Category: Arbitration: Unconscionability

Arbitration/Enforceability/Unconscionability: Fourth District Division 1 Agrees With Trial Court That Automobile Dealership’s Arbitration Provision Is Unconscionable

  However, California Supreme Court Will Likely Make Ultimate Determination of Issues in Pending Sanchez v. Valencia Holding Co. Case      Arbitration clauses in contracts for automobile purchases and leases offer fertile ground for litigation.  See our April 12, 2012 post about Kolev v. Euromotors West/The Auto Gallery, 586 F.3d 1024 (9th Cir. 2011) (opinion […]

Arbitration/Employment/Unconscionability: Second District, Division 5 Affirms Denial of Petition to Arbitrate Wrongful Termination Employment Dispute

  Majority Opinion Identified Many State Law Contractual Problems With Arbitration Provision      Plaintiff Sparks sued for wrongful termination, and employer Vista Del Mar Child and Family Services petitioned to arbitrate the dispute.  The trial court denied the petition, and the employer appealed.  Sparks v. Vista Del Mar Child and Family Services, Case No. B234988 […]

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/Class Actions/Waiver/Unconscionability: Second District, Division 7, Agreeing That Class Action Waiver Is Unconscionable, Affirms Trial Court

  No Need To Decide Whether Concepcion Overrules Gentry Here – Because "This Is Not A Close Case"      These proceedings began in 2004 when Ralphs Grocery Company employees sued Ralphs for alleged violations of the Labor Code and Unfair Competition law. The proceedings moved up and down the appellate ladder. Eventually, after a remand, […]

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. […]

Ninth Circuit Holds California Broughton-Cruz Rule That Claims For Public Injunctive Relief Cannot Be Arbitrated Is Preempted By Federal Arbitration Act

  Court Also Lays Bare The Policy Consequences For The Privatization Of Consumer Justice      In Kilgore v. KeyBank, No. 09-16703 & No. 10-15934 (9th Cir. March 7, 2012) (authored by Judge Trott) (for publication), the Ninth Circuit resolves an FAA preemption issue dividing the district courts, lays bare the policy consequences for consumer justice, […]

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) […]

Arbitration/Unconscionability/Employment/FAA: Employment Arbitration Provision Invalidated By 4th District, Div. 3, On Grounds of Unconscionability

  Arbitration Provision Drafted By Employer in Contract of Adhesion Was Too One-Sided      The next case, though unpublished, nicely lays out principles relevant to an arbitration clause in the employment context, including procedural and substantive unconscionability, Federal Arbitration Act (FAA) preemption, and severability. Mayers v. Volt Managemnt Corp.,Case No. G045036 (4th Dist. Div. 3 […]

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 […]