Category: Arbitration: Unconscionability

Employment: Fourth District, Div. 3 Upholds Trial Court’s Order That Employee Must Arbitrate Individual Claims And Dismisses Class Claims Without Prejudice

  Court Summarizes Fractured Opinion About Gentry      Rivera v. Hilton Worldwide, Inc., Case No. G047644 (4th Dist. Div. 3 Nov. 26, 2013) (unpublished) is one more wage and hour case in which the employee is ordered to arbitrate individual claims and the Court upholds dismissal of class claims without prejudice.  The Court finds that […]

Arbitration/Employment/Unconscionability/FAA: Employee’s Waiver Of Dispute Resolution Berman Hearing In Favor Of Arbitration, While Not Per Se Improper, Could Still Be Unconscionable

SCOTUS Ruling In Concepcion Causes California Supreme Court To Change Its Position On Waiver of Berman Hearing        So what is a Berman hearing?  It is a dispute resolution forum established by the Legislature to assist employees in recovering wages owed.  Labor Code section 98.  The procedure is named after legislator Howard Berman, who instituted […]

Arbitration/Unconscionability/Employment: First District, Division 1 Concludes Arbitration Agreement Is Not Unconscionable And Reverses Trial Court’s Order Denying Arbitration

  Failure To Attach AAA Rules And Employer’s Unilateral Ability to Modify the Arbitration Agreement Were the Issues Here      Plaintiff Peng sued her employer for employment discrimination and related claims.  After the trial court denied defendant’s motion to compel arbitration, the employer appealed.  On appeal, the issues were whether the employer’s failure to attach […]

Arbitration/Employment/Unconscionability/Class: Fourth District, Division 3 Reverses Trial Court’s Denial Of Petition To Arbitrate, Finding Insufficient Evidence Of Unconscionability

  But Trial Court Was Correct That Class Arbitration Cannot Be “Inferred” From Silence On The Issue     The trial court judge denied Tenet Health Care Corporation’s motion to compel arbitration of a wage-and-hour lawsuit brought by a hospital nurse.  Tenet appealed and obtained a reversal.  McElroy v. Tenet Health Care Corporation, G047300 (4th Dist. […]

Arbitration/Employment/Unconscionability: Fifth District Reverses Trial Court And Orders Arbitration, Finding No Unconscionability

In Dictum, Court Suggests Armendariz Is No Longer Good Law      Mercado v. Doctors Medical Center of Modesto, Inc., Case No. F064478 (5th Dist. July 26, 2013) (Hill, P.J., author 3:0) (unpublished) offers a routine unconscionability analsysis of an employee agreement to arbitrate.  Finding “some degree” of procedural unconscionability, based on an adhesive contract and […]

Arbitration/Employment/Unconscionability: Qualifying Language Requiring Compliance With “Applicable Law” Saves Arbitration Agreement From Being Unconscionable

     Washington D.C. Bicycle Rental Shop. 1942.  Marjory Collins, photographer. Library of Congress.      Plaintiff Corbin sued her employer Specialized Bicycle Components, Inc. and its president for harassment, discrimination, and wrongful termination.  The trial judge, who commented about the defendant’s failure to provide the JAMS rules, found the agreement unconscionable, and refused to compel arbitration.  […]

Arbitration/Employment/Unconscionability: Second District, Division 1 Reverses Order Denying Motion To Compel Arbitration, Concluding That Contract Is Not Illusory, And Not Unconscionable

Employer’s Right to Change Dispute Resolution Process Is Held In Check By Implied Covenant of Good Faith and Fair Dealing      Having just blogged on June 5, 2013, about an opinion authored by Justice Mallano, reversing an order granting a motion to compel arbitration, I now blog about an opinion authored by Justice Mallano, reversing […]

Arbitration/Automobiles/Unconscionability: Second District, Div. 1 Revisits Ruling In Sanchez v. Valencia Holding Company, And Again Concludes That Arbitration Provision In Automobile Sales Contract Is Unconscionable

Split In Appellate Opinion      I have a separate sidebar category on “automobiles” because the auto industry spawns many decisions about the enforceability of arbitration clauses in sales contracts.  As I have previously posted on August 26, 2012, and January 7, 2013, Sanchez v. Valencia Holding Co. LLC, 201 Cal.App.4th 74 (2012) is pending before […]

Arbitration/Unconscionability: Fourth District, Division 3, Finds That Contract of Adhesion Is Not Procedurally Unconscionable

Justice Aronson Dissents, Believing Majority Misapplied Legal "Sliding Scale" Test To Contract of Adhesion       Plaintiff Nibler sued Monex, a precious metals trading company in which he invested, and lost, his inheritance. The trial court denied Monex's motion to compel arbitration, finding the arbitration provisions unconscionable. In fact Monex had been involved in another case, […]

Arbitration/Employment/Unconscionability: Second District, Div. 7, Reverses Trial Court, and Finds Employment Agreement Arbitration Requirement Is Not Unconscionable

Court Uses Full Bag Of Tools To Save Arbitration Provision      Life boat drill.  Between ca. 1910 and ca. 1915.  Library of Congress.      The Courts of Appeal have many tools for interpreting arbitration provisions, including sliding scales for weighing unconscionability, incorporation by reference, application of the implied covenant of good faith and fair dealing, […]