On July 28, 2016, the California Supreme Court issued its opinion in Sandquist v. Lebo Automotive, Inc., acknowledging that the question of who (the court or the arbitrator) decides whether an arbitration agreement permits or prohibits classwide arbitration has divided state and federal courts. The Court ultimately concluded that no “universal rule” allocates the decision in all cases to either arbitrators or courts. The Court held that the question of who decides is governed by the parties’ arbitration agreement, subject to interpretation under state contract law. In Sandquist, the parties’ arbitration agreement allocated the decision on classwide arbitration to the arbitrator and, thus, the Court affirmed the Court of Appeal’s decision. To read the full decision, please click here.