When a party to an arbitration becomes aware of facts showing the arbitrator is biased, the party must give notice of the arbitrator's disqualification before a hearing of any contested issue of fact relating to the merits of the claim or after any ruling by the arbitrator regarding any contested matter. CC\P 1281.91(c). Here, the arbitrator revealed that the father… Read More
In this unlawful detainer action, with a breach of warranty of habitability cross-complaint, the trial court threatened to send the matter to judicial arbitration, after which the parties agreed to arbitration. Though the parties' agreement wasn't crystal clear on the point, this decision holds that they had agreed to contractual arbitration governed by CCP 1280 et seq., ending in a… Read More
Following Jaramillo v. JH Real Estate Partners Inc. (2003) 111 Cal.App.4th 394 and Harris v. University Village Thousand Oaks, CCRC, LLC. (2020) 49 Cal.App.5th 847, this decision holds that Civ. Code 1953(a)(4) renders unenforceable any arbitration clause in a residential lease--at least so long as the FAA does not apply to the lease. Read More
Joining the 1st Circuit, this decision holds that a worker can be "engaged in interstate commerce" and thus exempt from the FAA even though the worker, himself, does not cross state lines--so long as he is part of a distribution chain that extends across state lines. Thus, Amazon's "last-mile" delivery drivers were exempt from the FAA. Though they didn't cross… Read More
This decision affirms an order denying an employer's motion to compel arbitration. Though it found only a minimal degree of procedural unconscionability in that the arbitration agreement was an adhesion contract, it holds that there was a high degree of unconscionability inherent in the arbitration agreement's (a) too restrictive limitation of discovery and (b) non-mutuality. Discovery was limited to two… Read More
Following Cable Connection, Inc. v. DirecTV, Inc. (2008) 44 Cal.4th 1334, this decision holds that an arbitrration clause which provided that "either party may file an application to correct or vacate the arbitration award or an application for de novo review on all questions of law based on the arbitrator’s finding[s] of fact" allowed the courts to review the arbitration… Read More
Plaintiff bought a used car on credit, signing a contract with an arbitration clause requiring arbitration of any dispute "which arises out of or relates to . . . condition of this vehicle, this contract or any resulting transaction or relationship (including any such relationship with third parties who do not sign this contract)." This decision holds that the clause… Read More
James and Diane were temporary conservators of Elizabeth's person, but not of her estate. When they had Elizabeth admitted to defendant's old folks home, James and Diane signed an arbitration agreement on Elizabeth's behalf. This deision holds that the arbittration agreement was unenforceable against James and Diane sinnce they didn't sign in their individual capacity and unenforceable against Elizabeth because… Read More
An employee cannot be compelled to arbitrate a PAGA claim even though he signed an arbitration agreement with his employer. The PAGA claim is a suit by the state which did not agree to arbitrate its claim. Epic Systems Corp. v. Lewis (2018) 138 S.Ct. 1612 does not call this rule into question. Read More
As part of a settlement of a prior wage and hour lawsuit, employee signed an arbitration agreement with employer. Four years later, plaintiff brought this PAGA claim against employer. This decision affirms an order denying the employer's motion to compel arbitration. The State of California is the real party in interest in a PAGA action. It did not sign the… Read More
Under Ins. Code, § 11580.2(f), disputes between insureds and insurers over the amount due under the uninsured or underinsured motorist coverage in an auto policy must be submitted to arbitration, which, however, is limited to the questions of whether the insured is entitled to recover damages from the uninsured or underinsured motorist and the amount of the insured's damages. CCP… Read More
An employer's arbitration agreement said that the employer and employee agreed to arbitrate all claims arising from the employment relationship, including class action claims and in the next sentence stated that the employee waived the right to participate in any class action lawsuit. This decision holds that the agreement unambiguously required the parties to submit class action claims to arbitration. … Read More
This decision upholds an employer's arbitration clause in the employment agreement of a relatively high-level employee against the employee's argument it was unconscionable. It finds no evidence of procedural unconscionability, carefully distinguishing OTO, L.L.C. v. Kho (2019) 8 Cal.5th 111 on its facts. Here, the employer did not rush the employee but encouaged him to seek legal advice. Also, the… Read More
Following Clifford v. Quest Software Inc. (2019) 38 Cal.App.5th 745, this decision holds that an employer's arbitration clause could not avoided as unconscionable or contrary to public policy under McGill v. Citibank, N.A. (2017) 2 Cal.5th 945 because the employee's wage and hour complaint did not seek a public injunction, but only relief for a small group of employees, including… Read More
This decision holds that the California Arbitration Act (and CCP 1282.6) do not authorrize an arbitrator to issue a subpoena for documents from a third party for discovery purposes, as opposed to for production at the arbitration hearing. At least, that is true if, as in this case, the arbitration agreement did not invoke the expanded discovery procedures allowed under… Read More
When an arbitrator issues an order directing a third person, not a party to the arbitration, to provide discovery at the request of one of the arbitrating parties, the third person must first object before the arbitrator. If unsuccessful there, the third person may petition the superior court to vacate the arbitrator's decision on the discovery matter. In that court,… Read More
The trial court erred in compelling arbitration of plaintiff's individual wage and hour claims while retaining jurisdiction over his PAGA claims. The employer's arbitration clause contained a waiver of "representative" claims--a word broad enough to encompass PAGA claims. Since PAGA claims cannot be waived, the purported waiver was invalid. But the arbitration clause also said that the waiver provision was… Read More
Both employer and employee signed a three-page standalone arbitration agreement, but both failed to put their initials by the bolded provision that said both waived the right to a jury trial. This decision holds that the parties are bound by the arbitration agreement. Their signatures showed their assent to its terms which unequivocally bound them to arbitrate. The employee's uncommunicated… Read More
Once an arbitrator has issued an "award," the arbitrator can alter or amend the award only within a prescribed time period and for strictly limited reasons. CCP 1283.4. Also, entry of an award triggers the court's jurisdiction to consider a petition to confirm or vacate the award. So whether an arbitrator's ruling is an "award" has important consequences. When the… Read More
Labor Code sections 558 and 1197.1, allow the Labor Commissioner to sue for set civil penalties in addition to an amount sufficient to recover underpaid wages if an employer fails to pay overtime wages or minimum wages as required by California law. This decision holds that in a PAGA suit, the employee plaintiff may recover only the set civil penalty… Read More
