Sheppard

Sheppard v. Lightpost Museum Fund

Good Law
146 Cal. App. 4th 315·2006 Cal. App. LEXIS 2069·2007 Daily Journal DAR 84·52 Cal. Rptr. 3d 821·25 I.E.R. Cas. (BNA) 849
Court of Appeal of CaliforniaDecember 29, 2006H029574California6,548 words

Opinion

Concurring Opinion

McADAMS, J.

I agree with my colleagues that Code of Civil Procedure section 425.16 (section 425.16) does not authorize a motion to strike an arbitration claim pending in an arbitral forum under the circumstances present in the matter before us. I write separately in order to commend and comment upon the trial court’s attempt to resolve what was essentially an arbitration dispute.

In spite of the inartful pleadings and the unusual procedural posture of the case, the trial court recognized the essence of the dispute between the parties as a disagreement over proceeding to arbitration: The former employer viewed the matter as a breach of the employment contract and subject to arbitration under the terms of that agreement; the former employee claimed he was being forced into arbitration for engaging in constitutionally protected activity. Each side sought the protection of the court in support of its position concerning the former employer’s demand for arbitration.

Courts in California have long recognized that “California law, like federal law, favors enforcement of valid arbitration agreements.” (Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, 97 [ 99…

Lead Opinion

Mihara, J.

Defendants submitted an arbitration claim to an arbitration organization asserting that plaintiff had breached the parties’ contracts. Plaintiff responded by filing a complaint against defendants in superior court. Plaintiff then filed a Code of Civil Procedure section 1 425.16 motion to strike defendants’ arbitration claim. The superior court partially granted plaintiff’s motion. We conclude that section 425.16 does not authorize a superior court to grant a motion to strike an arbitration claim filed only in an agreed arbitral forum and not asserted by the claimant in any complaint, cross-complaint or petition filed in court. We therefore reverse the superior court’s order.

I. Background

In October 2002, plaintiff Terrance J. Sheppard entered into employment agreements with defendants Lightpost Museum Fund, Inc. (LMF), and Art for Children Charities, Inc. (ACC). Each agreement included a nondisclosure clause that remained applicable “at any time after Employee leaves employment of Employer.” The employment agreements provided for binding arbitration before Christian Dispute Resolution Professionals, Inc. (CDRP), of *319 any dispute that “arises out of, or relates to…

Opinion

MIHARA, Acting P.J.

Defendants submitted an arbitration claim to an arbitration organization asserting that plaintiff had breached the parties' contracts. Plaintiff responded by filing a complaint against defendants in superior court. Plaintiff then filed a Code of Civil Procedure section [1] 425.16 motion to strike defendants' arbitration claim. The superior court partially granted plaintiffs motion. We conclude that Code of Civil Procedure section 425.16 does not authorize a superior court to grant a motion to strike an arbitration claim filed only in an agreed arbitral forum and not asserted by the claimant in any complaint, cross-complaint or petition filed in court. We therefore reverse the superior court's order.

In October 2002, plaintiff Terrance J. Sheppard entered into employment agreements with defendants Lightpost Museum Fund, Inc. (LMF) and Art for Children Charities, Inc. (ACC). Each agreement included a non-disclosure clause that remained applicable "at any time after Employee leaves employment of Employer." The employment agreements provided for binding arbitration before Christian Dispute Resolution Professionals, Inc. (CDRP) of any dispute that "arises out of,…

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