The U.S. Supreme Court held that, where a contract is subject to the Federal Arbitration Act, a court may not refuse to enforce an arbitration clause with a class action waiver on grounds that such a clause is unconscionable. AT&T Mobility LLC v. Concepcion (U.S.Supr.Ct.; April 27, 2011) 131 S.Ct. 1740, [179 L.Ed.2d 742, 79 U.S.L.W. […]
Employment Arbitration Provision Not Unconscionable.
Plaintiff brought an action against her employer under the Fair Employment and Housing Act [FEHA; Government Code section 12940] and the Family Rights Act [Government Code section 12945.2] and for wrongful termination in violation of public policy. The arbitration agreement plaintiff signed provided, “I understand and agree that if my employment is terminated or my employment […]
Allegations In Complaint Do Not Amount To Judicial Admissions.
A law firm allegedly represented both buyer and seller in the sale of commercial property. The buyer borrowed more than half the purchase price and relied on rental income to make loan payments. After several months, the tenant stopped paying, and in the absence of rental income, the purchaser was unable to make loan payments. The […]
Law Firm’s Arbitration Petition Denied In Employment Case.
In an employment discrimination action, defendant law firm petitioned to compel arbitration of the claims based on a letter agreement: “You and the Firm agree that any legal disputes which may occur between you and the Firm and which arise out of, or are related in any way to your employment with the Firm or its […]
Employment Arbitration Agreement Unconscionable.
When plaintiff applied for a job as a property manager, she signed an arbitration agreement which was part of the employment application. It barred class action disputes, provided that all claims had to be filed within one year, was presented on a take it or leave it basis, and stated the employer “has implemented an arbitration […]
Union Permitted To Proceed With Allegations Of Corruption By Railway.
In the arbitration of a railway employee’s wrongful discharge claim, a neutral arbitrator on the special adjustment board issued a draft award reinstating the employee. The railway representative said to the arbitrator: “If you are going to issue these kinds of opinions, you will never work for a Class One railroad again,” whereupon the arbitrator recused […]
Provision In Arbitration Agreement Contrary To Public Policy.
Plaintiff sued a nursing home alleging negligent care and treatment. Defendant petitioned to compel arbitration, pursuant to an arbitration agreement, which the trial court granted, after severing the attorney fee provision which stated the parties would bear their own attorney fees and costs. The trial judge explained that provision was contrary to the Elder Abuse Act […]
Another Non-Signatory Wrongly Sent To Arbitration.
The trial court decided that, since a janitorial business had an arbitration agreement with its workers compensation insurance company, the doctrine of equitable estoppel applied with regard to whether, or not, it had to arbitrate a dispute with the third party administrator of its workers compensation claims. The Court of Appeal found the doctrine inapplicable and […]
Sign This Arbitration Provision If You Want To Work Here.
Carpet installers were told to sign a form contract when they were hired and again during their employment. The contract included an arbitration provision among its 37 paragraphs, a six-month statute of limitations and a unilateral attorney fee provision which worked to the detriment to the employees. The forms were in English and the employees did […]
No Arbitration For Skilled Nursing Facility In Elder Abuse Case.
A patient sued a skilled nursing facility for elder abuse based on alleged negligent care. Her daughter sued the same defendants in the same complaint for negligent infliction of emotional distress based on what she allegedly observed her mother go through. The mother had signed an arbitration agreement, and defendants moved to compel arbitration. The trial […]
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