American Apparel Can't Arbitrate Claim CEO Choked Employee

Law360, Los Angeles (May 24, 2013, 3:59 PM EDT) -- American Apparel Inc. on Friday lost a bid to force into arbitration a suit alleging CEO Dov Charney choked a former store manager and tried to rub dirt in his face, when a California judge ruled that the arbitration agreement the plaintiff signed was invalid.

Los Angeles Superior Court Judge Steven Kleifield said the agreement could not be enforced because the confidentiality provision requiring Michael Bumblis not to publicly disparage American Apparel was unconscionable and could not be severed from the agreement without rewriting it. Bumblis alleges Charney assaulted him at the retailer's Malibu store in April 2012.

"The thing that...

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