In what has to be the most intensely litigated jurisdictional dispute in the history of fee fights between law firms and their ex-partners, Dentons has invoked the U.S. Constitution’s Full Faith and Credit Clause in an attempt to shut down Jinshu “John” Zhang's last-ditch bid at the California Supreme Court to halt New York arbitration with his former firm.
Now Dentons has brought the interstate conflict to the fore, arguing in afiled this week at the California Supreme Court that the Full Faith and Credit Clause requires California to defer to New York’s final determination. Even if California disagrees with New York’s interpretation of California policy, wrote Dentons’ lawyers at Gibson, Dunn & Crutcher, the California justices are constitutionally bound to respect New York’s already-entered judgment on its jurisdiction over Zhang.
At the moment, however, the question is just whether New York or California has jurisdiction to decide the threshold matter of Zhang’s employment status. Zhang has argued that unless California clarifies its right to decide who is entitled to the protection of its labor code, employers can evade California law by forcing workers to sign arbitration agreements mandating out-of-state arbitration.
“No doubt he disagrees with the New York court’s analysis—but the whole point of full faith and credit is that another state’s final order must be fully enforced even if a court in the forum state disagrees with its reasoning,” the Dentons brief said.
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