Court of Appeal strikes down no-class-action arbitration clause as unconscionable: Compton v. Superior Court

In Compton v. Superior Court (American Management Services, LLC), ___ Cal.App.4th ___ (Mar. 19, 2013), the Court of Appeal (Second Appellate District, Division Eight) reversed an order compelling arbitration, finding the arbitration clause unconscionable under Armendariz.  One justice dissented.

A short excerpt from the majority opinion:

Concepcion did not discuss the modicum of bilaterality standard adopted by Armendariz, which is not a class action case.  And Concepcion did not overrule Armendariz.  We both agree with and are therefore bound to follow our Supreme Court and apply Armendariz to this case.  (Truly Nolen of America v. Superior Court, supra, 208 Cal.App.4th at p. 507.)  Accordingly, we conclude that Concepcion does not apply to invalidate Armendariz’s modicum of bilaterality rule, at least in this context.

Slip op. at 20.