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California Appellate Tracker

The following summaries are of recent published decisions of the California appellate courts, the Ninth Circuit, and the United States Supreme Court. The summaries are presented without regard to whether Severson & Werson represented a party in the case.

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The California Arbitration Act governs procedure in state court in compelling arbitration even when the FAA governs the substantive rules regarding arbitration.  Under CCP 1281.2(c), a trial court has discretion to deny arbitration if a party to the arbitration agreement is also a party to a pending court action with a third party, "arising out of the same transaction or… Read More

The FAA applies to an arbitration clause in an employment agreement involved in interstate commerce and preempts California Labor Code 229 which forbids arbitration of wage and hour claims.  The parties did not elect out of FAA preemption by a choice of law clause in the employment contract generally choosing California law, but not specifically choosing California law regarding arbitration… Read More

Burlington forced Gallano, one of its check-out clerks, to sign a promissory note for losses on return of items by customers or mistaken pricing of goods due to other workers' errors in affixing price tags.  This opinion holds that Gallano stated viable claims against Burlington for violation of Lab. Code 2802 (which requires the employer to reimburse employees for expenses… Read More

Part of California's Prevailing Wage Law, Labor Code 1772 provides:  "Workers employed by contractors or subcontractors in the execution of any contract for public work are deemed to be employed upon public work."  Delving into the section's history and rejecting Court of Appeal decisions giving it a different interpretation, this decision holds that the section merely makes it clear that… Read More

California's Prevailing Wage Law (Lab. Code 1720(a)(1)) defines a "public work" as including construction and installation.  This decision holds that while the statute does not expressly say so, the prior common meaning of a public work--that is a physical installation on real property--provides a context for the statutory definition, confining its broad undefined terms, construction and installation, to tasks performed… Read More

A statement of decision entered in earlier litigation brought against the plaintiff in this suit was a sufficiently final determination to be accorded claim preclusive effect even though the parties thereafter settled and obtained a stipulated order from a different judge vacating key portions of the statement of decision.  The opinion contains a lengthy discussion of authorities on the point… Read More

Following Howell v. Hamilton Meats & Provisions, Inc. (2011) 52 Cal.4th 541 and Pebley v. Santa Clara Organics, LLC (2018) 22 Cal.App.5th 1266,  this decision holds that a plaintiff who has medical insurance but chooses to use out-of-plan doctors for his care is treated for damage purposes as if he were uninsured and may submit the doctors' bills as evidence… Read More

Although the trial court did not abuse its discretion in excluding from evidence the digitized spreadsheets of meal break and rounding of work hours for lack of a proper foundation, it did abuse its discretion in excluding an expert witness' opinion based on those digitized spreadsheets.  An expert may rely on inadmissible evidence if based on information that is reliable… Read More

Under Idaho law, a title insurance policy that excluded coverage for claims that were "not shown by the public record" did not exclude coverage of claims that arose from the county's official road maps that described a road through the insured's property.  "Public records" was undefined in the policy and could be reasonably be construed to include official documents brought… Read More

In hospital peer review committee proceedings, a person hired by a hospital to serve as a hearing officer may be disqualified for financial bias under Business and Professions Code section 809.2(b), on grounds that the officer has an incentive to favor the hospital in order to increase the chances of receiving future appointments.  Under the statute, a hearing officer is… Read More

The International Convention on the Recognition and Enforcement of Foreign Arbitral Awards contains a self-executing direction for the courts of the signatory states to compel arbitration of agreements falling within the Convention's scope.  Since that provision is self-executing and not an "Act of Congress," the McCarran-Ferguson Act does not reverse preempt it.  Accordingly, the Convention preempts Washington state law that… Read More

This decision affirms denial of the employer-defendant's motion to compel arbitration under an agreement that delegated arbitrability questions to the arbitrator.  The arbitration agreement and its delegation clause were both unconscionable for the same reasons.  Procedurally, the agreement was presented as an adhesion contract that employees had to sign to retain employment.  Also the agreement was nine pages of 10… Read More

This decision reverses a summary judgment, finding that a question of fact exists as to whether defendant insurer acted reasonably to settle this catastrophic injury case within the insured's $25,000 policy limits.  During the week the plaintiff's policy limits demand remained open, defendant did not transmit the offer to its insured for his consent.  Defendant also repeatedly failed to send… Read More

The TCPA (47 USC 227(b)(1)(A)) and the FCC's implementing regulation (47 CFR 64.1200(a)(1)) both prohibit any calls made by an autodialler (or with a pre-recorded message) to a cellphone regardless of the content of the call or message--unless it is an emergency call or one made with the recipient's express consent.  The FCC's regulation imposes additional restrictions on telemarketing calls… Read More

This decision affirms a judgment against Monsanto for failing to warn of the toxic nature of Roundup.  It holds that the Federal Insecticide, Fungicide and Rodenticide Act (7 USC 136 et seq.) does not preempt state common law duty to warn and defective design products liability claims.  There was substantial evidence to support the jury's verdict of liability on those… Read More

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