Originally from World Arbitration And Mediation Review (WAMR)

Preview Page

NINTH CIRCUIT HOLDS EMPLOYEE

DISPUTE RESOLUTION PROGRAM
UNCONSCIONABLE IN DAVIS V. O'MELVENY & MYERS

In Davis v. O'Melveny & Myers, the Court of Appeals for the Ninth
Circuit found an employee Dispute Resolution Program unenforceable
because it was both substantively and procedurally unconscionable.1
On August 1, 2002, the law firm of O’Melveny & Myers, LLC
(“O’Melveny”) adopted a Dispute Resolution Program (“DRP”) which
established final and binding arbitration for most employment-related
claims. The DRP stated, in part:

Except as otherwise provided in this Program, effective
November 1, 2002, you and the Firm hereby consent to the
resolution by private arbitration of all claims or controversies,
past, present, or future … in any way arising out of, relating to, or
associated with your employment with the Firm or the
termination of your employment … that the Firm may have
against you or that you may have against the Firm…. The Claims
covered by this Program include, but are not limited to, claims for
wages or other compensation due; … and claims for violation of
any federal, state or other governmental constitution, law, statute,
ordinance, regulation or public policy….

Except as otherwise provided in the Program, neither you nor the
Firm will initiate or pursue any lawsuit or administrative action
(other than filing an administrative charge of discrimination with
the Equal Employment Opportunity Commission, the California
Department of Fair Employment and Housing, the New York
Human Rights Commission or any similar fair employment
practices agency) in any way related to or arising from any Claim
covered by this Program….