ANNUAL UPDATE OF ALTERNATIVE DISPUTE RESOLUTION CASES AND LEGISLATION

Written by Paul J. Dubow^*

The matters discussed below include cases issued in 2023 by California courts and federal courts that have jurisdiction over California that may be of interest to attorneys drafting contracts containing arbitration or mediation clauses.

ALBERTO V. CAMBRIAN HOMECARE, 91 CAL. APP. 5TH 482

When plaintiff Alberto was hired by Cambrian, she signed an agreement to arbitrate. At the same time, she signed a confidentiality agreement where she agreed to preserve Cambrian’s trade secrets and if she failed to do so, she agreed to permit Cambrian to file an injunction without the need to file a bond or show irreparable harm. The confidentiality agreement also prohibited Alberto from discussing salary with other employees. Subsequently, she filed a lawsuit against Cambrian alleging that it had violated the wage and hour laws. Cambrian’s motion to compel arbitration was denied by the trial court. It held that the confidentiality agreement was part of the agreement to arbitrate and that the aforementioned provisions in the confidentiality agreement were unconscionable. Cambrian appealed, arguing that even if the provisions were unconscionable. they were not part of the agreement to arbitrate.