ISKANIAN V. CLS TRANSPORTATION
Court: Supreme Court of California
I. Did AT&T Mobility LLC v. Concepcion (2011) 563 U.S. [131 S. Ct. 1740, 179 L.Ed.2d 742] impliedly overrule Gentry v. Superior Court (2007) 42 Cal.4th 443 with respect to contractual class action waivers in the context of non-waivable labor law rights?
II. Does the high court's decision permit arbitration agreements to override the statutory right to bring representative claims under the Labor Code Private Attorneys General Act of 2004 (Lab. Code, ? 2698 et seq.)?
III. Did defendant waive its right to compel arbitration?
The RLC urged the Supreme Court of California to recognize U.S. Supreme Court precedent for enforcing valid arbitration agreements according to their terms in an effort to end expensive and unproductive litigation.
The California Supreme Court ruled that, in light of ATT Mobility v. Conception, arbitration agreements with class action waivers are enforceable, with the exception of arbitration agreements requiring an employee to give up the right to bring an action under the Labor Code Private Attorneys General Act (PAGA). The Court also recognized that the Federal Arbitration Act preempts a state law that prohibits waiver of PAGA claims in an employment contract.
Procedural History and Case Documents:
- Oral argument conducted April 2014
- Supreme Court of California's Decision issued June 2014