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California Class Action Lawyers
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California Court of Appeal declares Circuit City's Arbitration Agreement Unenforceable |
A good example of an unfair arbitration agreement is discussed in the decision of Gonlugar v. Circuit City Stores, Inc. Harris & Kaufman represents the plaintiff against Circuit City in an overtime pay class action. In September 2004, a court of appeal said that Circuit City's arbitration agreement could not be enforced. The court of appeal found that the terms of Circuit City's arbitration agreement were so one-side that it "shocked the conscience". Among the things, Circuit City's arbitration agreement bound only the employee to arbitration, required the employee to pay fees to Circuit City just for initiating the arbitration (Circuit City pays no such fees), imposes a shortened statute of limitation on the employee (and not on Circuit City), and prohibits class actions. The court concluded that the "central purpose of the agreement" was "tainted with illegality". Click Here to read the entire text.
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Red Lobster Restaurant Arbitration
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On June 10, 2005, an arbitrator employed by the American Arbitration
Association ruled in favor of Harris & Kaufman's
client, Jogesh Sidhu. To read the decision, Click Here.
Mr. Sidhu brought a lawsuit against GMRI, Inc., and Darden Restaurants,
Inc., the owners and operators of the Red Lobster Restaurant chain.
The defendant's successfully enforced the company's arbitration agreement
and then argued that the arbitration agreement precluded class arbitration.
The matter then went before the arbitrator who ruled in favor of
Mr. Sidhu. This case was one of the first of kind and one of the
first to go through the American Arbitration Association's "Clause
Construction" procedures put in effect after the United States
Supreme Court's decision of Green Tree Financial Corp. v. Bazzle.
This decision does not represent the ultimate victory in the case,
but it is a substantial step forward.
More Class Action Victories
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Arbitration Lawyers in California |
Unfortunately, in California, an employer can require its employees
to agree to arbitration as a term of employment. There are some
protections. If an agreement has too many unfair or one sided terms,
California courts may refuse to enforce the arbitration agreement
or sever the unfair terms.
Do not ignore these agreements if you have a dispute with your
employer. Many people think that these agreements can be ignored
or that it is some paperwork to cover a legal formality. Under
California arbitration law, if you ignore the arbitration agreement,
at some point a court may find you in breach of the arbitration
agreement. In that case, you will not be able to proceed with an
arbitration or in court, and you will not be able to get any remedy
for your dispute no matter how good your case is.
Arbitration is a very tricky area because the law is still developing.
You should consult a knowledgeable arbitration lawyer before to
trying to resolve any dispute where you have an arbitration agreement.
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Our
California Arbitration Law Firm Can Help You |
HARRIS AND KAUFMAN IS A CALIFORNIA law firm that's dedicated to representing employees in disputes against their employers to do with arbitration in the State of California. Our lawyers can assist you if you believe that your employer has broken the California Labor Law.
Our employment attorneys are experienced and have had numerous trials, arbitrations, and appeals and have litigated on behalf of thousands of employees.
Harris & Kaufman has represented workers in state and federal court and in administrative proceedings before the California Labor Commissioner. Determined and aggressive, our cases include individual disputes and class action lawsuits. Based in Sherman Oaks, California we serve greater Los Angeles, Orange County, Ventura County and have cases statewide.
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