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Order Compelling Arbitration of Employment Discrimination Claims Overturned

By FindLaw Staff on February 19, 2010 12:15 PM

In Suh v. Sup. Ct., No. B219174, the court of appeals was asked to review an order by the trial court compelling arbitration involving anesthesiology contracts entered into by the plaintiffs (anesthesiologists) with a hospital, arising from plaintiffs' lawsuit against a hospital  alleging various causes of action including, age and national discrimination.

First, the court concluded that there was no evidence that plaintiffs were ever signatories to the agreement, and that as shareholders of a corporation, plaintiffs did not sign the agreement individually nor on behalf of the corporation. 

In granting plaintiffs' petition for writ of mandate, the court held that they did not agree to arbitrate disputes relating to one of the contracts and that the terms of the arbitration clause in the other contract are unconscionable, rendering the agreement to arbitrate unenforceable. 

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