Category: Arbitration: Illegality

Employment: Employee’s Release Of Claim After It Accrued Is Not Illegal Or A Violation Of Public Policy

Employee Entered Into Release Of Claims In Her Separation Agreement.         Elizabeth Castelo entered into a release of claims in her separation agreement from her employer Xceed Financial Credit Union. In arbitration, the employee argued that she had entered into a pre-dispute arbitration agreement that was invalid. The arbitrator ruled in favor of the employer, […]

Arbitration, Vacatur, Illegality, Fees: Second District, Div. 8 Holds That Arbitrator Could Decide Contract Was Illegal

Who Decides Illegality Of A Contract, The Arbitrator Or The Court?         Michael Bacall, an actor, was represented by Jeffrey Shumway, an attorney, who provided "legal/management services and [Chief Content Officer] services." Bacall alleged Shumway failed to disclose he was "inactive" with the State Bar, and Bacall terminated the contract with Shumway and his company […]

Arbitration, Delegation, Gateway Issues: SF Sup. Ct. Judge Holds Judge, Not Arbitrator, Decides Whether Contract With Arbitration Clause Is Legal

JAMS Clause Delegating Validity Issue To Arbitrator Was Not Clear and Unmistakable Delegation Of Legality Issue.         Who decides whether an arbitration agreement is part of an enforceable legal services agreement, the judge or the arbitrator?   That was the issue addressed by the Hon. Harold E. Kahn in an "Order Denying Defendants' Petition for […]

Illegality/Enforceability: Arbitration Agreement with Unlicensed Contractor May Still Be Enforceable

  Fifth District Finds That The Contract Containing the Arbitration Clause Is Not Automatically Unenforceable      With limited exceptions, an unlicensed contractor will find it impossible to collect payment, and may also have to disgorge payments already made. Can an award in favor of the client of an unlicensed contractor be set aside on the […]