Craighead v. Midway Rent A Car CA2/3
California and federal law now favor arbitration as an efficient, cost-effective alternative to litigation. An employer and employee may voluntarily agree to arbitrate their legal disputes, but as with other contracts, courts will not enforce agreements that violate public policy. While plaintiff and respondent Khrysta Craighead worked at Midway Rent A Car (Midway), the company adopted a policy requiring the parties to arbitrate most types of legal claims arising out of the employment relationship. After Craighead filed a wrongful employment termination suit against Midway, the company sought to compel arbitration under its policy. But the trial court denied Midway’s petition because it found Craighead had not agreed to the arbitration policy (rather, it had been imposed on her by Midway) and, in any event, the policy was unenforceable because it was a contract of adhesion so disproportionately favorable to Midway as to be unconscionable.
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