It started out as just a viciously ugly fight over a giant contingency fee. But a new order from the California Supreme Court has transformed a dispute between Dentons and onetime partner Jinshu “John” Zhang into a landmark test of a state law mandating California jurisdiction for employment disputes involving California employees.
, with parallel proceedings in New York and California to determine the enforceability of the arbitration agreement and the nature of Zhang’s relationship with Dentons.
in November that under the delegation clause of Zhang’s arbitration agreement with Dentons, it’s up to a New York arbitrator to decide the threshold question of whether Zhang was an employee.at the time, said that to hold otherwise and allow Californians to strip other states of jurisdiction just by claiming rights under the California Labor Code, “is antithetical to notions of comity and is at odds with the animating purpose of the Federal Arbitration Act.
The California Supreme Court nevertheless granted Zhang’s petition on Thursday. Zhang counsel Dan Csillag of Murphy Rosen said the order shows the broad importance of his client's arguments. But the New York appellate ruling in December removed all impediments to the arbitration – and time has run out for Zhang to appeal that decision to New York’s highest court.
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