Category: Arbitration: Enforceability

Arbitration/Employment/Waiver/Burden of Proof/Construction: Because Collective Bargaining Agreement Did Not “Clearly And Unmistakably” Waive Plaintiffs’ Right to Bring Statutory Claims In Judicial Forum, Employees Did Not Waive Their Rig

Denial of Motion to Compel Arbitration Hinges on Burden of Proof and Existence of Statutory Rights      One of the “hot topics” we have posted about is whether the right to sue in court can be waived when the rights at issue are statutory rights.  See our June 5, 2012 post on Iskanian v. CLS […]

Arbitration/Enforceability/Unconscionability: Fourth District Division 1 Agrees With Trial Court That Automobile Dealership’s Arbitration Provision Is Unconscionable

  However, California Supreme Court Will Likely Make Ultimate Determination of Issues in Pending Sanchez v. Valencia Holding Co. Case      Arbitration clauses in contracts for automobile purchases and leases offer fertile ground for litigation.  See our April 12, 2012 post about Kolev v. Euromotors West/The Auto Gallery, 586 F.3d 1024 (9th Cir. 2011) (opinion […]

Arbitration/Enforceability/Homeowners: Privity, Shmivity, Says The California Supreme Court – A Provision To Arbitrate Construction Disputes In Recorded CC&Rs Will Be Honored If Not Unreasonable

  Majority Opinion Draws Two Concurrences and One Dissent      Arbitration is a matter of consent, right? Because there can be no meaningful consent between a developer that drafts covenants, conditions, and restrictions containing a provision requiring arbitration of construction disputes, and a homeowner’s association (HOA) that doesn’t yet exist, how can the HOA in […]

Arbitration/Employment/Enforceability/Standard of Review/Public Policy: Ninth Circuit Refuses to Vacate Arbitration Award Prohibiting Retired Football Player from Pursuing Workers’ Comp Claims Under California Law

  Football Player Bruce Matthews Did Not Allege Sufficient Contacts With California To Show Workers’ Comp Claim Came Within Scope of California’s Workers’ Comp Regime      Bruce Matthews, a former American college and professional football player, was an offensive lineman in the NFL for 19 seasons.  He played college football for  USC, was an All-American, […]

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 […]

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 […]

Arbitration/Enforceability: Cal Supreme Court Reverses Judgment To Compel Arbitration To Enforce Collective Bargaining Provisions, But Remands For Further Findings

Supreme Court Faced “Tension Between Two Principles”      In United Teachers of Los Angeles v. Los Angeles Unified School District, S177403 (Cal. Sup. Ct. June 28, 2012) (Liu, J., author), the Supreme Court found itself “required to resolve a tension between two principles:  (1) collective bargaining provisions in conflict with the Education Code are unenforceable, […]

Arbitration/Enforceability/Employment: Requiring Employee To Agree To Arbitration Provision Is Not By Itself Wrongfully Coercive, Despite Loss Of Right To A Jury

  Labor Code Section 206.5 Prohibits Employer From Obtaining Release of Claim For Wages Under Specified Circumstances, But Does Not Preclude Employee From Waiving Right to Jury By Agreeing To Arbitrate      The scenario is familiar: Employee (Pulli) sues employer (Pony International, LLC), for wrongful termination and other claims. Because employee signed an arbitration provision, […]

Arbitration/Nonsignatories/Enforcement: Second District, Division 7 Affirms Decision That Plaintiff Was Not Bound By Arbitration Provision In “Close Case”

  Outcome Depended On Capacity In Which Signatory Signed      The trial court determined that Plaintiff Allen Othman was not a party to a contract containing an arbitration provision in an agreement, and therefore was not bound to arbitrate his claims against Zions First National Bank. Mr. Othman had tried to purchase a property through […]

Arbitration/Enforceability/Homeowners: CC&R Arbitration Provision Does Not Constitute Agreement To Arbitrate Between HOA and Developer

  But Arbitration Provision Between Developer and Direct, Original Purchasers, Suffices To Compel Arbitration of Those Purchasers’ Claims      Covenants, conditions and restrictions (CC&Rs) containing an arbitration provision often raise gnarly questions about enforceability. Is the provision enforceable, and if so, what group will be bound to arbitrate? Those issues were presented in the next […]