Category: Arbitration: Enforceability

Arbitration/Employment/Unconscionability: First District, Division 3 Affirms Superior Court’s Refusal To Compel Arbitration Of Claims By Carpet Installers

The Arbitration Provision is Unconscionable, and Concepcion Does Not Change the Analysis      “Unconscionability” may sound like an abstract legal principle, but it usually entails a very fact-specific analysis.  Try out these facts:  plaintiffs are carpet layers; they speak Spanish; contracts were presented to them only in English; they have difficulty reading simple written English; […]

Arbitration: Unconscionability/Enforceability: AT&T Mobility v. Concepcion Requires Reversal of Order That Found Arbitration Agreement Unenforceable – With Court of Appeal Expressing No Opinion On Enforceability

  Another Example of the Search for Wiggle Room Within the Concepcion Straightjacket      California courts necessarily follow the ruling of AT&T Mobility LLC v. Concepcion, __ U.S. __ , 131 S.Ct. 1740 (2011), overruling the holding of Discover Bank v. Superior Court, 36 Cal.4th 148 (2005) that in turn had held that class action […]

Arbitration/Employment/Enforceability: Bad Facts For Employer Result in Unenforceable Arbitration Agreement

  Employer Fired Employee Hours After He Signed Arbitration Agreement – How Much More Do You Need to Know?      Plaintiff Ruzanno instituted arbitration proceedings against defendants Spectrum, Larson, Blake, and National University. The salient fact in this case is that Ruzanno signed the arbitration agreement hours before the employer fired him, purportedly without his […]

Arbitration/Enforceability/FAA/Construction: Arbitration Clause That The Employer Can Change Turns Out To Be Illusory

  Problem Here: Modification Provision Was Not Sufficiently Restricted So As To Exempt All Employee Claims, Accrued Or Known, From A Contract Change      Magician, Illusionist, Entertainer.  1913.  Library of Congress.      The next case takes us back to law school days:  is a contract illusory?  The case required the Court of Appeal to determine […]

Ninth Circuit Examines Class Action Waiver In Arbitration Clause and Searches For A Lifeboat

Could Choice of Law and Procedural Unconscionability Provide A Lifeboat For Class Action Plaintiffs After AT&T Mobility v. Concepcion?      Our latest arbitration case out of the Ninth Circuit contains an interesting twist on the analysis of collective-arbitration waivers in consumer contracts.  Coneff, et al. v. AT&T Corp., et al., No. No. 09-35563 (9th Cir. […]

Arbitration: 1st District, Div. 5, Finds No Error In Trial Court’s Decision Invalidating One-Sided Arbitration Clause in Employment Agreement

  Delegation to the Arbitrator of the Power to Decide Whether the Arbitration Clause is Unconscionable Is “Horse of a Different Color” That Must Satisfy High Evidentiary Standard      The employer, CantorCo2e, L.P., and an executive, appealed from an order denying their petition to compel arbitration of the claims under the Federal Arbitration Act (FAA) […]

Enforceability/Unconscionability: Third District Affirms Order That Employment Application Requiring Arbitration Is Unconscionable

  Plenty of Hurdles to Enforcement in This Particular Case      In Wisdom v. AccentCare, Inc., No. C065744 (3rd Dist. January 3, 2012) (certified for publication), the Court of Appeal held: “that a clause in an application for employment with AccentCare, Inc. (AccentCare), requiring only the applicant agree that, if hired, all disputes that cannot […]

Illegality/Enforceability: Arbitration Agreement with Unlicensed Contractor May Still Be Enforceable

  Fifth District Finds That The Contract Containing the Arbitration Clause Is Not Automatically Unenforceable      With limited exceptions, an unlicensed contractor will find it impossible to collect payment, and may also have to disgorge payments already made. Can an award in favor of the client of an unlicensed contractor be set aside on the […]