Subcontracting Concepts (CT), LLC v. De Melo

Good Law
245 Cal. Rptr. 3d 838·34 Cal. App. 5th 201
Court of Appeal of CaliforniaApril 10, 2019A152205California5,506 words

Opinion

Lead Opinion

Kline, J.

*840 *205 Subcontracting Concepts CT, LLC (SCI); Jesus Fernando Gonzalez; and Pedro Luesch (collectively appellants) appeal from the trial court's order denying their petition to compel arbitration and stay proceedings, brought against Chafie Gabriel Pereira Moreira De Melo (respondent) in this matter arising from respondent's administrative wage claim, filed with the California Labor Commissioner, against appellants. On appeal, appellants challenge the trial court's findings that the arbitration agreement between SCI and respondent was (1) procedurally and substantively unconscionable, and (2) so permeated with unconscionability that severance of the unconscionable terms was not possible. We shall affirm the court's order.

FACTUAL AND PROCEDURAL BACKGROUND

Respondent was hired by Express Messenger Systems, Inc., doing business as OnTrac (OnTrac) and SCI in June 2014, at which time he signed SCI's "Owner/Operator Agreement" (Agreement). 1 The Agreement is five pages long, typed in small font, and made up of 27 numbered clauses, including the arbitration clause at issue here, which is the 26th clause.

The arbitration clause provides that if the parties are unable to negotiate…

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