Perspective
Mar. 22, 2011
Enforcement of Pre-Dispute Reference Agreements Struggles Under California Law
Parties who prefer to mediate their disputes rather than face a jury trial should be consistent in their use of pre-dispute reference clauses. By Harold J. Lee of Buchalter Nemer.
On Feb. 10, in Tarrant Bell Property LLC et al. v. The Superior Court of Alameda County, 2011 DJDAR 2283, the state Supreme Court affirmed that a trial court has the discretion to refuse to enforce a pre-dispute agreement under Code of Civil Procedure Section 638.
The decision is yet another potentially troubling one to many companies and commercial lenders who wish to avoid jury trials in resolving their disputes. In the afterm...
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