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CA Supreme Court Unenforceable Contract Terms

Venable LLP

California Supreme Court Finds Parties Cannot Contract Away Liability for Willful Injury

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On April 24, 2025, the California Supreme Court held that contract clauses that limit damages for injuries caused by willful tortious conduct are prohibited by Section 1668 of the California Civil Code....more

Holland & Knight LLP

California's New Nationwide Focus on Noncompetition Agreements

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For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more

Jackson Lewis P.C.

Update On Arbitration Agreements In California: U.S. Supreme Court Denies Certiorari In OTO, LLC v. Kho

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On June 8, 2020, the U.S. Supreme Court denied the employer’s petition for certiorari in OTO, LLC v. Kho. As background, in 2019, the California Supreme Court ruled in OTO that the arbitration agreement at issue was not...more

Fisher Phillips

Supreme Court’s Decision Not To Review California’s Arbitration Framework Means We Have A Roadmap For Compliance

Fisher Phillips on

The U.S. Supreme Court just did something that was more than just a bit out of character—it rejected the opportunity to find that California had once again overstepped its bounds by creating judicial rules disfavoring...more

Fisher Phillips

California Supreme Court Provides Valuable Blueprint For Your Arbitration Agreement Strategy

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The California Supreme Court recently handed down an intriguing decision which casts doubt on – and in some cases even condemns – some of the most common practices used by employers in both drafting and presenting arbitration...more

Hahn Loeser & Parks LLP

AMN Healthcare’s impact on the enforceability of non-solicitation provisions in California raises two new unanswered questions

California Employee mobility and the right to compete are sacrosanct in California, and have been since its Legislature enacted section 16600 of the California Business and Professions Code, which voids “every contract by...more

McManis Faulkner

Is California’s McGill Rule Still Good Law?

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On June 28, 2019, the Ninth Circuit held in three separate cases that the Federal Arbitration Act (FAA) does not preempt the California Supreme Court’s holding in McGill v. Citibank, N.A., 2 Cal.5th 945 (2017) — otherwise...more

Goulston & Storrs PC

Professional Liability Alert: California Supreme Court Decides that Ethical Violation Does Not Necessarily Result in Forfeiture of...

Goulston & Storrs PC on

In Sheppard Mullin Richter & Hampton, LLP v. J-M Manufacturing Company, Inc., No. S232946, August 30, 2018, the California Supreme Court found that Sheppard Mullin’s failure to disclose a known conflict with another current...more

Proskauer - Minding Your Business

Enforcing a Jury Trial Waiver in California: An Impossible Task?

It is not uncommon for parties to enter into agreements containing jury waiver provisions. However, enforcing such provisions in California courts may be a losing battle. California has a strong public policy in favor of the...more

Ervin Cohen & Jessup LLP

McGILL v. CITIBANK, N.A.

I have received a few questions from employers about the recent California Supreme Court decision in McGill v. Citibank, N.A.. The McGill case isn’t an employment law case, but rather deals with a consumer class action....more

Foley & Lardner LLP

Private Arbitration Agreements which Prohibit Public Injunctive Relief Violate Public Policy and are Unenforceable Under...

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In an April 5, 2017 unanimous opinion, the California Supreme Court (the “Court”) held that private arbitration agreements which prohibit public injunctive relief in any forum are contrary to California public policy and...more

Akin Gump Strauss Hauer & Feld LLP

McGill v. Citibank and Arbitration Agreements

On Thursday, April 7, 2017, in McGill v. Citibank, the California Supreme Court held that a pre-dispute arbitration agreement that waives the right to seek public injunctive relief is contrary to public policy and thus...more

Snell & Wilmer

Caution: Pay-When-Paid Clauses Are a Danger Zone in California

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Subcontracts often contain payment provisions to deal with the issue that a general contractor wants to be paid by the project owner before the general contractor has to pay its subcontractors. Two common subcontract...more

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