header image

[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather


 
Calendar
Today in
S.C.V. History
March 29
1928 - Little dam victim, thought unidentified & buried in SCV, actually ID'd & buried in Chatsworth [story]
Newhall Cowboys


Commentary by Carl Kanowsky, Esq.
| Friday, Jan 10, 2014
Carl Kanowsky, Esq.

Carl Kanowsky, Esq.

Over the past few years, there has been a big push by employers to have employees sign agreements stating that any dispute between them would go to an arbitrator rather than a judge and a jury.

Presumably, the logic behind the strategy is to avoid runaway jury verdicts. Some employers reason that going to a private arbitrator will 1) keep things private; 2) enhance the employer’s chance of winning (the idea being the arbitrator will be less emotional and more likely to follow the evidence rather than the employee’s “sob story”); 3) minimize the potential dollar loss; and 4) give the employer an automatic edge.

The “edge” is based on the fact that the arbitrator is, first and foremost, running a business.

The arbitrator wants to see return customers, which in this case is an employer. Therefore the arbitrator, as the argument goes, would be more likely to return an award favorable to the employer to generate repeat business.

California courts have issued opinions that have challenged this reasoning, making it more difficult for employers to enforce arbitration agreements.

Also, employers sometimes forget that forcing arbitration is not always a good thing.

For instance, the California Supreme Court ruled in Armendariz v. Foundation Health that if the employer insists on arbitration in a fight with a former employee who is claiming some type of discrimination, then the employer must pay all the expenses of the arbitration above about $500.

How expensive can arbitration be, you ask? Well, the National Arbitration Forum charges $2,000 to start, plus the arbitrator’s hourly fees.

Judicial Arbitration and Mediation Services requires a retainer fee of nearly $5,500, plus the arbitrator’s hourly fees. Arbitrators’ hourly rates start at $400 and go up from there. The result is, arbitrations can cost employers from $20,000 to more than $100,000 in arbitration fees alone — not counting what the employer pays its attorneys.

Then, even if the employer, knowing the extra expense of arbitration, decides to require arbitration anyway, there is no guarantee the courts will allow the arbitration process to take place.

Recently, an appellate court in Trivedi v. Curexo slammed the door in one employer’s face. In that case, Trivedi, who had been Curexo’s CEO, got fired. He sued Curexo for age, race, color and national-origin discrimination.

Curexo tried to get the lawsuit sent to arbitration. Trivedi resisted that effort, telling the court that the arbitration clause in his employment contract was “unconscionable.”

Both the trial court and an appellate court agreed, saying the case had to be tried before a jury rather than handled in arbitration. Thus, Curexo spent thousands of dollars preparing the employment contract, and then thousands more trying to enforce it, only to wind up back in court. The entire battle between itself and Trivedi was fully laid out in a court decision open to the public.

Finally, assume the employer successfully forces the case to be heard in arbitration and not a court. It faces the prospect that if the arbitrator ignores the law and decides against the employer, the employer cannot appeal the decision.

There are only very limited bases to challenge an arbitrator’s award – fraud, misconduct, failure to disclose a disqualifying relationship, and exceeding powers. As you can see, the list does not include that the arbitrator got the law or the facts wrong.

So, going into arbitration can be a real roll of the dice. An employer should consider carefully before insisting that its employees forgo court and go to arbitration.

 

Carl Kanowsky of Kanowsky & Associates is an attorney in the Santa Clarita Valley. He may be reached by email at cjk@kanowskylaw.com. Nothing contained herein shall be or is intended to be construed as providing legal advice.

 

 

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


Opinion Section Policy
All opinions and ideas are welcome. Factually inaccurate, libelous, defamatory, profane or hateful statements are not. Your words must be your own. All commentary is subject to editing for legibility. There is no length limit, but the shorter, the better the odds of people reading it. "Local" SCV-related topics are preferred. Send commentary to: LETTERS (at) SCVNEWS.COM. Author's full name, community name, phone number and e-mail address are required. Phone numbers and e-mail addresses are not published except at author's request. Acknowledgment of submission does not guarantee publication.
Read More From...
RECENT COMMENTARY
Wednesday, Mar 27, 2024
Remo, Inc. is is the world's leading manufacturer and developer of synthetic drumheads and shells. They’ve been in business for 60 years
Tuesday, Mar 26, 2024
Springtime in Santa Clarita brings not only vibrant blooms and opportunities to embrace the outdoors with warmer weather, but also an array of free, family-friendly events and this Saturday is no exception.
Thursday, Mar 21, 2024
Did you know that each year, Main Street in Old Town Newhall undergoes countless makeovers for different events, such as Light Up Main Street and the Fourth of July Parade?
Thursday, Mar 21, 2024
Los Angeles County Supervisor Kathryn Barger, whose Fifth District includes the Santa Clarita Valley, issued the following statement Thursday in response to an announcement by Federal Communications Commission Chairwoman Jessica Rosenworcel of a proposal to change how calls to the 9-8-8 Suicide and Crisis Lifeline are routed.
Monday, Mar 18, 2024
Unlike our children who enjoy a week-long spring break, we adults no longer have that luxury.
Friday, Mar 15, 2024

Latest Additions to SCVNews.com
1928 - Little dam victim, thought unidentified & buried in SCV, actually ID'd & buried in Chatsworth [story]
Newhall Cowboys
Los Angeles County Public Works is updating the Los Angeles County Bicycle Master Plan.
April 16:  County Bicycle Master Plan Virtual Community Meeting
College of the Canyons mens golf got back on track during its return to conference play on Monday, carding a five-man score of 370 to top the eight-team field at Brookside Golf Course and maintain its unblemished conference mark.
Cougars Win Again, Keep Conference Streak
Los Angeles County Treasurer and Tax Collector, reminds property owners that the second installment of the 2023-24 Annual Secured Property Taxes becomes  delinquent if not received by 5 p.m. Pacific Time or United States Postal Service postmarked on or before Wednesday, April 10, 2024.
County Treasurer Reminds Property Owners of April 10 Due Date
Local nonprofit Fostering Youth Independence is seeking “Allies” to support Santa Clarita youth who are aging out of the L.A. County foster care system.
April 16: FYI Seeks Volunteers To Pair With Local Foster Youth
The Los Angeles County Department of Public Health today unveiled the latest L.A. County Health Survey, which gathers vital data on health behaviors, conditions, neighborhood settings, and the needs of L.A .County residents, informing future public health policies and programs.
Public Health Unveils the 2023 L.A. County Health Survey Findings
Due to the projected rain forecast, Eggstravaganza will now be held indoors at the Canyon Country Community Center beginning promptly at 10 a.m. on March 30.
March 30: Eggstravaganza Now Being Held Indoors at Canyon Country Community Center
To support the mental health of California's young people, the California Department of Public Health awarded $25 million to 28 tribal and community-based organizations across the state.
California Announces $25 Million in Awards for Youth Mental Health
The College of the Canyons Athletic Department will host a dedication ceremony to unveil the Michele Jenkins Softball Team Room in honor of the longtime board member and ardent softball program supporter’s nearly 40 years of service to the district.
April 16: COC to Host Michele Jenkins Team Room Dedication Ceremony
PFLAG Santa Clarita has announced the establishment of the Peggy and Jeff Stabile PFLAG SCV Scholarship. The scholarship will provide financial assistance to LGBTQIA+ students pursuing higher education and committed to advocating for LGBTQIA+ rights and promoting diversity and inclusion.
PFLAG SCV Announces Stabile PFLAG Scholarship
1934 - Bouquet Canyon Reservoir, replacement for ill-fated St. Francis Dam & reservoir, begins to fill with water [story]
Bouquet Reservoir
The California Department of Public Health launched the “Never a Bother” campaign, a youth suicide prevention public awareness and outreach campaign for youth, young adults, and their parents, caregivers, and allies.
California Launches New Youth Suicide Prevention Campaign
The Santa Clarita Master Chorale invites the community to "Let the Sunshine In," a delightful evening of food, wine and song at the annual Cabaret & Cabernet fundraising benefit.
April 20: Santa Clarita Master Chorale’s Cabaret, Cabernet Fundraiser
The Los Angeles County Department of Public Health cautions residents who are planning to visit the below Los Angeles County beaches to avoid swimming, surfing, and playing in ocean waters:
March 27 Ocean Water Warning
As an integral ingredient necessary to help the Santa Clarita Valley to flourish, feedback from the business community is the secret sauce for achieving great things.
SCVEDC Asks For the Business Community’s Opinion on Santa Clarita
Raise your heart rate while raising funds for the Santa Clarita Sister Cities Dollars-for-Desks campaign to provide school desks for students in Sariaya, Santa Clarita's Sister City in the Philippines.
April 13: Sister Cities Zumba-thon Fundraiser
Remo, Inc. is is the world's leading manufacturer and developer of synthetic drumheads and shells. They’ve been in business for 60 years
SCVEDC Company Spotlight: Drumming Up Big Business with Remo, Inc.
California State Assemblywoman Pilar Schiavo (D-Chatsworth) and Assemblyman James Ramos (D-Highland) have introduced AB 3074 the "School or athletic team names: California Racial Mascots Act."
Schiavo Introduces Bill to Prohibit ‘Derogatory’ School Mascot Names
Los Angeles County’s Justice, Care and Opportunities Department  in collaboration with Local Initiatives Support Corporation Los Angeles is proud to announce the 2nd Annual Pitch Competition for the cohorts of JCOD's Incubation Academy.
March 28: JCOD Incubation Academy Helps Grassroots Non-Profits For the Second Year
Children’s Bureau is seeking foster families and now offers two virtual ways for individuals and/or couples to learn how to help children in foster care while reunifying with birth families or how to provide legal permanency by adoption.
April 18: Children’s Bureau Hosts Virtual Orientation
The Sunburst track was constructed in 1887 by the Southern Pacific Railroad and was a part of the main line running between San Francisco and Los Angeles.
Enjoy Spring With a Ride On The Sunburst Track
California State Superintendent of Public Instruction Tony Thurmond hosted a Personal Finance Summit today where he announced his support for Assembly Bill 2927 (McCarty), legislation that would require a personal finance education course for California high school graduation.
State Superintendent Announces Support for Personal Finance Graduation Requirement
1847 - Probable birth date of Pico Canyon oil driller Charles Alexander Mentry [story]
C.A. Mentry
SCVNews.com