law Journal, and entitled, "Judge Dismisses Suit Against Quinn Emanuel by Partners of Spinoff, Sends to Arbitration." Newsham begins by quoting the judge, who wrote, "It is for the arbitrator in the first […]

Arbitration, Employment, Standard Of Review: Employee Who Explicitly Rejects Arbitration Agreement Is Bound By It By Continuing To Work

Justice Segal Dissents.     An employee can impliedly accept an arbitration agreement by continuing to work for his or her employer. But what happens when the employee explicitly rejects the arbitration agreement yet continues to work, after the employer has said that continuing to work will bind the employee to arbitration? The trial court […]

Arbitration, Construction Of Agreement, Employment, Enforceability: Court of Appeal Remands Case To Determine If Plaintiff Was Represented By Counsel When She Signed Arbitration Agreement

Language Of Arbitration Agreement Was Sufficient To Require Arbitration, But . . . .     In Salgado v. Carrows Restaurants, Inc., B285756 (2/6  2/26/19) (Gilbert, Yegan, Tangeman), the trial court denied employer's motion to compel arbitration, on the grounds that "Defendants have failed to demonstrate that the arbitration agreement applies to a suit that […]

Arbitration: Three Unpublished Employment Opinions Side With Employers’ Positions

Issues Covered Include Class Action, Unconscionability, Powers Of Arbitrator, Enforcement, Non-Signatories, PAGA, Severability, Costs. Martinez v. Ready Pac Produce, Inc., B279225 (2/3  11/20/18) (Lavin, Egerton, Dhanidina) (Unpublished): Waiver Of Class Action Meant Employee Could Not Participate In Pending Class Action.     The Court of Appeal reverses order denying employer Read Pac's motion to compel […]

Arbitration, Enforceability/Construction Of Agreement: Parties Agreeing To Arbitrate Under Rules Set By Third Party Is Bound By Rule Change That Product Liability Claims Will Not Be Heard

Defendant Seeking To Compel Arbitration Had Argued That Claim To Be Submitted To Arbitration Accrued Before Rule Changed.         This case presents a somewhat unusual situation, in that the Court of Appeal had to construe an arbitration agreement that was not directly between the parties.  Instead, the parties independently agreed to participate in an […]

Arbitration, Enforceability, Consumers, Existence Of Agreement, Nonsignatories: Assignee Of Credit Card Account Agreement Could Enforce Arbitraiton Provision Against Credit Card Holder

Existence Of Agreement Was Established With Affidavit Of A Person With First-Hand Knowledge Of Procedures. Early Example Of Credit Card.         Plaintiff Yenko filed a putative class action lawsuit against Crown Asset Management, LLC, a debt buyer that purchased plaintiff's alleged charged-off credit card debt.  The trial court held that Crown, as the assignee of […]

Enforceability Of Arbitration Clauses – A Spate Of Recent Cases

March 23, 2017 · Arbitration: Enforceability

As Arbitration Clauses Proliferate, So Too Do Motions Concerning Enforcement Of Those Clauses.     I have not done a statistical study, but it is certainly my perception that in recent years there is more and more law and motion practice concerning the enforceability of arbitration clauses in California courts. First, the clauses have proliferated in contracts. […]