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Grafton Partners L.P. v. Superior Court

California Supreme Court
116 P.3d 479 (2005)


Facts

Grafton Partners L.P. (Grafton) (plaintiff) hired PriceWaterhouseCoopers L.L.P. (PWC) (defendant) to audit certain financial accounts. Grafton and PWC entered into an agreement for these services that included a provision agreeing not to demand a trial by jury for any claims arising out of the agreement. Grafton later sued PWC for negligence and misrepresentation. Grafton alleged that PWC had failed to disclose fraudulent business practices discovered during the audit and, instead, had attempted to cover-up those practices. During the litigation, Grafton demanded a jury trial. PWC moved to strike the jury demand based on the contractual waiver. The trial court granted the motion, and Grafton appealed. The Court of Appeal reversed, and PWC petitioned the California Supreme Court for review.

Rule of Law

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Issue

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Holding and Reasoning (George, C.J.)

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  • A "yes" or "no" answer to the question framed in the issue section;
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  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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Concurrence (Chin, J.)

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