California Court Rejects Employment Arbitration Agreement As Unconscionable

In Davis v. Kozak, the California Court of Appeal denied an employer’s motion to compel arbitration of a former employee’s claims, holding that the arbitration agreement between the parties was unconscionable because (a) it purported to limit the employee’s discovery right to two depositions absent a showing to the arbitrator of “sufficient cause”; and (b) the arbitration requirement was not mutual in that the employer was permitted to seek judicial action in the event the employee breached his confidentiality agreement.

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