Arbitration Clause

The trial court properly denied a residential care facility's motion to compel arbitration.  The facility's arbitration agreement was signed by the admitted resident's son, not the resident.  The resident was not mentally incompetent at the time of admission, and he had not designated his son his attorney in fact, or agent.  The resident didn't ratify the arbitration agreement by not… Read More

An employee did not agree to the employer's arbitration policy that was stated only in an employee handbook which the employee acknowledged receiving but did not sign anything agreeing to the employer's policies, particularly as the acknowledgement of receipt of the handbook didn't reference arbitration and the handbook itself said it was not an agreement.  The fact that the handbook… Read More

By failing to raise, in its opening memo on the motion to compel arbitration, the fact that the arbitration agreement contained a delegation clause that provided for the arbitrator to decide arbitrability issues, the defendant waived its right to rely on the delegation clause, and the court properly decided the arbitrability issues.  Waiting to raise delegation until the reply memo… Read More

Following Ahlstrom v. DHI Mortgage, Inc. (9th Cir. 2021) 21 F.4th 631, this decision holds that the court must always decide whether the party opposing arbitration entered into the agreement containing the arbitration clause.  That issue cannot be delegated to the arbitrator because the delegation clause itself is invalid if the opposing party didn't enter into the agreement containing it. Read More

The parties' arbitration provision said that "except for claims seeking injunctive or other equitable relief," the parties agreed to arbitrate any dispute between them.  Plaintiff filed suit including among others claims for specific performance, rescission, and violation of the UCL.  This decision holds that all of those claims are equitable or seek equitable relief and thus are not arbitrable under… Read More

Plaintiff purchased a commercial condominium as an investment from defendants under a purchase agreement and at the same time entered into a management agreement under which one of the defendant companies would manage the condominium.  Only the management agreement contained an arbitration clause, and it was narrow, not broad, applying only to disputes arising in connection with the interpretation and… Read More

BMW, the manufacturer, could  not compel arbitration of the car buyer's breach of express warranty, Magnuson-Moss Act and Song-Beverly Act violations based on the arbitration clause in the retail installment sale contract that the plaintiff signed to buy the car.  BMW was not a third party beneficiary of the arbitration agreement because while the agreement covered claims against non-signatory third… Read More

Plaintiff had no arbitration agreement with Essential Seasons, by which she was employed in 2017.  During that year Expert Staffing provided payroll services to Essential Seasons. In 2019, Expert Staffing hired plaintiff, and she signed its arbitration agreement which provided for arbitration of all claims against Expert Staffing and all related entities including entities where employees are sent to work. … Read More

Even when an arbitration agreement delegates arbitrability issues to the arbitrator, the court must decide whether an agreement to arbitrate was formed.  Formation issues may not be delegated to the arbitrator.  Here, no agreement to arbitrate was formed because the agreement purported to be between plaintiff and the corporate parent of plaintiff's employer, yet the arbitration agreement never referred to… Read More

Affirming an order denying an employer's motion to compel arbitration of the worker's wage and hour, retaliation and discrimination in employment claims, this decision holds the agreement was at least minimally procedurally unconscionable as it was an adhesion contract.  It also holds two provisions substantively unconscionable, one requiring any claims to be brought within a year of discovery (despite statutes… Read More

Following Dennison v. Rosland Capital LLC (2020) 47 Cal.App.5th 204 and other decisions, this opinion holds that a clear delegation clause, letting the arbitrator decide arbitrability questions was rendered ambiguous and ineffective by a severance clause that referred to an arbitrator or court finding any portion of the arbitration unenforceable.  The arbitration clause in an employment setting was unconscionable as… Read More