Jury Waiver Ruling in California

“The California Supreme Court ruled that predispute contractual jury waivers are unenforceable under California law. In this decision, Grafton Partners L.P. vs. Superior Court, 05 C.D.O.S.. 6887, the Court affirmed the lower court and held that in California, a jury trial could be waived only in accordance with the applicable statute ( Section 631 of the Code of Civil Procedure) and that the statute did not authorize a predispute contractual jury waiver. The Court acknowledged that this decision was contrary to the rule in many other jurisdictions which do permit such waivers, but stated that this was an argument to be directed to the legislature.

“Unless the California legislature takes action to allow contractual jury waivers (as urged by the concurring opinion), it appears that contractual jury waivers will be unenforceable in a California court and it may be advisable to consider alternatives such as arbitration clauses which are enforceable in California.”

“This decision may impact your California transactions and documents. “

Barry A. Dubin, Esq.
Cooper, White & Cooper LLP
201 California Street
San Francisco, CA 94111
(415) 433-1900 ---Phone
(415) 433-5530----Fax

BDubin@cwclaw.com