So what is the next step? and how soon?
I'm not sure if this has been answered elsewhere, but I wasn't able to find it with a quick search, so I checked the docket. So, the appellant's (WTS) brief is due on 1/7/13. Typically, litigants file the brief within a day or so of when they are due and not earlier. Once they file, the appellee (Conti) gets 30 days to file her brief. So we can assume Conti's brief will be due around 2/7/13. Then, the WTS will have 20 days to file what's called a reply brief, at which time briefing is closed. So we should expect that briefing will be closed around the end of February, after which a date will be set for oral agruments. Note that this is not foolproof, however. Sometimes extensions are granted on these deadlines.
Typically, oral arguments will be scheduled anywhere from 3-6 months after the case is fully briefed. So, assuming no extentions, we should expect that oral arguments will occur either June or September-October, 2013. (The judges usually don't hear oral arguments in July-August; they catch up on writing their opinions, and take vacations). Oral arguments generally last only 15-30 minutes, and consist only of one attorney form each side engaging in dialogue with the panel of three appeals judges. In my experience, oral argument is actually not that important, and it is very common for all three judges to have decided how they are going to vote even before oral argument. The briefs are the most important part here. The judges will not announce a decision on the day of oral argument. After oral argument, the court has 90 days to release its opinion, although unlike the parties, the judges don't usually wait until the last day - the opinion could be released anytime from a week or two after oral argument on. I hope this helps anyone interested in following the appeal process.
This is all incredibly important - I don't think the appeal is by any means a slam dunk for either side, although they will both act tough in any public statements as if it were. Also, this may be the last word on the case. As with the U.S. Supreme Court, the California Supreme Court, which would be the next step in the appeal process, has discretion to decide which cases it hears. So, although the loser from the appeals court will almost certainly file an appeal petition to the California Supreme Court, it can decline to hear the case without giving any reason whatsoever, meaning whatever the appeals panel decides is final.