News & Events
Gladstone Michel Wins Unanimous Victory at CA Appellate Court
(November 23, 2010) -- Gladstone Michel won a significant appellate victory in a published decision that can impact any foreign holding company with interests in a California business. The unanimous opinion by the California Court of Appeal for the Second District in BBA Aviation plc v Superior Court (2010) ___ Cal.App.4th ___ [2010 Cal.App. LEXIS 1999], an employment matter, reversed the trial court’s ruling against Gladstone Michel’s client, and resulted in the client’s dismissal from the case.
Gladstone Michel represents BBA Aviation plc, a foreign holding company that owns an interest in a local manufacturing company, Ontic. A former employee of Ontic sued not only his local employer on various employment-based claims, but also named the parent entity, BBA Aviation plc, as a defendant, urging application of a jurisdictional theory known as the representative services doctrine. The trial court determined that California had jurisdiction over BBA Aviation plc, 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 initially 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 granted review and directed the Court of Appeal to hear the issue.
After further briefing and oral argument, the appellate court issued its unanimous decision holding that the evidence before the trial court did not support the exercise of jurisdiction over BBA under the representative services doctrine, or any other recognized theory.
The Gladstone Michel winning team included Allen Michel (appeal) and Teresa Tracy (trial level work and appellate briefing).