Armendariz

Armendariz v. Found. Health Psychcare Servs., Inc.

Bad Law
2000 Cal. LEXIS 6120·2000 Daily Journal DAR 9401·24 Cal. 4th 83·24 Cal. 83·99 Cal. Rptr. 2d 745
Supreme Court of CaliforniaAugust 24, 2000S075942California36,983 words

Opinion

Lead Opinion

Mosk, J.

In this case, we consider a number of issues related to the validity of a mandatory employment arbitration agreement, i.e., an agreement by an employee to arbitrate wrongful termination or employment discrimination claims rather than filing suit in court, which an employer imposes on a prospective or current employee as a condition of employment. The employees in this case claim that employees may not be compelled to arbitrate antidiscrimination claims brought under the California Fair Employment and Housing Act (FEHA) (Gov. Code, § 12900 et seq.) We conclude that such claims are in fact arbitrable if the arbitration permits an employee to vindicate his or her statutory rights. As explained, in order for *91 such vindication to occur, the arbitration must meet certain minimum requirements, including neutrality of the arbitrator, the provision of adequate discovery, a written decision that will permit a limited form of judicial review, and limitations on the costs of arbitration.

The employees further claim that several provisions of the arbitration agreement are unconscionable, both because they fail to meet these minimum requirements and because the arbitration…

Concurring Opinion

Brown, J.

Although I agree with most of the majority’s reasoning, I write separately on the issue of apportioning arbitral costs. The majority takes the simple approach: where the employer imposes mandatory *128 arbitration and the employee asserts a statutory claim, the employer must bear all costs “unique to arbitration.” (Maj. opn., ante, at p. 113.) Simplicity, however, is not a proxy for correctness. As explained below, I do not believe that the possible imposition of arbitration forum costs automatically undermines an employee’s statutory rights. Accordingly, I see no reason to adopt the majority’s preemptive approach. Instead, the issue of apportionment is better left to the arbitrator, and any problems with the arbitrator’s decision should be resolved at the judicial review stage.

In adopting the bright-line approach advocated by Cole v. Burns Intern. Security Services (D.C. Cir. 1997) 105 F.3d 1465, 1484-1485 [ 323 App.D.C. 133 ] (Cole), the majority argues that the mere risk that an employee may have to bear certain arbitral costs necessarily “chills the exercise” of her statutory rights. (Maj. opn., ante, at p. 110.) Thus, arbitration is not a reasonable substitute for a court…

Opinion

In this case, we consider a number of issues related to the validity of a mandatory employment arbitration agreement, i.e., an agreement by an employee to arbitrate wrongful termination or employment discrimination claims rather than filing suit in court, which an employer imposes on a prospective or current employee as a condition of employment. The employees in this case claim that employees may not be compelled to arbitrate antidiscrimination claims brought under the California Fair Employment and Housing Act (FEHA) (Gov.Code, § 12900 et seq.) We conclude that such claims are in fact arbitrable if the arbitration permits an employee to vindicate his or her statutory rights. As explained, in order for such vindication to occur, the arbitration must meet certain minimum requirements, including neutrality of the arbitrator, the provision of adequate discovery, a written decision that will permit a limited form of judicial review, and limitations on the costs of arbitration.

The employees further claim that several provisions of the arbitration agreement are unconscionable, both because they fail to meet these minimum requirements and because the arbitration agreement is…

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