In Cobb v. Ironwood Country Club (Cal. App. Fourth Dist. Div. 3; January 28, 2015) 233 Cal.App.4th 960, [183 Cal.Rptr.3d 282], the defendant club amended its bylaws to include a provision requiring club members to arbitrate disputes, four months after the plaintiffs, two club members and two former club members, filed the instant case. The club then moved to compel arbitration, claiming that the post-suit amendment applied because of the club’s unilateral right to amend its bylaws. The trial court denied the motion and the Court of Appeal for the Fourth District affirmed, holding that even though the bylaws could be amended unilaterally, the covenant of good faith and fair dealing constrained the club from retroactively impairing the plaintiffs’ accrued rights.
Leave a Reply
You must be logged in to post a comment.