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 adoptedby Armendariz, which is not a classaction case.  And Concepcion did not overruleArmendariz.  We both agree with and are therefore bound tofollow our Supreme Court and apply Armendarizto this case.  (Truly Nolen of America v. Superior Court, supra, 208 Cal.App.4that p. 507.)  Accordingly, weconclude that Concepcion does notapply to invalidate Armendariz’smodicum of bilaterality rule, at least in this context.

Slip op. at 20.