Neiman Marcus Arbitration Pact Nixed Over Modification Clause

Law360, New York (April 18, 2012, 8:55 PM EDT) -- A California appeals court ruled Tuesday that an arbitration contract is not enforceable if it contains a modification provision that allows changes to the contract to apply to claims that are known to the employer, rejecting Neiman Marcus Group Inc.'s agreement with its employees.

The Second Appellate District found in a split decision that Neiman Marcus' arbitration agreement was doomed by a provision that the employer may amend or revoke the arbitration contract on 30 days' written notice, which said that at the end of the...
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