Gray

Gray v. Rent-A-Center West, Inc.

Good Law
314 F. App'x 15
United States Court of Appeals for the Ninth CircuitAugust 21, 2008No. 07-35185California819 words

Opinion

Lead Opinion

MEMORANDUM *

Robert Gray sued his former employer, Rent-A-Center West, Inc. (“RAC”), for injured worker discrimination under Or. Rev. Stat. § 659A.040 and violation of Oregon’s Family Leave Act, Or. Rev. Stat. § 659A.150 et seq. After removing the case to federal court, RAC moved to dismiss and compel arbitration pursuant to an arbitration agreement which Gray signed as part of his hiring documents. The district court granted RAC’s motion, and Gray filed this appeal. Gray contends that the arbitration agreement is unenforceable because it is unconscionable. We agree, and therefore reverse and remand to the district court.

Oregon courts have no bright-line formula for the unconscionability analysis. See Vasquez-Lopez v. Beneficial Or., Inc., 210 Or.App. 553 , 152 P.3d 940, 948 (2007). The primary focus, however, is the “substantial disparity in bargaining power, combined with terms that are unreason *16 ably favorable to the party with the greater power.” Id. (quoting Carey v. Lincoln Loan Co., 203 Or.App. 399 , 125 P.3d 814, 828 (2005)). Both procedural and substantive unconscionability are relevant considerations, but only substantive unconsciona-bility is “absolutely…

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