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Tuesday, March 26, 2013

Compton v. Superior Court (American Management Services, LLC)

U.S. Supreme Court ruling in AT&T Mobility, LLC v. Concepcion, ___ U.S. ___, 131 S.Ct. 1740 (2011), which held that Federal Arbitration Act preempts California public policy disfavoring enforcement of agreements barring class-wide arbitration, does not preempt policy against enforcement of agreements that are so one-sided as to be unconscionable. Agreement compelling arbitration, and barring classwide or joint arbitration proceedings absent consent of all parties, was one-sided and unconscionable where it carved out unfair competition and trade secrets claims, and imposed a shortened limitations period for arbitrable claims while allowing carved-out claims--which were subject to a three- or four-year limitations period--to be litigated.
     Compton v. Superior Court (American Management Services, LLC) - filed March 19, 2013, Second District, Div. Eight
     Cite as B236669

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