Motion to Compel Arbitration Agreement Containing A Class Action Waiver Granted And Subsequent Appeal Dismissed

In April 2010, the Second District Court of Appeal dismissed the plaintiff's appeal of the trial court's ruling granting defendant's motion to compel arbitration of the individual claims and staying the putative class action.  CDF was successful in obtaining the dismissal in favor of a Fortune 1000 fast food restaurant chain.  As for the underlying arbitration agreement, CDF successfully defeated plaintiff's argument that the arbitration agreement was, among other things, substantively unconscionable because it contained a class action waiver.  Distinguishing Olvera, and applying the Gentry factors, CDF established that the class action waiver was enforceable because it applied to a putative class of exempt managerial employees who were proficient in English, whose claims were substantial and thus more likely to be individually litigated, and who were informed of their legal rights.  CDF also established that the class action waiver in that action applied to claims brought by both defendant and defendant's employees, and that although admittedly rare, employers have asserted claims against their employees.  Lastly, CDF established that there was no potential for retaliation against the putative class members and no real world obstacles to the vindication of such putative class members' rights.



Timothy M. Freudenberger

Related Industries

  • Restaurants, Food, and Beverage

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