After the U.S. Supreme Court issued its opinion in AT&T Mobility LLC v. Concepcion (2011) 131 S.Ct. 1740, [179 L.Ed.2d 742], Nordstrom made revisions to its employee arbitration policy contained in its employee handbook. These changes precluded employees from bringing most class action lawsuits. Weeks later, plaintiff filed a class action against Nordstrom, alleging violations of […]
Investment Rating Service’s Anti-SLAPP Motion Denied.
An investment rating service brought an anti-SLAPP motion [Code of Civil Procedure section 425.16] in an action filed by the California Public Employees Retirement System [CalPERS] for its ratings of three structured investment vehicles [SIVs] which later collapsed and caused billions in losses. The trial court denied the motion. The appellate court affirmed, noting that the […]
Trial Court Erred In Decertifying Class Action.
After granting class certification against a retail chain that did not supply chairs to its cash register employees, the trial court granted the chain’s motion for decertification. The appellate court reversed, stating: “We conclude that, under the analytic framework promulgated by Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal.4th 1004, [273 P.3d 513, 139 […]
Arbitration Agreement Found Unconscionable [“Nothing in fine print is ever good news.” Andy Rooney].
Car wash employees brought a class action against car wash companies. On defendants’ petitions for arbitration, the trial court concluded the arbitration agreement was unconscionable and refused to enforce it. Agreeing the arbitration agreement “suffered from multiple defects demonstrating a systematic lack of mutuality that favored the car wash companies,” the appellate court affirmed. (Carmona […]
You Can Trust Me With Our Nondisclosure Agreement; Tell Me About Your Invention.
During negotiations, which were the subject of a nondisclosure agreement, an inventor described the invention of “digital stamping technology” [DST]. After negotiations failed, the inventor discovered the other party to the negotiations had filed for patents encompassing its DST. After a court trial, the court awarded the inventor damages, prejudgment interest and attorney fees. On […]
Consumer Protection Statutes May Not Be Used To Fight Tax Overcharges By Retailers.
In a four to three decision, the California Supreme Court held that California’s consumer protection statutes may not be utilized when a retailer charges tax on take-out coffee, which is contrary to law. The majority opinion states: “We conclude that the tax code provides the exclusive means by which plaintiffs’ dispute over the taxability of […]
Permits For Tow Truck Companies.
The question on appeal was whether tow truck companies and drivers must obtain a permit in each jurisdiction in which they tow cars. The appellate court concluded a city was only authorized to regulate those tow truck companies and drivers who maintain their principal place of business or employment in that city. (California Tow Truck […]
Non-Disclosure Agreement: Whoever Keeps His Mouth And His Tongue Keeps Himself Out Of Trouble. Proverbs 21:23.
An inventor of a memory chip design brought an action against defendants alleging misappropriation of trade secrets, unfair competition, breach of contract and related causes of action, but the amended and operative pleading was only for breach of contract. A jury found the defendant breached the non-disclosure agreement signed at the outset of negotiations and […]
Claim Of Equitable Tolling Of Statute Of Limitations While Plaintiff Pursued Her Work Comp Case.
Plaintiff fell from an outdoor balcony at the offices of her employer. Immediately she began receiving workers’ compensation benefits and later filed a claim with the Workers’ Compensation Appeals Board seeking additional benefits. More than two years after the fall, she filed a superior court action for premises liability against the building owners. She alleged […]
Sarbanes-Oxley Now Has Far Reaching Tenacles.
Petitioners/plaintiffs brought an action against their former employers, privately held companies that provide advisory and management services to a mutual fund company. The allegations are that after plaintiffs raised concerns about overstated expenses associated with operating the mutual funds, they suffered adverse actions. “No [public] company. . . or any officer, employee, contractor, subcontractor, or […]
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