California Supreme Court

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Petition for review denied

December 17, 2014

U.S. Chamber urges California Supreme Court to review law governing parent company liability

December 05, 2014

In its amicus letter, the U.S. Chamber urged the California Supreme Court to vacate and remand the lower court's decision for reconsideration in light of Patterson, which was issued after the Court of Appeal's first ruling in Casteñada. Under Patterson, a corporation may be liable to an affiliate's employee only if there is a clear nexus between the employee's claims and the corporation's area of operational control.

In the event that the California Supreme Court decides against granting review, the Chamber's letter urged that it depublish the opinion in Casteñada to minimize its adverse impact on the law governing parent company liability for subsidiaries' employment matters.

Fred A. Rowley, Jr. of Munger, Tolles & Olson LLP served as counsel for the U.S. Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.

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