Collins v. Diamond Pet Food Processors of California
United States District Court for the Eastern District of California
2013 U.S. Dist. LEXIS 60173 (2013)
- Written by Miller Jozwiak, JD
Facts
Volt, a staffing company, and its client, Diamond Pet Food Processors of California, LLC (employers) (defendants), jointly employed two employees (plaintiffs). Each employee signed an acknowledgment of a mandatory arbitration policy in an employee handbook. Under the arbitration agreement, the parties were required to submit employment disputes to arbitration, which would be operated consistent with the rules of the American Arbitration Association (AAA). The agreement then hyperlinked to the AAA’s website. The AAA’s website contained 78 different sets of rules, many of which were completely unrelated to employment matters. The employees brought various employment claims in federal court. The employers responded by advising the employees’ counsel of the arbitration agreement. When the employees still refused to submit the matter to arbitration, the employers moved to compel arbitration. The employees argued that the arbitration agreement was unenforceable because it was both procedurally and substantively unconscionable.
Rule of Law
Issue
Holding and Reasoning (England, C.J.)
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