HP Production v. McDonald CA2/4

BACKGROUND

The parties to this litigation are plaintiff and respondent HP Production, Inc. (HP), 1 and defendant and appellant McDonald. HP is owned by Adam Sandler, and is managed by his brother Scott Sandler, neither of whom is a party to this action. HP employs and pays the individuals who work for Adam Sandler. In 2009, HP employed McDonald to work as a nanny for Adam Sandler’s children. After her employment ended, she raised employment-related claims against HP that were resolved in 2010 pursuant to a confidential settlement agreement. Pursuant to the settlement agreement, HP paid $80,000, of which $48,000 was paid directly to McDonald and $32,000 was paid to her attorneys; in return, McDonald agreed not to disclose confidential information and not to disparage HP or the Sandlers. The settlement agreement called for binding arbitration of any future disputes between McDonald and HP, including any claims arising from alleged unauthorized disclosure of confidential information, or the alleged breach, nonperformance, enforcement, interpretation or validity of the settlement agreement. The settlement agreement authorized the arbitrator to impose any and all legal or equitable…