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Jul. 20, 2016

Paul W. Cane Jr.

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Paul Hastings LLP

Paul W. Cane Jr.

Cane says he was drawn to appellate work "because it helps establish the rules of the road, not only for the parties involved in one particular case but for everyone else that follows."

With a pair of precedent-setting U.S. Supreme Court victories to his credit, as well as other wins in the California Supreme Court and other state and federal appellate courts, Cane has helped establish new rules of the road in matters ranging from employment discrimination to class action lawsuits.

In one of his most recent cases, the state Supreme Court in March upheld the arbitration clause in employment contracts used by his client, fashion chain Forever 21 Inc.

The decision's immediate impact means that former Forever 21 worker Maribel Baltazar must bring her claims of harassment, race and gender discrimination, and retaliation to an arbitrator instead of suing the company in court. Baltazar v. Forever 21 Inc. et al., S208345 (Cal. Sup. Ct., March 28, 2016)

Over the long term, however, the case could provide guidance for the lower courts, attorneys and employers on how to craft arbitration agreements that can withstand employee lawsuits, whether from an individual or involving a class action claim.

"The interplay between arbitration and class action lawsuits is going to be one of the hot issues in employment law over the next few years," Cane said. "When you agree to an arbitration agreement, you can't bring or participate in a class action suit, so the plaintiffs lawyers try to challenge the validity of the arbitration agreements."

In the Forever 21 case, Baltazar said she had objected to the arbitration clause at the time of her hiring, since it was the only way of getting the job. But the court ruled that she willingly signed it without being "lied to, placed under duress or otherwise manipulated into signing."

Cane said that the ruling suggests that as long as arbitration agreements don't involve trickery or deception, they should be able to withstand challenge. But he adds that the topic is so controversial that it will likely require a ruling from the U.S. Supreme Court.

"This is one big issue where you wonder whether [Justice Antonin] Scalia's death might have an impact on the decision, depending on who is picked to replace him," he said.

— Dean Calbreath

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