Archives: Arbitration Agreements

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Employer Could Not Establish Sufficient Evidence to Prove Employee Signed an Arbitration Agreement through an Electronic Signature

A new case from the California Court of Appeal, Fourth Appellate District, Division Two, Ruiz v. Moss Bros. Auto Group, Inc., was certified for publication on December 23, 2014, and addresses an area of interest for many employers – electronic signatures on arbitration agreements. Employers must build safeguards into such systems  to be able to prove … Continue Reading

Arbitrator, Not Court, Decides Whether Arbitration Agreement Applies to Class Claims, California Court Rules

Whether the parties to an arbitration agreement agreed to class arbitration is a question for the arbitrator, not the trial court, the California Court of Appeal has ruled, reversing an order dismissing class claims alleging violations of California’s Fair Employment and Housing Act and Unfair Competition Act. Sandquist v. Lebo Automotive, Inc., No. B244412 (Cal. … Continue Reading

Arbitrator, Not Court, Decides Arbitration Agreement’s Enforceability, California Court Holds

A clause delegating to an arbitrator the authority to decide questions of an arbitration agreement’s enforceability was not unconscionable under California law, the California Court of Appeal has ruled. Malone v. Superior Court, No. B253891 (Cal. Ct. App. June 17, 2014). The Court affirmed an order enforcing the delegation clause and compelling arbitration. Significantly, the … Continue Reading

California Tide is Turning in Favor of Arbitration

In a decision that should not go unnoticed in the wake of the California Supreme Court’s ruling in Iskanian v. CLS Transp. Los Angeles, LLC which rejected prior limitations on class action waivers but held representative actions under California’s Private Attorneys General Act cannot be waived, the California Court of Appeal in Malone v. Superior … Continue Reading

California Supreme Court Okays Class Action Waivers and Overrules Gentry v. Superior Court, but Bans Waivers of Representative Actions Under the PAGA

Overruling Gentry v. Superior Court, 42 Cal. 4th 443 (2007) as preempted by the Federal Arbitration Act (“FAA”), the California Supreme Court upheld the validity of class action waivers in employment arbitration agreements. Iskanian v. CLS Transportation Los Angeles, LLC, No. S204032  (Cal. Jun. 23, 2014).  Declining to follow D.R. Horton, 357 NLRB No. 184 … Continue Reading

Employer Did Not Waive Right to Arbitration Despite One-Year Delay, California Court Rules

An employer that petitioned to compel arbitration one year after the employee filed his employment-related complaint did not waive its right to arbitrate the complaint, the California Court of Appeal has ruled, confirming the burden of proving a party waived its right to arbitration is a heavy one. Gloster v. Sonic Automotive, Inc., No. A137081 … Continue Reading

Arbitrator, Not Court, Decides Arbitration Agreement’s Enforceability, California Court Rules

A trial court lacked authority to rule on the enforceability of an arbitration agreement when the parties had contracted to delegate questions about the agreement’s enforceability to the arbitrator, the California Court of Appeal has ruled, reversing the denial of arbitration in a wrongful discharge action. Tiri v. Lucky Chances, Inc., No. A136675 (Cal. Ct. … Continue Reading

Spanish-Speaking Employees and English Arbitration Agreements

On April 21, 2014, a California Appellate Court held that an arbitration agreement is unconscionable and an employer cannot compel arbitration when the employer failed to translate the entirety of an English-language employment agreement containing an arbitration agreement, confidentiality clause, and enforceability provision for its Spanish-speaking employees. In Esteban H. Carmona et al. v. Lincoln … Continue Reading

California Courts Continue to Embrace Binding Arbitration Agreements

With increasing frequency, California courts (especially federal district courts) are enforcing binding arbitration agreements between employers and employees.  In Richards v. Ernst & Young, No. 11-17530 (9th Cir. Aug. 21, 2013), the Ninth Circuit recently reversed a denial of the employer’s motion to compel arbitration of the employee’s wage and hour claims.  In so doing, … Continue Reading
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