Opinion Analysis: Sanchez v. Valencia Holding Company, LLC
The California Supreme Court has continued its dialogue with the U.S. Supreme Court about arbitration agreements in a recent ruling that affirmed the use of California unconscionability law to determine the validity of arbitration agreements, but declined to invalidate the agreement before it. In the course of this years-long dialogue, the California Supreme Court has tended to apply principles of California law to invalidate arbitration provisions, while the U.S. Supreme Court has tended to invoke the Federal Arbitration Act (“FAA”) to uphold arbitration provisions. Prior Decisions Over thirty years ago, the U.S. Supreme Court overturned a ban on arbitration imposed...
