Kho

Oto, L. L.C. v. Kho

Good Law
14 Cal. App. 5th 691·2017 Cal. App. LEXIS 723·222 Cal. Rptr. 3d 506·2017 WL 3599067
Court of Appeal of CaliforniaAugust 21, 2017A147564California8,415 words

Opinion

lead Opinion

Margulies, J.

*698 Ken Kho filed a claim for unpaid wages with the California Labor Commissioner (commissioner) against his former employer, OTO, L.L.C., doing business as One Toyota of Oakland (hereafter One Toyota). After settlement discussions failed, One Toyota filed a petition to compel arbitration. Under the arbitration agreement, which One Toyota required Kho to execute without explanation during his employment, the wage claim would be subject to binding arbitration conducted by a retired superior court judge. Because the intended procedure incorporated many of the provisions of the Code of Civil Procedure and the Evidence Code, the anticipated arbitration proceeding would resemble ordinary civil litigation.

The trial court denied the petition to compel. Under Sonic-Calabasas A, Inc. v. Moreno (2013) 57 Cal.4th 1109 , 163 Cal.Rptr.3d 269 , 311 P.3d 184 ( Sonic II ), an arbitration agreement that waives the various advantageous provisions of the Labor Code governing the litigation of a wage claim is substantively unconscionable if it fails to provide the employee with an affordable and accessible alternative forum. The trial court concluded that the alternative anticipated by One…

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