Another Arbitration Agreement is Struck Down
Another Arbitration Agreement is Struck Down
On January 7, 2009, an order was issued by the Contra Costa Superior Court in a race discrimination and whistleblower retaliation case that found the arbitration agreement that Countrywide Home Loans company requires its employees to sign as a condition of employment unconscionable and unenforceable. Specifically, the court found two unconscionable provision in the arbitration agreement: (1) a provision giving the arbitrator exclusive authority to determine the arbitrability of employment case, and (2) a provision giving Countrywide the unilateral right to modify the agreement.
Having found the binding arbitration agreement unconscionable, the court struck that agreement as void and unenforceable, thus allowing the plaintiff to proceeds with his employment discrimination and retaliation claims to jury trial. Let’s hope this is the beginning of a trend.
