Supreme Court of California

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Sheppard, Mullin, Richter and Hampton, LLP v. J-M Manufacturing Co., Inc., 232946

Held that a dispute over legal fees should not have been submitted to arbitration because the arbitration clause in the parties' agreement was unenforceable. A law firm recovered its outstanding fees through arbitration after it was disqualified from a case due to a conflict of interest. On review, however, the California Supreme Court held that the matter should never have been arbitrated because the law firm's failure to disclose a known conflict rendered its agreement with its client, including the arbitration clause, unenforceable as against public policy. The high court also held that the conflicts waiver the client signed was ineffective.

Appellate Information

  • Decided
  • Published 2018/08/30


  • Kruger


  • Supreme Court of California