Guess, Inc. v. Superior Court

In Guess, Inc. v. Superior Court (2000) 79 Cal.App.4th 553, the defendant did not plead the arbitration clause as an affirmative defense, participated in discovery initiated by the plaintiff without claiming a right to arbitrate, and then three months later moved to compel arbitration. The court found the defendant's conduct to be inconsistent with its present claim of a right to arbitrate. (Id. at pp. 557-558.) It found prejudice to the plaintiff as a result of its exposure to the substantial expense of pretrial discovery and motions that would have been avoided by prompt assertion of the right to arbitrate. The plaintiff also lost whatever efficiencies would otherwise have been available to it through arbitration. (Id. at p. 558.) The defendant, according to the appellate court, was attempting to have its cake and eat it too. "In litigation, as in life, you can't have your cake and eat it too." (Id. at p. 555.)