E-Alert Item: New Employer Sued for Unfair Competition Can’t Delay Arbitration Between Employee and Former Employer

After Nancy Duitch left her position as president of One World Networks Integrated Technologies to work at Buckhead Marketing, she entered into arbitration with One World over a series of disputes involving wages owed to her, and unfair competition claims by One World. One World also sued Buckhead Marketing for unfair competition. Buckhead Marketing then asked a court to stay the arbitration between Duitch and One World because Duitch would be required to turn over evidence that would harm Buckhead’s interest in the pending lawsuit with One World. But a California appeals court ruled that Buckhead Marketing couldn’t halt the arbitration because it wasn’t a party to it, despite the fact that it was involved in a separate, related lawsuit.