Category: Arbitration: Public Policy

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

July 7, 2023 · Arbitration: Employment, Arbitration: Illegality, Arbitration: 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, […]

Public Policy, Vacatur: First District Div. 3 Holds Late Penalty On Loan Default Resulted In Forfeiture Violating Public Policy And Justifying Vacatur Of Arb Award

October 4, 2022 · Arbitration: Public Policy, Arbitration: Section 1286.2 Vacatur

Violating Public Policy Can Be Ground For Vacating Award. Liquidated damages are presumed invalid in a consumer contract and presumed valid in a non-consumer contract. The Honchariws borrowed $5.6M secured by real property in a "non-consumer" contract — so a liquidated damages provision was presumptively valid when they defaulted on the loan, and an […]

Arbitration, Public Policy, PAGA: First District, Div. 3 Affirms Order Denying Motion To Compel Arbitration Of PAGA Claim

July 30, 2021 · Arbitration: PAGA, Arbitration: Public Policy

Once Again, A California Court Of Appeal Affirms That Iskanian Is Still Good Law. In Winns et al. v. Postmates Inc., A155717 (1/3 7/20/21) (Petrou, Fujisaki, Jackson), Postmates argued its couriers had waived the right to bring representative PAGA claims, and that the California Supreme Court's Iskanian opinion holding such waivers to be invalid […]

Arbitration, Public Policy: An Arbitration Provision Purporting To Waive Consumer’s Right To Seek Public Injunctive Relief Is Invalid And Unenforceable

February 8, 2021 · Arbitration: Enforceability, Arbitration: Federal Arbitration Act, Arbitration: Public Policy, Arbitration: Waiver

McGill Is Still Good Law. The action in Joe Maldonado v. Fast Auto Loans, Inc., G058645 (4/3 2/8/21) (O'Leary, Aronson, Thompson) centered on whether McGill v. Citibank, N.A., 2 Cal.5th 945 (2017) is still good California law and whether it has been preempted by the Federal Arbitration Act. McGill, which we posted about on […]

Arbitration, Policy, Choice of Law, FAA, Severance: McGill v Citibank Lives: Arbitration Provision Eliminating Any Forum For Public Injunctive Relief Is Unenforceable

September 29, 2020 · Arbitration: Choice of Law, Arbitration: Enforceability, Arbitration: Federal Arbitration Act, Arbitration: Public Policy, Arbitration: Severability, Arbitration: Waiver

Case Offers Primer On McGill v. Citibank, N.A. Defendant and appellant DACM, Inc. (Del Amo) sold a motorcycle to Joseph Mejia, who paid some cash and financed the remainder of the purchase with a credit card. And, the credit card included an arbitration provision covering Del Amo. So when Mejia sued Del Amo for […]

Arbitration, Landlord/Tenant, Waiver, Public Policy: Under California Law, Arbitration Clause In Residential Lease Is Void

September 5, 2020 · Arbitration: Landlord/Tenant, Arbitration: Public Policy, Arbitration: Waiver

Case Was Governed By State Law Rather Than The Federal Arbitration Act. The defendant landlord in Keisa Williams et al. v. 3620 W. 102nd Street, Inc., et al., B297824 (2/8 8/24/20) (Wiley, Grimes Stratton), did not discharge the burden of establishing that the residential lease at issue involved interstate commerce, and hence California state […]

Arbitration, Vacatur, Public Policy: Second Dist., Div. 6 Holds Arbitrator Award Violated Public Policy in HOA/Developer Dispute

February 7, 2020 · Arbitration: Homeowners, Arbitration: Public Policy, Arbitration: Section 1286.2 Vacatur, Arbitration: Unconscionability

And Now There Is A Split Between The 4th District, Div. 3, And The 2nd District, Div. 2. In Branches Neighborhood Corp. v. CalAtlantic Group, Inc., 26 Cal.App.5th 743 (2018), a homeowner's association began a construction defects arbitration with a developer without first getting a vote of 51% of its […]

Arbitration, FAA: Ninth Circuit Holds Federal Arbitration Act Does Not Preempt California’s McGill Rule

June 28, 2019 · Arbitration: Federal Arbitration Act, Arbitration: Public Policy, Arbitration: Severability

McGill v. Citibank Held Agreement To Waive Right To Seek Public Injunctive Relief Is Unenforceable. In McGill v. Citibank, N.A. (2017), the California Supreme Court held that a contract purporting to waive a party's right to seek public injunctive relief in any forum is unenforceable under California law. The key issue in Blair […]

Arbitration, Powers, Public Policy, Vacatur: Arbitrator Who Found HOA Failed To Follow Pre-Litigation Requirements In CC&Rs Did Not Exceed His Powers

August 27, 2018 · Arbitration: Public Policy, Arbitration: Section 1286.2 Vacatur

Arbitrator Did Not Exceed Powers By Abridging An Unwaivable Statutory Right Or Policy. One of the grounds for a court to vacate an arbitrator's award is that the arbitrator exceeded his or her powers. See Code of Civ. Proc. section 1286.2(a)(4). And arbitrators may exceed their powers by issuing an award that violates a party's […]

Arbitration, Federal Arbitration Act, Public Policy: 9th Circuit Holds That FAA Does Not Apply To Agreements Between Prosecutors And Citizens Resolving Alleged Criminal Violations

December 27, 2017 · Arbitration: Federal Arbitration Act, Arbitration: Public Policy

And Such An Agreement To Arbitrate Disputes Invoking The Criminal Law Would Be Contrary To Public Policy. The context for our next case is California's Bad Check Diversion Program (Program), created to relieve California courts of the case overload caused by the criminalization of the writing of bad checks with intent to defraud. The statutory […]