California Employment Law Notes
After 19 Years of Litigation(!) And a $43 Million Award, Judgment in Escrow Officer Wage Case Is Largely Reversed
Cortina v. North Am. Title Co., 2026 WL 1506576 (Cal. Ct. App. 2026)
In this 137-page opinion, which the Court of Appeal noted involves an even more “rare and beastly case” than Duran v. U.S. Bank Nat’l Ass’n, 59 Cal. 4th 1 (2014), the Court held that the trial court committed multiple prejudicial errors, including permitting a trial plan and format that…
Arbitration Agreement Was Not Substantively Unconscionable
Cocom v. ABM Aviation, Inc., 2026 WL 1793637 (9th Cir. 2026)
In this putative wage and hour class action, the district court denied the employer’s motion to compel arbitration after concluding it was procedurally and substantively unconscionable based on the analysis of Cook v. University of S. Cal., 102 Cal. App. 5th 312 (2024). The Ninth Circuit, relying largely upon Ayala-Ventura…
Another Day, Another AI Hallucination Case
Quinteros v. Harbor Distrib., LLC, 2026 WL 1693424 (Cal. Ct. App. 2026)
Here we go again. The lawyers representing the plaintiffs in this putative wage and hour class action were responsible for “evident misuse of generative artificial intelligence (AI) in an otherwise meritless pleading.” The trial court ordered the attorneys to pay $5,000 in sanctions to the opposing party and $1,000 in sanctions to…
Former Flight Attendants May Proceed With Religious Discrimination Claims
Brown v. Alaska Airlines, Inc., 2026 WL 1813213 (9th Cir. 2026)
Former Alaska Airlines flight attendants Marli Brown and Lacey Smith sued their former employer for religious discrimination under Title VII and state anti-discrimination laws. The airline allegedly terminated their employment following their posting comments on an internal intranet communications network in response to the company’s statement of support of the Equality Act…
California Supreme Court Limits Use of CCP § 170.6 Motions to Disqualify Judges
J.O. v. Superior Court, 19 Cal. 5th 753 (2026)
Pursuant Cal. Code Civ. Proc. § 170.6, a party or attorney may disqualify a judge from a matter simply by signing an affidavit or orally stating under oath that the judge is “prejudiced” against a party, attorney, or their respective interests. If the motion is timely and properly presented, the disqualification is automatic and…
“Concrete Injury” Is Not Required To Establish FCRA Violation
Askins v. CRST Expedited, Inc., 120 Cal. App. 5th 1190 (2026)
Terry Askins applied online for a position with CRST, a trucking company. During the application process, CRST provided Askins with a disclosure form and indicated that a background check would be performed on him. Both before and during his employment, CRST conducted background checks on him. Askins filed a putative class action…
Employer May Pursue Contractual Interference Claims Against Competitor for Raiding Employees and Customers
Guild Mortg. Co. v. CrossCountry Mortg. LLC, 120 Cal. App. 5th 885 (2026)
The California Court of Appeal revived a host of tort claims asserted against a company that allegedly executed a plan to recruit a competitor’s employees, divert its customers, and appropriate its pipeline of active loan applications. Guild Mortgage alleged that over an 18-month period, CrossCountry Mortgage (CCM) induced and conspired with…
Employer May Pursue Multiple Claims Against Competitor for Raiding Employees and Customers
The California Court of Appeal has revived a host of tort claims against a company that allegedly executed a plan to recruit a competitor’s employees, divert its customers, and appropriate its pipeline of active loan applications. Guild Mortgage Co. v. CrossCountry Mortgage LLC, 2026 WL 1505950 (Cal. Ct. App. 2026).
Guild Mortgage alleged that over an 18-month period, CrossCountry Mortgage (CCM) induced and conspired…