Saturday, November 8, 2014

The Decider Decides

Network Capital Funding Corp. v. Papke, No. G049172 (D4d3 Oct. 9, 2014)

The court rules that an arbitration agreement between a company and one of its employees did not clearly leave it up to the arbitrator to decide whether class arbitration would be permissible. The issue was thus a question of substantive arbitrability for the court to decide. Moreover, the trial court did not err in deciding that the agreement did not, in fact, permit class arbitration. 


**Note: The Supreme Court granted review on January 14, 2015, likely to resolve the split of authority on who decides the issue of the permissibility of class-wide arbitration that was addressed in Sandquist, in which review had been granted two months prior.

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