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California Supreme Court,
Litigation & Arbitration

Aug. 2, 2024

California Supreme Court says goodbye to Saint Agnes: Prejudice no longer required to waive arbitration

The California Supreme Court has ruled that a party cannot invoke the right to arbitrate if they have waived it, even if the other party was not prejudiced. This ruling overturns a previous decision that required a showing of prejudice to find waiver under the California Arbitration Act.

Daniel D. McMillan

Partner, Jones Day (Los Angeles)

Co-Leader of the Jones Day Global Construction Practice with a focus on Construction Domestic and International Arbitrations

Email: ddmcmillan@jonesday.com

Loyola Law School; Los Angeles CA

Dan's practice focuses on complex commercial, business, and construction litigation. As co-chair of the Firm's global construction practice, he represents owners, design professionals, and contractors in large construction disputes and in negotiating and drafting the full panoply of contracts for large projects.

Michael S. McCauley

Partner, Jones Day (Los Angeles)

Represents clients in complex construction disputes, including at trial and in arbitrations

Eric C. Tung

Partner, Jones Day (Los Angeles)

Appeals and Motions Practice in Commercial Litigation

Shutterstock

For decades, a court could not find that a party waived its right to arbitrate unless the failure to invoke that right "prejudiced" the other party. In the wake of last week's decision by the California Supreme Court in Quach v. California Commerce Club, Inc., S275121 (July 25, 2024), overruling St. Agnes Medical Center v. PacifiCare of California, 31 Cal. 4th 1187 (2003), that prejudice requirement is no more--a...

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