Ralphs Arbitration Deal 'Shocks The Conscience': 9th Circ.

Law360, Los Angeles (October 28, 2013, 10:28 PM EDT) -- The Ninth Circuit on Monday affirmed a district court’s denial of Ralphs Grocery Co.’s motion to compel individual arbitration of a putative class action alleging it stiffed deli clerks on overtime and meal breaks, saying the arbitration policy “shocked the conscience.”

The decision comes after Ralphs urged the appeals court in August to compel arbitration, saying a trial judge had erred in finding the arbitration agreement the company required employees to sign was unconscionable under California contract law. Ralphs’ attorneys argued that U.S. District Judge Dean...
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