Litigation & Arbitration
Oct. 11, 2023
Request to arbitrate no longer guarantees stay in court proceedings
‘This is yet another example of the round-and-round between California and federal law. When one zigs, the other zags,” wrote Benjamin G. Shatz of Manatt, Phelps & Phillips LLP.
California courts will no longer automatically stay a lawsuit when a party files an appeal seeking arbitration under a law Gov. Gavin Newsom signed on Tuesday.
"Workers should have a level playing field with corporations in our justice system," said SB 365's author, Sen. Scott Wiener, D-San Francisco. "This bill does that by ending a loophole that allowed corporations to tie up even frivolous disputes in an endless process."
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