Opinion Analysis: Richey v. AutoNation
On January 29, 2015, a unanimous California Supreme Court issued its opinion in Richey v. AutoNation, Inc., an important clarification on when a court can overturn an arbitration award. Facts Plaintiff Richey worked as an at-will employee for defendant Power Toyota. His employment terms included acceptance of (1) a company policy that prohibited outside work while on approved medical leave and (2) an agreement to resolve any employment dispute through arbitration. The arbitration agreement provided that any decision would be “final and binding.” The agreement did not expressly provide that courts could review any arbitration award for legal error. Richey...