Category: Arbitration: Public Policy

Arbitration/Employment: One More Opinion Weighs In That Representative PAGA Claim Cannot Be Compelled To Arbitration

PAGA Claims Are Representative, Not Individual Claims, Fourth District, Division 3 Explains      Here, the arbitration agreement required plaintiff to arbitrate “claims for wages or other compensation due or penalties . . . [and] violation of statute.”  But she could not be compelled to litigate her California Private Attorney General Act claim as an individual, […]

Arbitration/Employment/Public Policy: Private Attorney General Act Claims Need Not Be Arbitrated

PAGA Claims Are Outside the Principles of the FAA and the Supreme Court Decisions Applying It      The Private Attorney General Act of 2004 (PAGA), Labor Code sections 2698 through 2699.5, authorizes actions by aggrieved employees on their own behalf and on behalf of other employees to recover civil penalties from employers for Labor Code […]

Arbitration/Employment/Waiver/Public Policy: Second District, Div. 1, Holds That Employer’s Right To Arbitrate Some Claims Was Not Waived, Because The Employee Had Not Shown Prejudice, But That PAGA Claims Could Not Be Arbitrated

PAGA Claims Could Not Be Arbitrated Because PAGA Is For The Benefit Of The Public, Not Private Parties      In Harvey v. Yellowpages.com, Case No. B239733 (2nd Dist. Div. 1 July 22, 2013) (Mallano, J., author of majority opinion) (unpublished), the Court considered whether the trial court properly denied an employer’s petition to compel arbitration […]

Arbitration/Public Policy/Preemption/Choice of Law: Ninth Circuit Holds That Montana’s Interest In Protecting Consumers From Unfair Arbitration Agreements Is Preempted By The Federal Arbitration Act

And Because Montana Law Was Preempted, Choice of Law Principles Required Application Of New York Law To Consumer Transaction   Wild Goose Goose Island Overlook at National Glacier Park, Montana.  Author: rmhermen.  GNU Free Documentation License.      After plaintiffs, who resided in Montana, sued their former Internet services provider Bresnan Communications, for enabling an advertiser […]

Arbitration/FAA/Waiver/Public Policy: 6th District Holds Federal Arbitration Act Does Not Permit Arbitration Agreements to Override Statutory Right To Bring Representative Claims Under PAGA

Same Issue Is Pending Before California Supreme Court in Iskanian      Does the Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, 131 S.Ct. 1740 (2011) permit arbitration agreements to override the statutory right to bring representative claims under the Labor Code Private Attorneys General Act of 2004 (PAGA)?  That’s the issue pending before the […]

Arbitration/Consumers/FAA/Unconscionability: 9th Circuit Holds Arbitration Clause In Consumer Credit Contract Lacking “Holder Rule” Language Is Not Unconscionable, And Doesn’t Fall Under “Public Injunction” Exception to Arb

Dissenting Judge Pregerson Attaches “Dense, Small Print, And Blurry Nine-Page Contract” As Appendix      We posted on December 16, 2012 about the Kilgore v. Keybank oral argument to the Ninth Circuit, sitting en banc.  The case involves a putative class action by former students of a failed helicopter flight-training school seeking injunctive relief against the […]

Arbitration/Landlord and Tenant/Public Policy: First District, Division 1 Holds That Arbitration Clause In Rental Agreement Is Void As Against Public Policy

  As A Result, Tenant Who Wants To Arbitrate Can’t      California Code of Civ. Proc. section 1953(a) provides, “Any provision of a lease or rental agreement of a dwelling by which the lessee agrees to modify or waive any of the following rights shall be void as contrary to public policy:  . . . […]

Arbitration/Public Policy/Standard of Review: Licensing Requirement for Contractors Constitutes Explicit Legislative Expression of Public Policy, That If Not Enforced By Arbitrator, Constitutes Grounds for Judicial Review

Trial Court Must Conduct De Novo Review To Determine Whether Licensing Statute Requires Disgorgement of Compensation By Unlicensed Contractor      Our next case addresses an important exception to the general rule that an arbitrator’s award cannot be vacated because of an error of fact or law:  the “public policy exception.”      The setting is a […]

Arbitration/1286.2 Vacatur: Second District, Div. 2 Affirms Judgment Confirming Arbitration Award in Attorney-Client Fee Dispute

“Manifest Disregard of the Law” Doctrine Inapplicable to Arbitrator’s Decision Concerning Attorney’s Fees Dispute Between Law Firm and Client      Appellant Fuchs & Associates, Inc. (Law Firm) sued former client, Elke Lesso, for unpaid attorney’s fees of $647.688.13.  An arbitrator found Law Firm was not entitled to recover additional fees, and its attorney fee lien […]

FAA’s National Policy Favoring Arbitration Requires Arbitrator In First Instance To Determine If Noncompetition Agreements Are Null And Void

  SCOTUS Smackdown of Supreme Court of Oklahoma      On November 26, 2012, in Nitro-Lift Technologies, L.L.C. v. Howard, 568 U.S. _______ (2012) (per curiam), the Supreme Court of the United States found it necessary to remind the Supreme Court of Oklahoma that “[i]t is a matter of great importance . . . that state […]