Case Summary

P1556 The inequality of bargaining power between an employer and employees who were paid 80 cents per pizza delivery and were required to use their own cars at their own expense made an employment agreement containing an arbitration clause procedurally unconscionable; a section of the agreement that referred to a "panel" from which the arbitrator would be chosen was illusory, because instead of a panel, the arbitration provider offered only one arbitrator; since the employer was likely to be a repeat player before the same arbitrator, there was a danger that financial interdependence would give the employer an advantage; the latter two factors made arbitrator selection clause procedurally and substantively unconscionable; a class arbitration waiver in the agreement was contrary to public policy; a provision stating the arbitrator shall be responsible for resolving any disputes over interpretation or application of this arbitration agreement was not sufficiently clear to take from the court the power to determine whether the agreement was unenforceable as unconscionable.

SANCHEZ v WESTERN PIZZA (Pizza Delivery) 172 CA4 154 [See: CivC 1670.5; Armendariz v Foundation 24 C4 83, T/AT 9/00; Discover Bank v Superior Court 36 C4 148, P/AT 7/05]