Plaintiff and defendant entered into an employment contract. One of the provisions stated: “All disputes among the parties arising out of or related to this Agreement which have not been settled by mediation shall be resolved by binding arbitration within the State of Washington. . . .” Another provision stated: “This agreement shall be governed by, construed […]
If Class Proceedings Are Waived In An Arbitration Agreement, Arguments Under Public Policy Or Unconscionability Will Not Prevail.
Citing AT&T Mobility LLC v. Concepcion (2011) 131 S.Ct. 1740, [179 L.Ed.2d 742], and noting that the United States Supreme Court made it clear that states cannot require a procedure that interferes with fundamental attributes of arbitration, the California Supreme Court addressed whether a state’s refusal to enforce a waiver of class proceedings on grounds […]
Changing The Arbitration Rules In The Middle Of The Game.
After the U.S. Supreme Court issued its opinion in AT&T Mobility LLC v. Concepcion (2011) 131 S.Ct. 1740, [179 L.Ed.2d 742], Nordstrom made revisions to its employee arbitration policy contained in its employee handbook. These changes precluded employees from bringing most class action lawsuits. Weeks later, plaintiff filed a class action against Nordstrom, alleging violations of […]
Following The Rules Set At The Beginning Of The Arbitration Game.
When Bloomingdales hired plaintiff, she received a set of documents including advisement that its policy was to resolve disputes through arbitration unless she returned an enclosed form within 30 days electing, as the form put it, “NOT to be covered by the benefits of arbitration.” Plaintiff thereafter filed a class action against Bloomingdales for unpaid overtime […]
Another Arbitration Provision Found Unconscionable.
Defendants brought a petition to compel arbitration based on the following provision in their written agreement with plaintiffs: “If a dispute arises between Home Defender Center and Client regarding Home Defender Center’s actions under this agreement and Client files suit in any court other than small claims court, Home Defender Center will have the right […]
Trial Court Lacked Authority To Decide Enforceability Of Arbitration Agreement.
Several years after she was hired, plaintiff signed an employment arbitration agreement. One of the agreement’s provisions stated: “The Arbitrator, and not any federal, state, or local court or agency, shall have the exclusive authority to resolve any dispute relating to the interpretation, applicability, enforceability, or formation of this Agreement, including, but not limited to, any […]
Arbitration Agreement Found Unconscionable [“Nothing in fine print is ever good news.” Andy Rooney].
Car wash employees brought a class action against car wash companies. On defendants’ petitions for arbitration, the trial court concluded the arbitration agreement was unconscionable and refused to enforce it. Agreeing the arbitration agreement “suffered from multiple defects demonstrating a systematic lack of mutuality that favored the car wash companies,” the appellate court affirmed. (Carmona […]
Denial Of Arbitration In Class Action Against DIRECTV.
Plaintiff brought a class action lawsuit against DIRECTV. The trial judge denied defendant’s petition to compel arbitration. The relevant arbitration provision is contained in section 9 of DIRECTV’s 2007 customer agreement. Section 9 provides that “any legal or equitable claim relating to this Agreement, any addendum, or your Service” will first be addressed through an […]
Nonsignatory Beneficiary Of A Trust Cannot Be Compelled To Arbitration.
Plaintiff, a nonsignatory beneficiary of a trust which was amended to her detriment shortly before her mother’s death, brought an action for financial elder abuse. The issue is whether an arbitration clause in a trust document can bind a nonsignatory beneficiary. The trial court denied a petition to compel arbitration. Noting that plaintiff beneficiary “has […]
Trial Court’s Denial Of Petition To Compel Arbitration Reversed.
The trial judge denied defendant employer’s petition to compel arbitration in a wrongful termination case after finding the arbitration agreement was unconscionable. The arbitration agreement was presented to the plaintiff employee on a take-it-or-leave-it basis and his signature was a precondition to employment. But plaintiff contended he was already on the job working for over a week before […]
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