In a 4-3 decision, the California Supreme Court recently determined that the question of “who decides whether [an arbitration] agreement permits or prohibits classwide arbitration” is not subject to a “universal rule [that] allocates this decision in all cases to either arbitrators or the courts.” See Sandquist v. Lebo Automotive, Inc., Case No. S220812, 2016 WL 4045008 (Cal. July 28, 2016). Instead, the question depends on contract interpretation under California law, unless it conflicts with federal law. The arbitration agreement in Sandquist was silent concerning classwide arbitration, so the broad language confirming the parties’ agreement to have an arbitrator decide “any claim, dispute, or controversy” was sufficient to demonstrate that the parties expected the arbitrator to resolve the issue.
