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Castro v. SBM Site Services, LLC CA1/5
Before he began working for SBM Site Services (SBM), Aaron Castro signed an agreement requiring arbitration of disputes “arising out of or related to” his employment. About six months later, Castro signed a trade secret agreement which, among other things, prohibited Castro from using or disclosing SBM’s trade secrets and confidential information without SBM’s authorization. The trade secret agreement required disputes “arising out of” that agreement to be litigated in state or federal court in Sacramento County.
After his termination, plaintiff filed a lawsuit alleging SBM refused his request for time off and fired him in retaliation for seeking medical leave. SBM moved to compel arbitration pursuant to the arbitration agreement. The trial court denied the motion. It concluded the trade secret agreement rendered the arbitration agreement substantively unconscionable, and that the unconscionability could not be severed.

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