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Friday, April 12, 2013

Baltazar v. Forever 21: Supreme Court Issues Grant and Hold of Arbitration Decision

In Baltazar v. Forever 21, Inc. (12/20/12) 212 Cal.App.4th 221 (discussed here), an individual discrimination, harassment, and constructive discharge action, the trial court denied the defendants' motion to compel arbitration, and the Court of Appeal reversed, holding:
  • Unconscionability analysis survives Concepcion. 
  • The defendant did not offer evidence to show that the agreement evidenced "a transaction involving commerce," so the California Arbitration Act (CAA) applied, rather than the Federal Arbitration Act (FAA). 
  • Because the CAA allows parties to seek provisional remedies in court, arbitration agreement allowing parties to do so was not substantively unconscionable. 
On March 20, the California Supreme Court granted review and deferred briefing pending Wisdom v. Accentcare (discussed here). 

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