California Court of Appeal Declines to Order Parties to Arbitration Where Employees’ Dispute Fell Outside Scope of Arbitration Agreement

In yet another appellate decision precluding arbitration of employment claims, Elijahjuan v. Superior Ct., CaseNo. BC441598 (Filed Oct. 17, 2012), the California Court of Appeal reiterated that while “California law, like federal law, favors enforcement of valid arbitration agreements,” the Court will not order parties to arbitration where the underlying dispute is not expressly encompassed by the parties’ Arbitration Agreement.  (Slip Op. at 4.) In this case,

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California Court of Appeal Denies Employer’s Motion to Compel Arbitration Where Employee Did Not Sign Arbitration Agreement (Although She Led Her Employer to Believe She Did)

In Gorlach v. The Sports Club Co., Case No. B233672 (2nd Dist. Cal. Ct. App. Oct. 16, 2012), the California Court of Appeal denied the defendants’ motion to compel arbitration, finding that there was no evidence that the plaintiff agreed to be bound by the company’s arbitration provision. In this case, the plaintiff, Susan Gorlach, had worked for Sports Club as the company’s human resources director. 

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