Category: Arbitration: Unconscionability

Choice of Law; Delegation: Delegation Clause And Agreement Arbitration Disabling Application Of California Law In Employment Dispute Are Found To Be Substantively Unconscionable

“Exotic” Choice Of Law Clause Is The Key To This Case.      Stained glass in Neiman Marcus store, San Francisco.  Carol M. Highsmith, photographer.  2012.  Library of Congress.      Neiman Marcus drafted an ingenious choice of law clause that the First District, Division Four, describes as “exotic” – perhaps a euphemism for “too clever by […]

Arbitration, Scope, Unconscionability: First District, Div. 3 Holds Oakland Raiders’ Asst. Football Coach Was Properly Required To Arbitrate With Raiders And Its Head Coach

  Scope Of Arbitration Provision Was Broad And Unconscionability Was Lacking.      This case will be of interest to football fans, and maybe even to lawyers.  Hanson v. Cable, A138208 (1st Dist. Div. 3 April 15, 2015) (Jenkins, McGuiness, Pollak) (unpublished).       Plaintiff/appellant Randy Hanson sued The Oakland Raiders and its former head coach Tom […]

Arbitration, Employment, Enforceability, Unconscionability: Court of Appeal Rejects Employee’s Contentions She Never Entered Into Binding Arbitration Agreement

Also Rejected:  Contentions The Agreement Was Unconscionable.      The Court of Appeal affirmed the judgment against an employee, including rulings that her claims were subject to arbitration, in Serafin v. Balco Properties Ltd., LLC, Case No. A141358 (1/4 March 16, 2015) (Ruvolo, Reardon, Rivera).       COMMENT:  The Court’s analysis of appellant’s arguments gives a pretty […]

Arbitration, Delegation, Unconscionability: AAA Rule Delegating To Arbitrator Power To Rule On Jurisdiction And Existence, Scope Or Validity Of Arbitration Agreement Is Held To Be Ambiguous

AAA Delegation Rule Did Not Preclude Trial Court From Ruling On Unconscionability, But Trial Court Is Reversed, Because The Arbitration Agreement Is Not Unconscionable.      After her criminal law professor allegedly said, “"Many women in the field look like dykes, just like you, Anna," Anna Eakins sued Corinthian Colleges, its college president, and her professor. […]

Arbitration, Employment, Unconscionability Severability: Substantively Unconscionable Arbitration Provision Is Saved By Severability Clause

Court of Appeal Only Found Fee-Shifting Provision To Be Substantively Unconscionable.      The trial judge, the Hon. Mary Ann Murphy, found the employer-employee arbitration Agreements to be unconscionable and unenforceable because JAMS rules were not referenced, a fee-shifting provision permitted an award of fees to the prevailing defendant on employee’s FEHA claims without factual findings […]

Arbitration/Unconscionability/Employment: First District, Division 3, Holds Specific Arbitration Provision Between Law Firm And Former Attorney Is Unconscionable

Arbitration  Provision Failed Armendariz Tests.      Nelson v. Tucker Ellis, LLP is somewhat atypical, because it was the former attorney, rather than his former law firm, who “seized the bull by the horns”, initiating suit, and contending that the law firm released attorney Nelson’s privileged work product to other counsel, thereby interfering with his employment […]

Arbitration/Enforceability: Substantial Evidence Supporting Trial Court’s Determination Stroke Victim Lacked Capacity To Enter Into Arbitration Agreement

Consent To Contract Must Be Free, And An “Unsound Mind” Is Related To Concept Of Consent.      In an unpublished opinion, the Court of Appeal has affirmed the trial court’s order denying a nursing facility’s petition to arbitrate, because the plaintiff lacked mental capacity to enter into the arbitration agreement.  Rodriguez v. Windsor Care […]

Arbitration: Court Of Appeal Affirms Finding That Arbitration Agreement Is Unconscionable, But Concludes That Unconscionability May Be Cured Through Severance

Denying All Discovery In Arbitration Of Professional Malpractice Claims Is Unconscionable.      Surgery scalpels.  1878.  Library of Congress.      The Second District, Division Four, has affirmed the trial court’s finding of unconscionability, but concludes that unconscionability may be cured through severance in an arbitration of professional malpractice claims.  Lateral Link Group v. BLA Schwartz, Case […]

Arbitration/Employment/Unconscionability: Perplexed Court Of Appeal Offers Pointers On Drafting An Enforceable Arbitration Provision

How To Avoid Drafting An Unconscionable Arbitration Agreement.      We usually summarize opinions, but here, the Court of Appeal does a good job itself of summing up how to draft an enforceable arbitration provision in an employment agreement.  The case is Woods v. JFK Memorial Hospital, Inc., G050286 (4/3 Oct. 30, 2014) (Moore, Rylaarsdam, Thompson) […]

Arbitration/Disclosures: Arbitrator’s Failure To Timely Disclose He Attended Memorial Service For Attorney Directly Implicated In Legal Malpractice Claim Results In Reversal Of Order Confirming Award

No Good Deed Goes Unpunished . . .        Here, the Court of Appeal reverses the order affirming the arbitrator’s award because the arbitrator, distinguished retired judge Eli Chernow, failed to timely disclose that he had attended the memorial service for attorney Steven Knowles, who “was directly implicated in the legal malpractice claim” brought by […]