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Wednesday, February 20, 2013

Franco v. Arakelian Enterprises: Supreme Court Issues Another Iskanian Grant-and-Hold

In Franco v. Arakelian Enterprises, Inc. (11/26/12) (discussed here), the Court of Appeal affirmed a trial court order denying individual arbitration of a putative wage and hour class action, holding:
Gentry v. Superior Court (2007) 42 Cal.4th 443, remains good law after AT&T Mobility LLC v. Concepcion (2011) 563 U.S. ___, and the class action waiver at issue was invalid.  
Because the class action waiver was invalid, Stolt-Nielsen S.A. v. AnimalFeeds International Corp. (2010) 559 U.S. ___, required that the action remain in court, where plaintiff could pursue class certification. 
Not surprisingly, on February 13, 2013, the California Supreme Court granted review and held briefing pending its decision in Iskanian v. CLS Transportation Los Angeles, LLC (6/4/12) (discussed here), which includes the following issue: 
Did Concepcion impliedly overrule Gentry with respect to contractual class action waivers in the context of non-waivable labor law rights?
Franco v. Arakelian is Case No. S207760, and the Court's web page for it is here.  Iskanian is Case No. S204032, and the Court's web page for it is here.  

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