In a long-anticipated ruling, on June 23, 2014, the California Supreme Court held in Iskanian v. CLS Transportation Los Angeles, LLC., that mandatory class action waivers in pre-employment arbitration agreements are enforceable, following the United States Supreme Court’s landmark decision AT&T v. Concepcion, 131 S. Ct. 1740 (U.S. 2011). However, despite this victory for employers with arbitration programs, the Iskanian court also held that representative claims brought under California’s Private Attorneys General Act (PAGA) may not be waived in such agreements, with the net result mixed for employers and employees.(more…)
California Supreme Court Weighs in on the Unconscionability Defense to Arbitration Agreements in light of the Arbitration-favorable US Supreme Court decision in AT&T v. Concepcion.
In Sonic-Calabasas v. Moreno (Sonic II), the California Supreme Court recently clarified the scope of the state law doctrine of unconscionability as applied to arbitration agreements in light of the United States Supreme Court’s decision in AT&T v. Concepcion, 131 S. Ct. 1740 (U.S. 2011). Sonic II is the Court’s first attempt at reconciling California law with Concepcion, which clarified the limitations that the Federal Arbitration Act imposes on a state’s capacity to enforce its rules of unconscionability on parties to arbitration agreements. Sonic II is the first of four cases that the California high court is scheduled to consider this year that will decide how California courts will navigate the new legal framework for arbitration agreements created by Concepcion.(more…)