ADR Case Updates
Recent ADR Case Update, 02/04/06
In case you have not seen them, attached are two recent ADR cases compelling arbitration. Both cases apply the criteria set forth last year by the California Supreme Court in Discover Bank v. Superior Court (2005) 36 Cal. 4th 148, dealing with class action waivers.
The first is Gentry v. Superior Court (Circuit City Stores, Inc.), filed January 19, 2006, in which the Appellate Court (Second District, Division Five) held that an employment arbitration agreement containing a class action waiver was not procedurally nor substantively unconscionable because the agreement was not a condition of Plaintiff's employment, and further provided that he could opt out. Therefore, Plaintiff was required to arbitrate his employment claims against Circuit City.
The second case is Jones v. Citigroup, Inc., filed January 26, 2006, in which the Appellate Court (Fourth District, Division Three) upheld an arbitration provision in a credit card agreement because the cardholders failed to demonstrate procedural unconscionability. The arbitration clause at issue gave the cardholders the right to opt out. Thus, it was enforceable and Plaintiffs were required to arbitrate.
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