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Affirming a trial court's ruling confirming an arbitration award, a California appellate court held that an arbitration clause was not unconscionable because arbitration provided the parties with a "faster, more efficient dispute resolution process."
In Riegert v. Barker, No. B193471, 2007 WL 4201091 (Cal. Ct. App. Nov. 29, 2007), Riegert worked as production assistant on "The Price is Right" (TPIR). Pearson Television took over the production of the program in October 2000. On October 9, 2000, TPIR offered all program staff, including Riegert, a two-page separation agreement and general release, which contained an arbitration provision. The agreement stipulated that TPIR would lay off Riegert and pay her a $7,670 severance.
On January 3, 2001, Riegert sued Bob Barker, TPIR, and Pearson for wrongful termination, age and sex discrimination, and retaliation. The defendants jointly moved to compel arbitration pursuant to the separation agreement's binding arbitration clause. Riegert opposed the motion, arguing the contract was illegal, unconscionable, and fraudulently induced.
The trial court ordered arbitration. The arbitrator rejected Riegert's claims and ruled in the defendants' favor. The defendants moved to confirm the award. Riegert opposed confirmation by arguing, once again, that the arbitration clause was unconscionable. The trial court confirmed the award.
On appeal, the Court held that the arbitration clause was not unconscionable. Under California law, a party must establish a contract is procedurally and substantively unconscionable before a court may void it. The mere fact that an arbitration clause did not expressly mention that the parties were waiving their right to a jury was insufficient to establish procedural unconscionability. Courts have routinely upheld arbitration agreements without express jury waivers.
Moreover, Riegert failed to provide any evidence showing the contract was substantively unconscionable, even when pressed by the Court on the issue. Instead, the Court found: "By virtue of the arbitration provision, Riegert obtained the benefits of a faster, more efficient dispute resolution process-the time to trial is shorter; the time in trial is briefer."
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