Don’t change horses in the middle of a stream — and pick your horse carefully. Those are the lessons of the California Supreme Court’s recent 4-3 decision in Murray v. Alaska Airlines, Inc., 10 C.D.O.S. 11012.
The court held in Murray that once a party initiates an administrative proceeding, any adverse findings may have preclusive effect in a subsequent lawsuit in court, even if the agency never held a formal adjudicatory hearing, and even if the party could have sued in the first instance without going through the administrative process. In the court’s words, it is the “opportunity to litigate” the administrative dispute to conclusion that matters. If the losing party had — but did not invoke — a right to an administrative hearing and judicial review, the initial investigative findings may determine dispositive facts once and for all.
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