California Courts of Appeal Continue to Declare Independence From SCOTUS in Arbitration Matters

The California courts’ post-Concepcion Kabuki theater involving binding arbitration requirements in consumer and employment contracts continues.  CBL’s post on the course of events up to mid-July is here.

First, we had Brown v. Ralph’s Grocery Company (2011) ___ Cal.App.4^th ___ (2^nd Dist., B222689).  In Brown, an employment case, the Court of Appeal held that Concepcion only applies to class action waivers in arbitration agreements, not to “representative action waivers,” which are void as against public policy.  Last week, the Cal Supremes denied a hearing, so Brown is the law throughout California at least until the US Supremes get their talons into it.

Now we have Sanchez v. Valencia Holding Company, LLC (2011) ___Cal.App.4^th___ (2^nd Dist., B228027) a consumer case.  The short version:  an arbitration provision in an automobile dealership Retail Installment Sales Contract was held invalid as procedurally and substantively unconscionable.  The long version is after the jump.