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Ontiveros v. DHL Express (USA), Inc., No. A114848 (Cal. Ct. App. June 30, 2008)
Jackson Lewis LLP - July 25, 2008 Continuing what appears to be an attempt to eliminate the use of private arbitration agreements, the California Court of Appeal has struck down a pre-employment arbitration agreement for at least the fourth time over the past year. Ontiveros v. DHL Express (USA), Inc., No. A114848 (Cal. Ct. App. June 30, 2008). Declaring the agreement “unconscionable,” a California Court of Appeal ruled that a provision giving the arbitrator the authority to decide enforceability was unenforceable. The agreement also failed to comply with the minimum requirements for lawful arbitration of non-waivable civil rights claims set forth by the California Supreme Court in Armendariz v. Foundation Health Psychcare Svcs., Inc., 24 Cal. 4th 83 (Cal. 2000). Accordingly, the court affirmed the trial court’s order denying the employer’s motion to compel arbitration and allowed the plaintiff’s claims of sex discrimination, harassment, and retaliation to proceed in court.
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