No Easy Answer On Class Arbitration, Calif. High Court Says

Law360, Los Angeles (July 28, 2016, 10:40 PM EDT) -- The California Supreme Court on Thursday held that trial courts must decide on a case-by-case basis whether they, or an arbitrator, should decide if an arbitration agreement permits class claims, affirming the revival of a Los Angeles Toyota dealership employee’s discrimination class action.

The court’s seven justices ruled 4-3 to affirm a California Court of Appeals decision reviving Manhattan Beach Toyota employee Timothy Sandquist’s putative class action against the dealership’s owner, Lebo Automotive Inc. Justice Kathryn Werdegar, writing for the majority, said that there is no “universal one-size-fits-all rule” that can be applied to say whether a court, or an arbitrator,...

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