California Supreme Court Civil Issues Pending: ADR
[UPDATED THROUGH APRIL 3, 2013]
Was Vacating the Arbitration Award Consistent With Limited Judicial Review? After the Court of Appeal reversed a decision to vacate an arbitration award, the Court granted review on the following issues: (1) Is an employer’s honest belief that an employee was violating company policy or abusing medical leave a complete defense to the employee’s claim that the employer violated the Moore-Brown-Roberti Family Rights Act (Gov. Code §§ 12945.1, 12945.2)? (2) Was the decision below to vacate the arbitration award in the employer’s favor consistent with the limited judicial review of arbitration awards? Richey v. Autonation, Inc., S207536 (opinion below B234711, formerly 210 Cal.App.4th 1516, as modified 211 Cal.App.4th 701b). Review was granted on 2/13/13.
Did U.S. Supreme Court overrule Provisions of California Labor Law?
In reviewing an order compelling arbitration and dismissing class claims, the court granted review on the following issues: (1) Did AT&T Mobility LLC v. Concepcion (2011) 563 U.S. __ [131 S. Ct. 1740, 179 L.Ed.2d 742] impliedly overrule Gentry v. Superior Court (2007) 42 Cal.4th 443 with respect to contractual class action waivers in the context of non-waivable labor law rights? (2) Does the high court’s decision permit arbitration agreements to override the statutory right to bring representative claims under the Labor Code Private Attorneys General Act of 2004 (Lab. Code, § 2698 et seq.)? (3) Did defendant waive its right to compel arbitration? Iskanian v. CLS Transportation Los Angeles, LLC, S204032 (opinion below, B235158, formerly 206 Cal.App.4th 949), review granted on 9/19/12. Update 10/29/12: review granted in Caron v. Mercedes-Benz Financial Services USA LLC, S205263 (opinion below, G044550, formerly 208 Cal.App.4th 7), with briefing deferred pending resolution of Iskanian. Update 12/12/12: Review granted in Reyes v. Liberman Broadcsting, Inc., S205907 (opinion below B235211, formerly 208 Cal.App.4th 1537), with briefing deferred pending resolution of Iskanian. Update 2/13/13: Review granted in Franco v. Arakelian Enterprises, Inc., S207760 (B232583, formerly 211 Cal.App.4th 314, as modified). Briefing was deferred pending a decision in Iskanian. Update 4/10/13: Review granted in Flores v. West Covina Auto Group, LLC, S208716 (opinion below B238265, formerly 212 Cal.App.4th 895.) Briefing was deferred pending a decision in Iskanian.
Is Arbitration Clause in Employment Application Valid? Is an arbitration clause in an employment application that provides “I agree to submit to binding arbitration all disputes and claims arising out of the submission of this application” unenforceable as substantively unconscionable for lack of mutuality, or does the language create a mutual agreement to arbitrate all such disputes? (See Roman v. Superior Court (2009) 172 Cal.App.4th 1462.) Wisdom v. Accentcare, Inc., S200128. (opinion below C065744, formerly 202 Cal.App.4th 591), review granted 3/28/12. Update: 3/20/13: Review granted in Baltazer v. Forever 21, Inc., S208345 (opinion below B237173, formerly 212 Cal.App.4th 221.) Briefing is deferred pending a decision in Wisdom.
Does the FAA Preempt State Consumer Protections Against Mandatory Arbitration? Does the Federal Arbitration Act (9 U.S.C. § 2), as interpreted in AT&T Mobility LLC v. Concepcion (2011) 563 U. S. __, 131 S.Ct. 1740, preempt state law rules invalidating mandatory arbitration provisions in a consumer contract as procedurally and substantively unconscionable? Sanchez v. Valencia Holding Co. LLC, S199119 (opinion below B228027, formerly 201 Cal.App.4th 74), review granted 3/21/12. Update 5/9/12: Review granted in Buzenes v. Nuvell Financial Services, S200376 (opinion below B221870, nonpublished). Briefing deferred pending decision in Sanchez. Update 6/13/12: Review granted in Mayers v. Volt Management Corp., S200709 (opinion below G045036, formerly 203 Cal.App.4th 1194). Briefing deferred pending decision in Sanchez. Update 12/19/12: Review granted in Goodridge v. KDF Automotive Group, Inc., S206153 (opinion below D060269, formerly 209 Cal.App.4th 325), with briefing deferred pending the resolution of Sanchez.
Case remanded from the USSC – Can Arbitration Over a Wage Claim be Compelled Prior to the Conclusion of the Administrative Proceedings of the Labor Commissioner? The trial court denying a motion to compel arbitration, and the Court of Appeal reversed. The California Supreme Court granted review on these issues: (1) Can a mandatory employment arbitration agreement be enforced prior to the conclusion of an administrative proceeding conducted by the Labor Commissioner concerning an employee’s statutory wage claim? (2) Was the Labor Commissioner’s jurisdiction over employee’s statutory wage claim divested by the Federal Arbitration Act under Preston v. Ferrer (2008) __ U.S. __, 128 S.Ct. 978, 169 L.Ed.2d 917? Sonic-Calabasas A, Inc. v. Moreno, S174475 (opinion below B204902, formerly 174 Cal.App.4th 546), petition granted 9/9/09. The California Supreme Court issued its opinion on 2/24/11, reversing the Court of Appeal and reinstating the trial court’s order that “until there has been the preliminary non-binding hearing and decision by the Labor Commissioner, the arbitration provisions of the employment contract are unenforceable, and any petition to compel arbitration is premature and must be denied.” Update 11/3/11: The U.S. Supreme Court granted the petition for writ of certiorari, vacated the existing judgment and remanded for further consideration in light of AT&T Mobility LLC v. Concepcion, ___ U.S.__ (2011). Update 1/11/12: The California Supreme Court ordered to parties to submit supplemental briefing by 2/10/12 with replies due by 2/24/12. The parties requested extensions. Update 3/7/13: Oral argument scheduled for 4/3/13. Update 4/3/13: Case argued and submitted. The briefs are here.
Can City’s Salary-Setting and Budget-Making Powers Be Subject to Arbitration?
Could grievances challenging the imposition of furloughs on employees covered by a ratified Memorandum of Understanding be referred to arbitration in accordance with the agreement, as ordered by the trial court, or was arbitration barred as an improper delegation of the city’s discretionary salary-setting and budget-making powers, as held by the Court of Appeal? City of Los Angeles v. Superior Court, S192828 (opinion below B228732, formerly 193 Cal.App.4th 1159), review granted 7/13/11. Update 10/31/12: The court requested the parties to file supplemental briefs addressing the following question: Do the memorandums of understanding at issue here, including but not limited to their management rights clauses (article 1.9), render the decision whether to impose employee furloughs inarbitrable? Update 3/7/13: Oral argument scheduled for 4/3/13. Update 4/3/13: Case argued and submitted. The briefs are here.
