The California Supreme Court, at the request of the Ninth Circuit, recently considered whether, under California law, a plaintiff may assert a tort claim for fraudulent concealment arising from or related to the performance of a contract. The California Supreme Court answered the question with a qualified “yes,” finding that the economic loss rule does not bar fraudulent concealment claims in all cases. The court ruled that a plaintiff may assert a fraudulent concealment claim based on conduct occurring during a contractual relationship if (1) the elements of the claim can be established independently of the parties’ contractual rights and obligations and (2) the tortious conduct exposes the plaintiff to a risk of harm beyond the reasonable contemplation of the parties when they entered into the contract.

On July 25, 2024, the California Supreme Court issued its unanimous decision in Quach v. California Commerce Club, eliminating the longstanding requirement under the California Arbitration Act (“CAA”) that a party opposing arbitration show that it had suffered prejudice as a result of the moving party’s delay in attempting to compel arbitration. No. S275121, 2024 WL 3530266 (Cal. July 25, 2024).

In a recent case, Doe v. WebGroup Czech Republic, A.S., the U.S. Court of Appeals for the Ninth Circuit answered a question that is frequently asked by U.S. litigants: “Is a foreign defendant subject to personal jurisdiction in a U.S. federal court where the defendant operates a website directed at the U.S. market?” For the first time, the Ninth Circuit provided a pragmatic standard for a critical issue in a world of globalized e-commerce and cloud computing.

The United States Supreme Court recently declined to review a property rights challenge to rent stabilization laws in New York City. The laws at issue limit rent increases and generally require landlords to renew a tenant’s lease. The denial of certiorari by the Supreme Court has significant implications for the countless rental unit owners and tenants in New York City, where approximately one million homes are subject to rent regulation, and could have serious ripple effects for rental owners and tenants in California.

Litigants facing a trial court’s denial of an attempt to compel arbitration may find themselves surprised by a significant change in California law that recently became effective on January 1, 2024: An appeal from an order denying or dismissing a petition to compel arbitration no longer automatically stays trial court proceedings. This reversal by the California Legislature from the historic norm—where an appeal would automatically stay trial court proceedings—amended Civil Code of Procedure Section 1294(a) and now gives trial court judges discretion to stay or continue proceedings. The amendment took effect this year after moving through the Legislature as California Senate Bill No. 365 (SB 365) and was approved by Governor Newsom on October 10, 2023.