AutoNation Case Shows High Bar To Undo Arbitrator Awards

Law360, San Diego (January 29, 2015, 10:44 PM EST) -- The California Supreme Court held Thursday that an AutoNation Inc. employee fired during medical leave wasn't deprived of his rights because evidence in arbitration showed he violated a company policy by working elsewhere while on leave, a decision lawyers say ducks questions about employers' "honest belief" defense while reinforcing that judicial review of arbitration awards is extremely limited.

The state's high court ruled that although the arbitrator may have erred in adopting the employer's defense that a sales manager was justifiably fired based on an "honest belief" he was improperly working a second job while on medical leave under the California...

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