Litigation & Arbitration
Dec. 16, 2024
Burden lifted in arbitration waiver cases
The California Supreme Court's decision in Quach v. California Commerce Club (2024) eliminated the decades-old arbitration-specific burden requiring proof of prejudice for waiver, aligning arbitration agreements with standard contract principles and placing the focus solely on whether the party seeking to compel arbitration knowingly and intentionally relinquished their right.
For decades, civil litigants in California courts confronted motions to compel arbitration filed months, sometimes years after litigation had commenced, discovery was well underway, motions were heard, and more. Often, despite the time and expense of litigating incurred, such motions were granted. They were granted based on a legal fiction: a supposed policy favoring arbitration over litigation which gave rise to a judicially created arbitration-specific burden falling...
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