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California Courts of Appeal

Apr. 2, 2015

Muddied waters on unconscionable arbitration agreements

A recent case creates confusion as to when a court will sever a provision that is clearly unconscionable versus finding the entire agreement to be unenforceable.

Timothy D. Reuben

Reuben Mediation

Tim Reuben spent more than 40 years handling complex legal disputes in California's state and federal courts. As the founder and managing partner of Reuben Raucher & Blum in Los Angeles, he has worked on a wide range of matters through jury and bench trials, arbitration, mediation, judicial reference, and settlement conferences across multiple areas of civil law, including commercial, real estate, construction, employment, intellectual property, insurance, professional liability, and unfair competition.

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Michael Hirota

Associate
Reuben Raucher & Blum

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For many California employers and employees, a mandatory arbitration policy is part and parcel of the employment relationship. How such an arbitration clause must read to be enforceable and not unconscionable has been the subject of many appellate opinions. Unfortunately, the 1st District Court of Appeal has muddied the waters as to when such arbitration agreements are enforceable.

In Serafin v. Balco Properties Ltd. LLC, 2015 DJDAR 3048, Justice Ignazio Ruvolo with Ju...

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