Grafton Partners v. Superior Court

In Grafton Partners v. Superior Court (2005) 36 Cal.4th 944, the plaintiff had retained an accounting firm. The firm's engagement letter required that, in the event of a dispute, the parties would waive their right to a jury. The Supreme Court found this agreement was not enforceable because the Legislature has not expressly authorized such a prelitigation waiver of the "inviolate right" to a jury trial as required by article I, section 16 of the California Constitution. (Grafton, supra, 36 Cal.4th at p. 951.) The court found this constitutional limitation on permissible jury waivers exists because the right to a trial by jury is "'too sacred in its character to be frittered away or committed to the uncontrolled caprice of every judge or magistrate in the State.'" (Id. at p. 956.) Moreover, the court noted that even where a statute permits a jury waiver, the right to a jury is "considered so fundamental that ambiguity in the statute permitting such waivers must be 'resolved in favor of according to a litigant a jury trial.' " (Ibid.) Importantly, the court in Grafton noted that the states which have permitted a contractual jury waiver, have imposed a number of procedural safeguards not typical in commercial law, including requirements which place on the party seeking enforcement of a waiver the burden of proving "the waiver clause was entered into knowingly and voluntarily." (Id. at p. 965.)