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When arbitration agreements go too far: Lessons from Cook and Ramirez

Recent California decisions underscore that while courts favor arbitration, overly aggressive employer-drafted agreements risk unenforceability when they compromise fairness.

Both federal and California law embody a strong policy favoring the enforcement of arbitration agreements. The Federal Arbitration Act reflects a congressional determination that arbitration provides a speedy, economical and efficient forum for dispute resolution. California courts have long echoed this preference, recognizing arbitration as a valuable alternative to the congestion and expense of traditional litigation. Yet as the recent decisions in Cook v. University of Southern California (2024) 102 Cal. App.5th 312 and Ramirez v. Charter Communications, Inc. (2024) 16 Cal. 5th 478 demonstrate, an employer’s attempt to maximize the reach of an arbitration agreement can backfire when the drafting overreaches fundamental fairness. Plaintiffs’ counsel should, of course, be aware of these concerns in crafting any opposition to a motion to compel arbitration. 

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This website is not a solicitation for business. All content on the JAMS website is intended to provide general information about JAMS and an opportunity for interested persons to contact JAMS. The content of this website is not offered as legal advice or legal opinion and it should not be relied upon for any specific situation.  JAMS neutrals are not engaged in the practice of law and no attorney client relationship is intended.  This website is for informational purposes only and does not constitute a complete description of JAMS services. While JAMS endeavors to keep the information updated and correct, JAMS makes no representations or warranties of any kind, express or implied, about the completeness, accuracy, or reliability of the information contained in this website. 

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