Category: Arbitration: Public Policy

Public Policy: Arbitrator’s Determination That An Agreement Imposing Cost On Departing Partner Servicing Firm Clients, And Lacking A Specific Geographic Limitation, Is Enforceable, Does Not Violate Public Policy

SingerLewak LLP v. Gantman Contains Excellent Discussion Of The “Public Policy Exception” That Sometimes Permits Judicial Review Of An Arbitrator’s Decision – But Not Here.      It is well-established that arbitrators do not exceed their powers just because they assign an erroneous reason for their decision.  Therefore, the vast majority of arbitrator’s awards are immune […]

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 […]

Public Policy And Florida Choice Of Law Result In Affirmance Of Order Partially Denying Defendant’s Motion To Compel Arbitration

  Arbitration of Unlawful Group Boycott Claim Under California Cartwright Act Was The Juicy Florida Choice Of Law Law Issue.     HCF Insurance Agency v. Patriot Underwriters, Inc., Case No. B257715 (2/5 May 27, 2015) (unpublished) involved a dispute between plaintiff insurance broker, and defendant program administrator/underwriter, partially governed by an arbitration clause.  The Court […]

Arbitration, Public Policy, Preemption: California Supreme Court Will Consider Whether Federal Arbitration Act Preempts California Rule That Statutory Claims For Public Injunctive Relief Are Not Subject To Compulsory Private Arbitration.

Fourth District, Division Three Ruled Earlier In Citibank v. McGill That “Broughton-Cruz” Rule Fell Prey To Federal Arbitration Act Preemption. Fallen Prey.  Circa 1934-39.  Library of Congress.     Under California’s “Broughton-Cruz” rule, arbitration provisions are unenforceable as against public policy if they require arbitration of Unfair Competition Law, False Advertising Law, or Consumer Legal Remedies […]

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 […]

Arbitration, Public Policy: Fourth District, Division 3 Holds AT&T Mobility v. Concepcion Preemption Sweeps Away Broughton-Cruz Rule That Prohibited Arbitration Of UCL, FAL, And CLRA Injunctive Relief Claims Brought For The Public’s Benefit

December 18, 2014 · Arbitration: Public Policy

But Iskanian’s Analysis Of PAGA Representative Action Waivers Remains Intact Under This Court’s Analysis.      The California Supreme Court developed the “Broughton-Cruz” rule, under which arbitration provisions are unenforceable as against public policy if they require arbitration of Unfair Competition Law, False Advertising Law, or Consumer Legal Remedies Act injunctive relief claims brought for the […]

Arbitration/Vacatur/Public Policy: Arbitrator Did Not Exceed Powers By Not Providing For Greater Inspection Of Documents

Arbitrator Did Not Exceed Jurisdiction Because Awards Ruling On Access To Records Did Not Violate Public Policy.      Sometimes the Court’s weariness with a dispute drips onto the page as in this description of an appeal from judgments entered after the trial court denied petitions “to vacate the most recent arbitration awards in a decade-long […]

Arbitration/Public Policy/Correction Of Judgment: Policy Against Certain Fee Splitting Arrangements Does Not Justify Judicial Review Of Arbitration Award Enforcing Oral Fee Splitting Arrangement

Arbitrator Did Not Exceed His Powers By Enforcing Oral Fee Splitting Arrangement       Attorneys Cohen and Sheinkopf had an oral agreement to split client fees:  75% to Cohen, 25% to Sheinkopf.  After the two attorneys went their separate ways, they arbitrated a fee dispute in which the arbitrator enforced their oral fee splitting agreement, resulting […]

Arbitration/Employment/Class/Waiver/FAA/Public Policy: California Supreme Court Rules in Iskanian: Yes On Waiver Of Class Action, No On Waiver Of PAGA Claims

  Iskanian Decision Yields Opinion Of Four, Plus Justice Chin, Concurring, Plus Justice Werdegar, Concurring And Dissenting      In a much-awaited decision, the California Supreme Court has ruled that a state’s refusal to enforce a class action waiver on grounds of public policy or unconscionability is preempted by the Federal Arbitration Act (FAA), but that […]