Bernal et al v. Cash America International, Inc. et al

Filing 19

ORDER STAYING ACTION. Signed by Judge Jeffrey S. White on 1/28/13. (jjoS, COURT STAFF) (Filed on 1/28/2013)

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1 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE NORTHERN DISTRICT OF CALIFORNIA 8 9 PAULA BERNAL, et al., 11 For the Northern District of California United States District Court 10 12 Plaintiffs, No. C 12-05792 JSW v. CASH AMERICA INTERNATIONAL, INC., et al., ORDER STAYING ACTION 13 Defendants. 14 / 15 16 Now before the Court is Defendants’ motion to compel arbitration. The Court has 17 considered the parties’ papers, relevant legal authority, and it finds this matter suitable for 18 disposition without oral argument. See N.D. Civ. L.R. 7-1(b). Accordingly, the hearing set for 19 February 1, 2013 is VACATED. 20 With respect to all of Plaintiffs’ claims except their request for injunctive relief, the 21 parties agree that Plaintiffs’ claims should be arbitrated. Plaintiffs contend, citing the rule 22 established by Broughton v. Cigna Healthplans of California, 21 Cal. 4th 1066 (1999) and Cruz 23 v. PacifiCare Health Sys., Inc., 30 Cal. 4th 303 (2003) that claims for public injunctive relief 24 are not arbitrable (the “Boughton-Cruz rule”), that their claim for violation of California 25 Business and Professions Code § 17200 cannot be arbitrated. In Kilgore v. Key Bank, 67. F.3d 26 947 (9th Cir. 2012), the Ninth Circuit held that the Boughton-Cruz rule is preempted by the 27 Federal Arbitration Act. However, the Ninth Circuit is rehearing the decision in Kilgore en 28 banc. Therefore, Kilgore may not be cited as precedent. As suggested by Defendants, the Court finds 1 that it would be prudent to wait for the en banc opinion in Kilgore. Accordingly, the Court 2 HEREBY STAYS this action until the en banc panel in Kilgore issues an opinion. The parties 3 shall update the Court by joint submission within ten days of the ruling by the en banc panel, or 4 every 120 days, whichever is sooner. 5 IT IS SO ORDERED. 6 7 Dated: January 28, 2012 JEFFREY S. WHITE UNITED STATES DISTRICT JUDGE 8 9 11 For the Northern District of California United States District Court 10 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2

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