On Jan. 10, 2020 Chief District Judge Kimberly J. Mueller further defined the scope, issues and duration of the Temporary Restraining Order (TRO) she initially issued on Dec. 30, 2019. We blogged about the new California legislation and the TRO issued in Chamber of Commerce of the United States of America v. Bacerra, No. 2:19-cv-02456 on Oct. 11, 2019 and Dec. 30, 2019 respectively.
Now, in a Jan. 10, 2020 minute entry Judge Mueller explained the scope of the TRO and the supplemental briefing permitted. The minute entry stated:
After careful consideration of the parties’ arguments, the court granted the parties leave to file supplemental briefing . . . addressing jurisdiction, including standing, and the parties’ positions with respect to the severability of any provisions of AB 51, if the court grants the motion for preliminary injunction at least in part. * * * Pending the court’s issuance of an order on the preliminary injunction motion, the Temporary Restraining Order the court issued on December 30, 2019 shall remain in effect until January 31, 2020, while MODIFIED to clarify that defendants are temporarily enjoined from enforcing AB 51 to the extent it applies to arbitration agreements covered by the Federal Arbitration Act.
These qualifications relating to jurisdiction, standing, severability and coverage likely resulted from the parties’ briefing and arguments on Jan. 10th. During oral argument, Defendants took the position that the new law does not directly attack arbitration agreements but instead addressed their formation. They also argued that the Chamber of Commerce lacked standing to challenge AB 51. Continue Reading