News & Events
Gladstone Michel Wins Unanimous Victory at CA Supreme Court
(June 15, 2010) -- Gladstone Michel won a significant victory at the California Supreme Court. The Court unanimously reversed the Court of Appeal in an employment case involving liability of foreign holding companies with interests in California businesses.
Gladstone Michel represents a foreign holding company that owns an interest in a local manufacturing company. A former employee of the local manufacturer not only sued his local employer on various employment-based claims, but also named the foreign holding company as a defendant, urging application of a little-used jurisdictional theory. The trial court determined that California had jurisdiction over the foreign holding company, and denied the company’s motion to dismiss the case on jurisdictional grounds (motion to quash service). On petition for writ of mandate, the Court of Appeal summarily denied relief, without comment.
The firm asked the California Supreme Court to weigh in, and it did. In a rare grant of review in a writ proceeding, the Supreme Court did not await further briefing or argument, but instead issued a terse order reversing the appellate court and directing it to order the trial court to grant the foreign company’s initial motion to quash.
The Gladstone Michel winning team included Allen Michel (appeal) and Teresa Tracy (trial level work and appellate briefing).