Gurganus v. IGS Solutions LLC, 2025 WL 2944090 (Cal. Ct. App. 2025)
Sarah Gurganus sued her former employer (IGS Solutions) for violation of the Fair Employment and Housing Act (FEHA), including disability discrimination, wrongful termination and related claims. In response, IGS filed a motion to compel arbitration based upon an arbitration agreement that Gurganus electronically signed approximately five months into her employment with the company. Gurganus asserted that she was required to sign the arbitration agreement in an “oppressive manner as a condition of continued employment” and that there was evidence of “surprise,” which rendered the agreement procedurally unconscionable. The trial court denied the motion to compel arbitration, holding that the agreement was both procedurally unconscionable (a contract of adhesion) and substantively unconscionable (lack of mutuality of arbitration and a confidentiality provision that could preclude informal discovery). Further, the trial court refused to sever the unconscionable terms of the agreement. The Court of Appeal affirmed the trial court’s order denying the motion to compel arbitration. See also Villalobos v. Maersk, Inc., 114 Cal. App. 5th 1170 (2025) (arbitration order was properly denied where agreement failed to specify whether arbitrator or court would decide arbitrability; Labor Code claims were not arbitrable); Wilson v. TAP Worldwide, LLC, 114 Cal. App. 5th 1077 (2025) (employer’s failure to timely pay...
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