Labor/Employment,
Civil Litigation,
California Courts of Appeal
Jul. 20, 2020
Appellate court blocks third party discovery in arbitration
The decision may discourage “frivolous litigation ... or it may encourage more companies to go back into court, which would be a good thing,” said Harmeet K. Dhillon of the Dhillon Law Group, representing the defendant in the underlying case.
A state appellate ruling vacated an arbitrator's order allowing third party discovery in a dispute between a company and its former employee, concluding pretrial discovery is not permitted under state or federal law.
The Thursday ruling, by a 6th District Court of Appeal panel, reversed two Santa Clara County judges who agreed with the arbitrator, and raised the possibility that companies might choose to rewrite arbitration agreemen...
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