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California Supreme Court

Case Status

Decided

Docket Number

S218686

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Petition for review denied

July 23, 2014

U.S. Chamber asks California Supreme Court to review lower court's ruling which seeks to undermine policies under the Federal Arbitration Act ("FAA")

June 27, 2014

The U.S. Chamber asked the California Supreme Court to grant review and reverse the decision of the Second District in this case. The Chamber argues that the Second District’s interpretation of the arbitration agreement will frustrate the intent of contracting parties and undermine the strong policies under the Federal Arbitration Act (“FAA”) that favor the enforcement of arbitration agreements. The brief points out that the decision conflicts with recent rulings in the Ninth Circuit, which reached opposite conclusion when interpreting the exact same contract. If the decision is not reversed, the faithful enforcement of parties’ agreements may depend on whether a case proceeds in state or federal court, which would deprive the contracting parties of the stability and predictability that is essential for a well-functioning economy.

Donald M. Falk of Mayer Brown LLP represented the U.S. Chamber as co-counsel to the U.S. Chamber Litigation Center in this case.

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