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Wednesday, July 24, 2013

Wisdom v. AccentCare: Supreme Court Dismisses Case on Unconscionability of Arbitration Agreement

In Wisdom v. AccentCare, Inc. (2012) 202 Cal.App.4th 591 (discussed here) the Court of Appeal affirmed a trial court order denying a motion to compel arbitration where the plaintiffs (six individuals) sought monetary, injunctive, and declaratory relief based on allegations that their employer required them to work off the clock. The Court of Appeal held that the arbitration agreement was both procedurally and substantively unconscionable.

The California Supreme Court granted review (discussed here) stating the issue on review as follows:
Is an arbitration clause in an employment application that provides "I agree to submit to binding arbitration all disputes and claims arising out of the submission of this application" unenforceable as substantively unconscionable for lack of mutuality, or does the language create a mutual agreement to arbitrate all such disputes? (See Roman v. Superior Court (2009) 172 Cal.App.4th 1462.)
I received notice today that the parties have settled, and the Supreme Court has dismissed the case.  

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