Enforceability Of Arbitration Agreements In California
In 1998, the Federal Court of Appeals, which governs the State of California, issued its decision to Duffield v. Roberts- Stevenson Company (9. 1998) 144 F.3d 1182. The Duffield court ruled that the Civil Rights Act of 1991 prohibited the application of mandatory employment contracts to settle claims under Title VII of the Civil Rights Act of 1964 or state anti-discrimination laws equivalent to those of the California Fair Employment and Housing Act (“FEHA”). In Duffield, the case was a stockbroker who was attempting to charge government and federal discrimination claims against their employer as a result of allegations of sexual discrimination and harassment. The Civil Rights Act of 1991 states: where appropriate and where possible, the use of alternative means of dispute resolution, . . . . . . . .
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. . . Arbitration is encouraged to resolve disputes arising from federal statutes or provisions that are amended by that title. Despite this language, the court found the status congress`s intention to prohibit mandatory civil rights arbitration of employees. The 9th Circle was the only federal appels court to adopt such a strong attitude against the resolution of labour disputes. As a result, most legal experts concluded that arbitration agreements governing discrimination and related rights were null and void. In California, all contracts (including arbitration provisions) must be: this is only a small sample and many other disputes between an employee and an employer may be subject to a valid arbitration agreement. When considering whether labour dispute resolution should be required, employers should assess the benefits and risks of conciliation. The benefits of an arbitration procedure are generally as follows: for several years, employers have been concerned about the costs and disruptions of management due to employment rights and litigation.
As a result, many companies have implemented alternative dispute resolution systems, many of which include labour arbitration procedures. In these agreements, employers and employees agree to settle any labour-related disputes through binding arbitration, unlike a jury. The majority is of the view that the use of an arbitrator to resolve employment disputes would be quicker, less costly, private and, from the employer`s point of view, avoiding the possible judgment of the “leak” jury. The employer objected to the decision and the Court of Appeal set it aside. While the Court of Appeal found that the contract was a contract and that the determination of damages was unacceptable, the Court of Appeal held that the balance of the arbitration agreement should be applied. The California Supreme Court then allowed a review. The California Supreme Court has held that claims filed under the California FEHA are in fact arbiters if “arbitration allows an employee to justify his or her legal rights.” In conclusion, the Tribunal found that the compromise clause had to meet certain minimum requirements for a labour arbitration agreement to be enforceable (particularly with respect to discriminatory claims under the FEHA). These include: (1) not limiting otherwise available remedies; (2) a provision for “appropriate discovery”; 3. the duty of the arbitrator to “make a written arbitration decision which, even briefly, will reveal the essential findings and conclusions on which the arbitration award is based”; and (4) the prohibition of any language requiring the worker to bear any kind of costs that the worker would not have to bear if he took legal action (i.e. arbitration compensation).
The court also considered the ruthless and