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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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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PAULA BERNAL, et al.,

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For the Northern District of California

United States District Court

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Plaintiffs,

No. C 12-05792 JSW

v.
CASH AMERICA INTERNATIONAL, INC.,
et al.,

ORDER STAYING ACTION

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Defendants.
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/

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Now before the Court is Defendants’ motion to compel arbitration. The Court has

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considered the parties’ papers, relevant legal authority, and it finds this matter suitable for

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disposition without oral argument. See N.D. Civ. L.R. 7-1(b). Accordingly, the hearing set for

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February 1, 2013 is VACATED.

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With respect to all of Plaintiffs’ claims except their request for injunctive relief, the

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parties agree that Plaintiffs’ claims should be arbitrated. Plaintiffs contend, citing the rule

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established by Broughton v. Cigna Healthplans of California, 21 Cal. 4th 1066 (1999) and Cruz

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v. PacifiCare Health Sys., Inc., 30 Cal. 4th 303 (2003) that claims for public injunctive relief

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are not arbitrable (the “Boughton-Cruz rule”), that their claim for violation of California

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Business and Professions Code § 17200 cannot be arbitrated. In Kilgore v. Key Bank, 67. F.3d

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947 (9th Cir. 2012), the Ninth Circuit held that the Boughton-Cruz rule is preempted by the

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Federal Arbitration Act. However, the Ninth Circuit is rehearing the decision in Kilgore en

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banc. Therefore, Kilgore may not be cited as precedent. As suggested by Defendants, the
Court finds

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that it would be prudent to wait for the en banc opinion in Kilgore. Accordingly, the Court

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HEREBY STAYS this action until the en banc panel in Kilgore issues an opinion. The parties

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shall update the Court by joint submission within ten days of the ruling by the en banc panel, or

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every 120 days, whichever is sooner.

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IT IS SO ORDERED.

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Dated: January 28, 2012
JEFFREY S. WHITE
UNITED STATES DISTRICT JUDGE

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For the Northern District of California

United States District Court

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