Tuesday, November 29, 2005
Contractual pre-dispute waivers of jury trials are not effective in California, according to a recent ruling by the state supreme court in Grafton Partners, L.P. v PriceWaterHouseCoopers L.L.P. (August 5, 2005).
Parties can agree in advance to arbitration, said the court, but they cannot agree in advance to have their case tried by a judge instead of a jury. What is striking is that this is not a consumer case, but one between sophisticated business entities. Christopher R. Ball and John M. Grenfell of New York’s Pillsbury Winthrop offer a brief report on the case.