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Wednesday, June 19, 2013

Compton v. Superior Court: California Supreme Court Issues Grant-and-Hold In Another Arbitration Case

In Compton v. Superior Court (American Management Services, LLC) (3/19/13) --- Cal.App.4th --- (discussed here), the Court of Appeal reversed a trial court order compelling individual arbitration in a putative wage and hour class action. The Court held that the arbitration agreement was unconscionable because it was unfairly one-sided: it required employees to arbitrate all claims; it imposed a one-year statute of limitations on employee claims, but did not impose the same period on employer claims for unfair competition and trade secret violations; and it gave the arbitrator discretion on attorney fees that would be mandatory in certain claims. The Court did not rely on the agreement's class action waiver for its finding of unconscionability.

I speculated that the California Supreme Court would grant review and hold pending its decision in Sanchez v. Valencia Holding Co., LLC (discussed here). The Court did exactly that on June 12, making me feel very smart indeed.

Now if I could just figure out how to get my kids to listen to me.  


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