Plaintiffs brought an action against their former lawyers after the lawyers “settled several prior lawsuits brought on their behalf and did not allocate a sufficient amount of the settlement funds to the costs of suit, making plaintiffs liable to the former attorneys for costs that were actually recovered as part of the settlements.” The lawyers petitioned […]
Arbitration Agreement Procedurally Unconscionable, But Not Substantively Unconscionable.
The defendant/employer had a multi-level Arbitration Agreement approach to addressing workplace concerns. The first step obligates the employee to bring concerns to the attention of management. If still unresolved, the second step requires a dispute to be presented to a panel of three employees, with each side being given 30 minutes to present its position to the […]
Service Of Notice To Vacate Arbitration Award Is Not Accomplished By Merely Sending Notice Pursuant To Leave Provision.
Condominium homeowners petitioned the superior court to vacate an arbitration award. The trial court dismissed the petition based on the homeowners’ failure to properly serve their petition to vacate on the owners of the development as required by Code of Civil Procedure section 1288. The homeowners argue they served the petition in accordance with the requirements […]
Charter City Must Conduct Arbitration For Furlough Grievances.
A charter city adopted a mandatory furlough program for its civilian employees. Employees lodged grievances, arguing furloughs violated duly ratified memorandums of understanding [MOUs] with their union. The grievances were denied and the employees requested arbitration. The city refused to arbitrate, and the superior court granted the union’s petition for an order compelling the city […]
Mistake Of Arbitrator Not Enough To Invoke § 10 (a)(4) Of Federal Arbitration Act.
A medical doctor entered into a contract with a health plan. The doctor agreed to provide medical care to members of the health plan and the health plan agreed to pay the doctor. The doctor filed a class action in New Jersey alleging the health plan failed to make full and prompt payment to the doctors. […]
Entity Acting On Behalf Of Defunct Company May Enforce Arbitration Agreement.
A financial services company, sued for allegedly providing bad investment advice, was denied its petition to compel arbitration because the original entity, another financial services company, which entered into the arbitration agreement, was a defunct company. The appellate court reversed, holding the financial services company, as an agent of the defunct company and a third party […]
U.S. Supreme Court holding on preemption of class action waivers does not apply to representative actions under Private Attorney General Act.
In AT&T Mobility LLC v. Concepcion (2011) 131 S.Ct. 1740, [179 L.Ed.2d 742], the U.S. ff.). In Brown v. Ralphs Grocery Company (Cal. App. Second Dist., Div. 4; July 12, 2011) (As Mod. July 20, 2011) 197 Cal.App.4th 489, [2011 DJDAR 10523], plaintiff sued for alleged violations of the Labor Code, asserting both a class action cause of action […]
Fifteen Percent (15 %) Interest Not Usury.
Plaintiff borrowed money from a mortgage lender secured by a deed of trust on certain real property. The interest rate was 15%, with interest-only payments from 2009 until 2012. When plaintiff defaulted, the lender foreclosed. Plaintiff filed suit against the lender claiming the interest rate on the loan exceeded the maximum allowed by the California Constitution, […]
Arbitration Agreement May Not Delegate Issue Of Arbitrability To The Arbitrator.
In Chin v. Advance Fresh Concepts Franchise Corp. (Cal. App. Second Dist., Div. 4; April 20, 2011) 194 Cal.App.4th 704, [123 Cal.Rptr.3d 547, 2011 DJDAR 5595], an arbitration clause provided that the arbitrator, rather than the court, was to decide issues of arbitrability (delegation clause). But, even if such a clause is unconscionable, the court should nevertheless order arbitration […]
Contract Principles Determine Whether Parties Agreed To Binding Arbitration.
The Goffs were in a fee dispute with a law firm and offered binding arbitration. The law firm declined. Subsequently, the law firm changed its position and agreed to arbitrate, whereupon the Goffs withdrew their request for binding arbitration. The matter went to arbitration and the arbitrator ruled that the parties had agreed to binding arbitration. […]
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