Supreme court of the united states carmax auto superstores california, llc, et al. Additionally, as a result of the convoluted procedural history of this case, there is no present controversy between the parties as to whether the. A subsequent agreement between the parties, which contained no arbitration provision and which superseded a prior agreement which did contain an arbitration provision, may not be rescinded unilaterally in order to trigger the arbitration provision in the prior agreement. Schwartz and his firm have fought to prohibit discrimination, retaliation, and harassment, obtained reasonable accommodations for disabled employees, vindicated whistleblowers rights, and ensured that corporations pay workers all wages they are owed. On october 17, 20, the california supreme court revisited the enforceability of arbitration agreements in california. Supreme court summarily vacated the original 2011 sonic calabasas opinion sonic i1, the california supreme court issued its opinion on remand in sonic calabasas a, inc. California rule prohibiting waiver of berman hearings was preempted by the federal arbitration act. Moreno sonic i, in which the court had held as a brightline rule that an employer cannot require employees to waive their right to a berman. Supreme court oral arguments for june 4, 2019 california. The california supreme courts decision in sonic calabassas a, inc. Whether, in light of this courts decision in soniccalabasas a, inc. An advertising supplement to the orange county business.
Moreno sonic i, held that employers cannot require employees to waive the right to an administrative hearing a berman hearing before the california labor commissioner. In that 5 2 ruling, the california supreme court reversed its prior decision to strike down an arbitration agreement on the ground of faa preemption, but remanded the case. Supreme court amicus brief arguing that federal arbitration act prohibits courts from refusing to enforce arbitration agreements based on a concern for the vindication of state statutory rights. In that case, the high court confirmed its longstanding rule that arbitration clauses under the federal arbitration act faa. October 25, 20 the federal arbitration act faa preempts california law prohibiting the waiver of an administrative hearing before the california labor commissioner in an employment arbitration agreement, the california supreme court ruled in a 52 decision. Frank moreno is a former employee of soniccalabasas a, inc. Mar 21, 2011 1 comment on wage claims are not subject to mandatory arbitration it was close, but the california supreme court in soniccalabasas a, inc. On october 17, 20, the california supreme court issued its second decision in soniccalabasas v. Frank moreno is a former employee of sonic calabasas a, inc. Supreme court summarily vacated the original 2011 soniccalabasas opinion sonic i 1, the california supreme court issued its opinion on remand in soniccalabasas a, inc. On petition for a writ of certiorari to the california court of appeal. Supreme court of the united states amazon web services. Justice goodwin lius opinion for the majority persuasively argued that the concepcion court intended the fundamental attributes of arbitration to include low costs, efficiency, speed of dispute resolution, and expert adjudicators. On june 21, the california supreme court vacated the submission on soniccalabasas a, inc.
In a longawaited and lengthy 104page decision, the california supreme court in soniccalabasas, inc. Appellate reports and cases in brief plaintiff magazine. A berman hearing is conducted by a deputy labor commissioner. Moreno moreno pursuant to the courts order of june 21, 20, requesting briefing from moreno and his former employer. Here is the first report on yesterdays argument in n soniccalabasas a, inc. Recent developments regarding enforceability of binding. The parties were invited to file further supplemental briefs discussing the effect, if any, of soniccalabasas on the issue. The parties were invited to file further supplemental briefs discussing the effect, if any, of sonic calabasas on the issue. Jun 04, 2019 this case presents the following issues. Supreme court precedent and the federal arbitration act faa preclude. The underlying case was brought by frank moreno, an employee of sonic calabasas a, inc. In the present case, we hold that concepcion requires enforcement of the class waiver but does not limit the unconscionability rules applicable to other provisions of the arbitration agreement. California courts continue to resist federal policy favoring. The california supreme court heard oral argument in soniccalabasas, inc.
The latest word from the california supreme court on enforcing arbitration agreements. Instead, cobbling together elements of unconscionability caselaw with labor statutes, sonic ii replaced the categorical rule with a. In irs revenue ruling 2017, they adopted a state of celebration rule rather than a state of residence rule. Moreno sonic ii 2 the courts fivetotwo sonic ii majority opinion conceded that u. California courts continue to resist federal policy. Petitioners do not contend that this case presents the same unconscionability issue addressed in sonic ii, but instead argue broadly that any decision applying sonic iis unconscionabil. It was close, but the california supreme court in soniccalabasas a, inc. Moore street suite 2250 arlington, va 22209 703 6002067 attorney for amicus curiae retail litigation center, inc. On petition for a writ of certiorari to the california court of appeal respondents brief in opposition eric b. California supreme court recognizes concepcion requires.
Because the decision below is not final, this court lacks jurisdiction under 28 u. The agreement set forth a number of conditions of employment, including consent to drug testing and. Wage claims are not subject to mandatory arbitration. Continuing to push back against the federal policy in favor of arbitration contained in the federal arbitration act, the california supreme court has handed down its longawaited decision in soniccalabasas, inc.
Moreno pdf in which our firm filed an amicus brief pdf contains a distinctly mixed message. The rlc joined others in filing a brief asking the u. Supreme courts recent decision in american express co. An employee who has a wage claim against his or her employer, but is subject to an arbitration agreement, can go first through.
Moreno, the states highest court categorically prohibited the. The court released its decision soniccalabasas inc. Justice goodwin lius opinion for the majority persuasively argued that the concepcion court intended the fundamental attributes of arbitration to include low costs, efficiency, speed of dispute resolution, and. Supreme court vacated the sonic i ruling, instructing the california supreme court to reconsider its decision in light of. Soniccalabasas a binding arbitration agreement compels. Moreno sonic ii has retreated from its earlier holding in soniccalabasas a, inc. Such waivers may still be held invalid if found to be unconscionable. Moreno sonic ii presents a mixed bag for employers. As expected following the recent decision by the supreme court of the united states interpreting the federal arbitration act faa, the california supreme court struck down its own rule on arbitration agreements. Arbitration california peculiarities employment law blog. Moreno sonic i, in which the court had held as a brightline rule that an employer cannot require employees to waive their right to. The first of these decisions, handed down on october 17 in soniccalabasas a, inc. Oct 22, 20 in 2011, the california supreme court, in sonic calabasas a, inc.
After a decision by the court of appeal, second appellate district, division four, case no. Sonic, which owns and operates an automobile dealership. Moreno has the potential to eliminate a powerful tool used by employers to avoid administrative hearings before the california department of labor, division of labor standards enforcement dlse. Bryan schwartz law is an oakland, californiabased law firm dedicated to helping employees protect their rights in the workplace. In sonic i, the court ruled that an arbitration agreements waiver of an administrative hearing on wage claims was void and unenforceable. Moreno and ordered that the parties file supplemental briefs to address the u. On petition for a writ of certiorari to the california court of appeal brief amici curiae of the equal employment advisory council, chamber of commerce of the. Department of the treasury opined as to the circumstances under which a legally married samesex couple must be recognized as a married couple for federal tax purposes. As a condition of his employment with sonic, moreno signed a document entitled applicant.