Prior Participation in Dispute Resolution Program Manifests Assent to Program's Arbitration Provision 

 

An Alabama federal district court has compelled arbitration of a former employee's claims, noting that her participation in the first two steps of the employer's dispute resolution process manifested an intent to be bound to the final step of the process - binding resolution of claims by an outside arbitrator.

 

In Freeman v. Sterling Jewelers, Inc., Civ. A. No. 1:08CV154-SRW, 2008 WL 3890498 (M.D. Ala. Aug. 18, 2008), Freeman was employed by Sterling. During Freeman's employment, Sterling instituted a dispute resolution program called "RESOLVE" requiring that employment-related disputes be resolved through a three-step process, the third being arbitration...Full Story

 A California federal district court has rejected a wide range of substantive unconscionability challenges to a predispute employment arbitration agreement, noting that the incorporation of a recognized arbitral administrator's rule set satisfied many of the requirements imposed on California arbitration agreements under Armendariz. In Swallow v. Toll Brothers, Inc., Slip Copy, 2008 WL 4164773 (N.D. Cal. Sept. 8, 2008), Swallow was employed by construction company Toll.

 

As part of the employment relationship, Toll entered into an arbitration agreement with Swallow. Ward, a manager for Toll, maintained that Swallow was presented with the agreement, afforded an opportunity to review it, and ultimately signed it. Later, Swallow was terminated for allegedly ordering work at private residences and billing it to Toll...Full Story

Arbitration Agreement Unconscionable Where Wireless Provider Fails to Make Agreement Reasonably Available to Consumer
 

A federal court in Illinois held that where a wireless provider fails to make the terms of a service contract reasonably available to the consumer, either in paper or online, the contract is so procedurally unconscionable as to render the agreement invalid without consideration of the contract's substantive unconscionability.

 

In Trujillo v. Apple Computer, Inc., No. 07 C 4946, 2008 WL 4368937 (N.D. Ill. Sept. 22, 2008), Jose Trujillo bought an iPhone from an Apple retail store and gave the phone to Dawn Trujillo as a gift. AT&T is the exclusive provider of wireless service for the iPhone, and it requires a two-year service contract for the iPhone. However, the iPhone battery may not last two years because it must be replaced after about 300 charges, which requires the owner to send the device to Apple, incurring a $79 service fee plus other charges and fees. Consequently, Jose sued both Apple and AT&T (collectively, AATT) for fraud and various breach of contract claims based solely on this iPhone purchase...Full Story

 

An Indiana federal district court confirmed an arbitration award despite objections from the losing party that the arbitrator committed misconduct in failing to grant a request for a third continuance.

 

In Twist v. Arbusto, No. 4:05-CV-187-SEB-WGH, 2008 WL 3982365 (S.D. Ind. Aug. 22, 2008), Twist and Arbusto were investment entities that entered into various contracts to purchase oil and gas securities. All of the executed contracts contained an agreement to arbitrate. After a dispute, the parties submitted a joint demand for arbitration and selected an arbitrator...Full Story

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