STIPULATION AND [PROPOSED] ORDER TO STAY PROCEEDINGS AND ADMINISTRATIVELY CLOSE FILE PENDING RULING FROM THE CALIFORNIA SUPREME COURT

LUCY H. KOH, District Judge.

WHEREAS, in the Joint Case Management Conference Statement filed by the parties on May 21, 2013, defendant Midland Funding, LLC indicated that it intended to file a motion to compel arbitration of this matter.

WHEREAS, the arbitration clause which appears on the purchase contract relating to the motor vehicle which plaintiff Maria Perez purchased is substantially similar to the arbitration clause in the standard motor vehicle purchase contracts used throughout California for a number of years.

WHEREAS, several state appellate courts, as well as several federal courts have ruled on the issue of whether the arbitration clause in such standard contracts is unconscionable and unenforceable, with varying results.

WHEREAS, the matter of Sanchez v. Valencia Holding Company, 135 Cal.Rptr.3d 19 (2011)(review granted) is currently pending in the California Supreme Court, Supreme Court Case No. S199119. In that case, review was granted of an appellate court decision which held that the standard motor vehicle purchase contract arbitration clause was unconscionable. The petition for review was granted on March 21, 2012, and the case has been fully briefed since November 13, 2012. On April 25, 2012, the Supreme Court granted calendar preference to the case pursuant to California Code of Civil Procedure § 1291.2.

WHEREAS, the parties believe that the Supreme Court's decision in Sanchez v. Valencia Holding Company may provide clarification concerning the enforceability of the arbitration clause present in plaintiff's purchase contract.

WHEREAS, the parties agree that judicial economy would be best served by placing a stay on this litigation pending the California Supreme Court's ruling in Sanchez v. Valencia Holding Company.

NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED between Plaintiff MARIA PEREZ and Defendant MIDLAND FUNDING LLC that;

1) This litigation is stayed pending the California Supreme Court's ruling in Sanchez v. Valencia Holding Company;

2) The court may administratively close the file; and

3) When a ruling is made in Sanchez v. Valencia Holding Company, the parties shall submit a stipulation to lift the stay and re-open this litigation.

ORDER

PURSUANT TO STIPULATION, IT IS ORDERED AS FOLLOWS: