Appeals

California Court of Appeal holds arbitration clause in employment agreement unconscionable in light of breadth of clause, indefinite term of survival clause, and lack of mutuality as to third party beneficiaries

Jul 03 2024

In Cook v. University of Southern California Cal. App. 5th 312, 340 (2024), reh’g denied (June 13, 2024) the California Court of Appeal, Second Appellate District, held that the arbitration clause in an employment agreement between an employee, Pamela Cook, and an employer, the University of Southern California, was unconscionable. This decision could have an important impact on future attempts to compel arbitration based on arbitration clauses in pre-existing agreements.

California Court of Appeal Creates Split in State Authority, Holds Federal Arbitration Act Preempts Section 1281.97 of the California Arbitration Act

Jul 02 2024

In Hernandez v. Sohnen Enterprises Inc., 102 Cal. App. 5th 222 (2024), reh’g denied (June 3, 2024), review filed (June 28, 2024) the California Court of Appeal, Second Appellate Division, made several important findings regarding arbitration agreements. The court held that unless the parties’ arbitration agreement expressly selected California’s arbitration provisions, the Federal Arbitration Act (“FAA”) preempts California Civil Procedure section 1281.97 (part of the California Arbitration Act (“CAA”)). The Court also found that a superior court order allowing a party to withdraw from arbitration per section 1281.97 is immediately appealable as it is the functional equivalent of an order denying arbitration.

U.S. Supreme Court Success in Binday v. United States

May 24 2023

Since 2015, soon after Michael Binday’s conviction was affirmed on appeal by the Second Circuit, we began what has become an eight-year effort to overturn an overbroad and constitutionally vague construction of the federal fraud statutes that labelled a complaining witness’ desire for information (called its “right to control its property”) as property itself. We […]