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Lubin Olson Successfully Obtains Order Enforcing Arbitration Agreement

Lubin Olson successfully enforced an arbitration agreement in an action pending in the United States District Court for the Northern District of California.  The Court's decision, which was recently published as Ulbrich v. Overstock.com, Inc., ___ F. Supp. 2d ___, 2012 WL 3631498 (N.D. Cal. Aug. 15, 2012), clarifies matters pertaining to the enforceability of contractual arbitration clauses under the Federal Arbitration Act (FAA). 

In Ulbrich, an employee argued that his arbitration agreement with his employer was "unconscionable" because the employer did not provide him with a copy of the rules that would govern any future arbitration.  While this argument has gained popularity in recent years among employees seeking to avoid contractual arbitration, the Court agreed with Lubin Olson's argument that disallowing incorporation by reference of the arbitration rules would cause arbitration agreements to be treated differently from other contracts -- a disparate treatment that is preempted by the FAA. The Court also enforced the parties' contractual venue clause, which required them to arbitrate out-of-state.  

Lubin Olson litigation partner Jonathan E. Sommer represented the employer in connection with its efforts to enforce its arbitration agreement.

 

 

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