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California Civil Procedure, Keyed to Levine, 6th Ed.
Grafton Partners L.P. v. Superior Court
Citation:
36 Cal. 4th 944, 32 Cal. Rptr. 3d 5, 116 P.3d 479 (2005)Facts
The petitioners, Grafton Partners L.P. and Allied, operated partnerships and engaged the real party in interest, PriceWaterhouseCoopers L.L.P., an accounting firm, to audit certain accounts in March 1999. The engagement letter sent by PriceWaterhouseCoopers on March 11, 1999, contained a provision under the heading “release and indemnification” that included language stating the parties agreed “not to demand a trial by jury in any action, proceeding or counterclaim arising out of or relating to” the firm’s services and fees. On June 27, 2002, petitioners filed a complaint against PriceWaterhouseCoopers alleging negligence, misrepresentation, and other causes of action based upon the firm’s asserted failure to disclose and cover-up of fraudulent business practices discovered during its audit. When petitioners demanded a jury trial in their third amended complaint filed March 19, 2003, the trial court granted PriceWaterhouseCoopers’ motion to strike the jury demand based on the predispute waiver clause in the engagement letter.
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