Failure To Highlight Provision In Multi-Page Employment Handbook And To Notify Employees That Signing The Handbook With The Provision Could Forfeit Their Ability To Participate In The Existing Class Action Cemented The Unconscionability Conclusion. In law school, many of us got introduced to the notion of contractual unconscionability through the interesting decision in Campbell […]
Washington And California State Law Unconscionability Analysis Are Different. DeGraff v. Perkins Coie California P.C. et al., A148405 (1/1 2/21/18) (Dondero, Humes, Banke ) (unpublished) applies Washington state law to analyze the enforceability of an arbitration provision in a dispute between an attorney and his former law firm. Reversing the order denying the […]
But Procedural Unconscionability Was Low. After Diaz and Martinez filed suit for various employment-related claims, their employer Hutchinson moved unsuccessfully to compel arbitration, and appealed. Diaz et al. v. Hutchinson Aerospace & Industry, Inc., et al., B271563 (2/8 10/27/17) (Flier, Bigelow, Rubin) (unpublished). The Court of Appeal followed the template for […]
Employee Did Not Ask For A Translation. Plaintiff Zaragoza filed a wage and hour class action against her employer, and the employer moved, successfully, to compel arbitration. Zaragoza appealed, arguing the arbitration agreement was void and obtained by fraud because she could not read English. Zaragoza v. Sela Healthcare, Inc., E065373 (4/2 9/11/17) (Codrington, […]
California Law Requires Both Substantive And Procedural Unconscionability To Avoid Enforcement Of Arbitration Provision. The Court of Appeal's conclusion that it was "disturbed by the manner" in which an arbitration agreement was drafted and presented to an employee for signature, and that an "extraordinarily high degree of procedural unconscionability" existed, was not enough […]
Arbitration Agreement Included Alabama Choice Of Law Provision. Alabama State Flag. When former employees, who were hired as temporary claim adjusters, sued the insurance company that had hired them in a class action complaint alleging various employment violations, the California trial court agreed that the arbitration agreement was unconscionable. Analyzing the trial court's order under […]
The Unconscionable Provision Permitted Only The Defendant To Seek Equitable And Injunctive Relief In A Court Of Law. In Enyong v. Westlake Services, LLC et al., B275952 (2/5 4/24/17) (Kriegler, Baker, Dunning) (unpublished), the Court of Appeal concluded that an arbitration provision contained only one unconscionable term, which was severable. Therefore, it reversed […]
Panel Rejects Employee’s Arguments That Six Provisions Are Unconscionable, Requires Severance Of “Judicial Carve-Out” Provision, And Punts On “Reaffirmation Clause” Provision. Poublon v. C.H. Robinson Company, et al., No. 15-55143 (9th Cir. 2/3/17) (Ikuta, Callahan, Bea) is an opinion that employers will likely cite when arguing against employee claims that an arbitration clause is substantively […]
Limitations On Discovery Did Not Make Arbitration Unconscionable, Because The Limitations Applied Equally. A vintage downtown beauty parlor, part of the Ackley Heritage Center that also includes an old-time soda fountain as well as prairie houses and farm buildings on the outskirts of town in Ackley, Iowa. 2016. Carol M. Highsmith, photographer. Library of […]
Defendants’ Failure To Disclose Prohibitively Expensive Arbitration Fees To Low Income Plaintiffs Weighed Against Enforcement Of The Arbitration Provision. When 61 “primarily low-income mobilehome owners” sued Wildwood Mobile Home Country Club (“Westmont”), naturally Westmont moved to compel arbitration. After the trial court denied the motion, Westmont appealed. Unsuccessfully. Penilla v. Westmont Corporation, B262097 […]