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Posts Tagged ‘Arbitration clause’

First District Approves of Arbitration Agreement, Despite Presence of Class Waiver and Arbitration of Public Claims

In Arbitration, Class Waiver, Concepcion, Public Claims on March 28, 2013 at 3:30 pm
Car Sales USA

Car Sales USA (Photo credit: emilio labrador)

Yesterday, the California Court of Appeal for the First Appellate District reversed a trial court’s denial of a motion to compel arbitration.  See Vasquez v. Greene Motors, Inc., et al., Case No. A134829, __ Cal.App.4th __ (1st Dist. Mar. 27, 2013).  The arbitration agreement related to the purchase of a used car on credit from defendants, but the opinion has implications for wage & hour class actions because the agreement contained a class waiver and the requirement to arbitration “public” claims.  Id. at 25-26.

The court found only minimal procedural unconscionability, but an absence of significant substantive unconsionability.  The arbitration clause was printed on the reverse side of a form contract, but the buyer was alerted to the presence of the clause.  The Court described the clause as follows:

The reverse side, also dense with text, contains a number of provisions in separate boxes, many dealing with typical ―boilerplate legal matters, such as warranties, applicable law, and buyer and seller remedies. None of the provisions on the back page requires a buyer‘s signature. Toward the bottom of the page is the arbitration clause. The entire text of the clause is outlined in a black border. In all capital letters and bold type at the top is written, ―ARBITRATION CLAUSE [¶] PLEASE REVIEW— IMPORTANT—AFFECTS YOUR LEGAL RIGHTS. Immediately below, three numbered provisions, also in all capital letters, inform the buyer either party may request arbitration, this would prevent a court or class-wide proceeding, and it might limit discovery. Read the rest of this entry »

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