In Garcia v. Haralambos Beverage Co., the California Court of Appeal embraced the adage “time kills all deals” to conclude that an employer waived its right to arbitrate the wage-hour claims at issue in the case by, among other things, delaying two years to seek arbitration as a last resort and waiting to locate the plaintiffs’ signed arbitration agreements. By waiving its right to arbitrate, the employer also lost its ability to strike class claims as a result.
Read moreCalifornia Arbitration Act – Importance of Arbitration
Any arbitration that takes place in California must comply with the California Arbitration Act.The California Arbitration Act is a piece of legislation that regulates private arbitration in the state of California. This law is intended to create and streamline the process of arbitration in the state. Certain provisions of the law have caused controversy, and there is currently a lawsuit pending to determine whether provisions involving mandatory arbitration agreements should be honored, but the Act as a whole has been instrumental in establishing the importance of arbitration in California and has made the state a safe haven for those hoping to use arbitration to resolve disputes.
Read moreCalifornia Appeals Court Rules on Nursing Home Arbitration Agreement
Many nursing homes ask residents or their agents to sign arbitration agreements. These agreements state that any disputes between the resident and the nursing home must be handled through the arbitration process. Nursing homes use these types of agreements because arbitration generally favors the companies instead of the plaintiffs, and the homes can avoid the publicity of a trial when arbitration is compelled. However, as the case of Lopez v. Bartlett Care Center, LLC, Cal. Ct. App. No. G056427 shows, some arbitration agreements are unenforceable and may be thrown out by the court, leaving the parties to litigate through the court process.
Read moreAirbnb Looks To Arbitrate COVID-19 Repayment Dispute
Law360 (January 22, 2021, 6:37 PM EST) -- Airbnb has asked a California federal court to compel arbitration in a proposed class action challenging the home-sharing platform's purported failure to properly repay hosts and guests for canceled bookings during the COVID-19 pandemic, saying the dispute's claims must be arbitrated under an agreement the parties signed.
Read more340B Administrative Dispute Resolution Goes Live Amid a Flurry of 340B Litigation
The U.S. Department of Health and Human’s Services (HHS) Health Resources and Services Administration’s (HRSA) long-awaited administrative dispute resolution (ADR) final rule went into effect last week, on January 13, 2021. The ADR regulations, which have lingered in HHS since 2010, arrive amid increasing tensions and a flood of 340B-related litigation between covered entities, manufacturers, and HHS.
Read moreCalifornia appellate court concludes lender’s arbitration provision unenforceable
On January 11, the Court of Appeals of the State of California affirmed the denial of an auto lender’s motion to compel arbitration, concluding that the arbitration clause was invalid and unenforceable. According to the opinion, in May 2019, consumers filed a class action complaint alleging the lenders charged unconscionable interest rates in violation of California’s Unfair Competition Law (UCL) and Consumers Legal Remedies Act (CLRA). The company moved to compel arbitration, which the consumers opposed, arguing that the agreement was “procedurally and substantively unconscionable,” and that the California Supreme Court decision in McGill v. Citibank, N.A. (covered by a Buckley Special Alert here, holding that a waiver of the plaintiff’s substantive right to seek public injunctive relief is not enforceable) applied. The trial court denied the motion to compel arbitration, concluding that the McGill rule applied and that the injunctive relief provision could not be severed from the rest of the arbitration agreement because severability did not apply to the class waiver provision.
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