ADR Case Updates
Corporate Client May Designate Attorney to Sign Settlement Stipulation, 01/04/2012
In Provost v. Regents of the University of California (2011) 201 Cal. App. 4th 1289, Plaintiff was employed as an anesthesiologist for Defendant. After his termination, he filed a retaliation suit claiming he was wrongfully discharged after reporting illegal conduct. The parties participated in a successful mediation that ended with a signed settlement stipulation. However, later claiming irregularities in the mediation process, Plaintiff refused to sign a final settlement agreement.
Defendant brought a motion to enforce the settlement stipulation that was granted by the trial court. Plaintiff appealed on the grounds that Defendant did not properly execute the stipulation for settlement because it was signed by its in-house counsel and not a party.
Affirmed. Code of Civil Procedure Section 664.6 provides that a written settlement agreement may be enforced if it is signed by the parties. Further, "parties" means the litigants themselves, and does not include the attorneys of record, unless the attorney is specifically authorized to settle and compromise a claim. Here, the in-house attorney was an employee of the Defendant and authorized corporate representative to execute the settlement on Defendant's behalf. As such, her designation and action was proper. She signed the settlement as the designated employee of the corporate party, and not as an attorney-agent.
IN ADDITION, THE FOLLOWING CASES HOLD:
Promenade At Playa Vista Homeowners Association v. Western Pacific Housing, Inc., (2011) 200 Cal. App. 4th 849 (Developer that no longer had any ownership interest in complex lacks standing to enforce arbitration provision in CC&R's);
Sky Sports, Inc., v. Superior Court (Hogan), (2011) 201 Cal. App. 4th 1363 (In wage and hour case, right to compel arbitration is not waived where party was unable to file motion to compel arbitration prior to class certification);
Janopaul + Block Companies, LLC, v. Superior Court (St. Paul Fire and Marine Insurance Company) (2011) 200 Cal. App. 4th 1239 (Issues concerning insurer's duty to defend and bad faith must be decided in trial court prior to arbitration of dispute over attorney fees);
KPMG LLP v. Cocchi, ___ U.S. ___, 132 S. Ct. 23 (2011) (Court must compel arbitration of claims subject to Federal Arbitration Act, even where complaint also includes nonarbitrable causes of action);
Service Employee's International Union Local 1021 v. San Joaquin County, (2011) 202 Cal. App. 4th 449 (Former employee's retirement during pendency of arbitration regarding his termination does not divest arbitrator of contractually granted power to arbitrate dispute pursuant to agreement between Union and County);
Sanchez v. Valencia Holding Company, LLC, (2011) 135 Cal. Rptr. 3d 19 (Arbitration provision in car dealer contract was unconscionable where it involved surprise due to unequal bargaining power and contained harsh one-sided terms, regardless of validity of class action waiver);
Sacks v. Dietrich, 663 F. 3 1065 (Ninth Cir., 2011) (Arbitral immunity bars claims against arbitrators in securities arbitration, who disqualified party from representing client, where Plaintiff's claim arose out of decisional act);
Dzwonkowski v. Spinella, (2011) 200 Cal. App. 4th 930 (Motion for attorney fees that were incurred in arbitration of dispute over payment of fees in underlying probate matter was properly granted despite attorney's "of counsel" title);
Roberts v. El Cajon Motors, Inc., (2011), 200 Cal. App. 4th 832 (Trial court properly finds that car dealer waived right to compel arbitration of lemon law claim following five-month delay in filing motion to compel and failure to inform Plaintiff of intent); and
Smallwood v. Allied Van Lines, Inc., 660 F. 3d 1115 (Ninth Cir., 2011), (Foreign arbitration clause is unenforceable under Carmack Amendment where it contravenes mandate giving shipper right to select forum after dispute arises).
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