Richey v. AutoNation, Inc

In Richey v. AutoNation, Inc. (2015) 60 Cal.4th 909, the trial court had reviewed and vacated an arbitration award in a Family Medical Leave Act/California Family Rights Act matter. Although the trial court confirmed the award, the court of appeal concluded the arbitrator erred in deciding the case based on the federal "honest belief" defense, which was untested in California courts, and the error was a basis to vacate the award. (Richey, at pp. 912-913.) The California Supreme Court did not decide whether any error that occurred deprived the employee of an unwaivable statutory right, justifying judicial review and vacation of the award. Instead, the court concluded any error was not prejudicial because the arbitrator found the employee was dismissed for another reason. The arbitrator "made no legal error that deprived plaintiff of an unwaivable statutory right when it relied upon the substantial evidence that plaintiff violated company policy." (Id. at pp. 920-921.)