The Supreme Court of California — the most influential state high court in our nation — held this week (1) that, contrary to the U.S. Supreme Court’s ruling under the federal Arbitration Act, parties may contract for a searching review of arbitration awards under the California Arbitration Act and (2) that the CAA requires courts, instead of arbitrators, to decide whether a dispute may proceed as a class arbitration. Cable Connection, Inc. v. DIRECTV, Inc., No. S147767 (Cal. Aug. 25, 2008) (rejecting Hall Street Assocs., LLC v. Mattell, Inc., 128 S. Ct. 1396 (2008)).

The ruling follows a long string of the Court’s decisions limiting the ability of corporations to impose arbitration on consumers.