United States Supreme Court Vacates California Supreme Court Ruling On Arbitration Agreements

On March 3, 2011, we reported on a California Supreme Court case, Sonic-Calabasas A, Inc. v. Moreno, click here to read. In Sonic-Calabasas A, the California Supreme Court held that a provision of a mandatory employment arbitration agreement requiring waiver of the right to a formal Berman hearing before the Labor Commissioner was both “contrary to public policy and unconscionable” and that California courts would not enforce such an agreement. On October 31, 2011, the United States Supreme Court vacated that ruling and ordered the California Supreme Court to reconsider its decision in light of AT&T Mobility v. Concepcion, 563 U.S. ___ (2011), click here to read.

By: Fred Sanderson

Fred Sanderson is a partner in Seyfarth’s Sacremento office. If you would like further information, please contact your Seyfarth Shaw LLP attorney, or Fred Sanderson at asanderson@seyfarth.com.