Murray v. United Services Automobile Assn.
United Services Automobile Association (USAA) appeals from an order denying its motions to compel arbitration of employment-related claims asserted by its former employees, Thomas J. Murray and Vincent B. McLorg. USAA contends the trial court erred in concluding that the arbitration agreement at issue is unconscionably one-sided and thus unenforceable under Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83 (Armendariz).
Court conclude the agreement impermissibly restricts the right to recover certain costs that might otherwise be awarded in a court action. Aside from these cost recovery provisions, there are no substantively unconscionable provisions in the agreement. In light of our conclusion, we reverse the order denying the motions to compel arbitration and remand the matter to the trial court to exercise its discretion whether to sever the unconscionable provisions and compel arbitration.
Comments on Murray v. United Services Automobile Assn.