California Court Rejects Arbitration Provision As Unconscionable

In Ali v. Daylight Transport, LLC, a California appellate court determined that a proposed class action lawsuit brought by truckers claiming that they were misclassified as independent contractors and thus denied certain employment benefits was not subject to arbitration, for the reason that the arbitration agreement was unconscionable and unenforceable. For interested practitioners, the opinion provides a detailed analysis of the issues surrounding claims of procedural and substantive unconscionability of arbitration agreements.

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