Supreme Court Expands Unconscionability Doctrine To Invalidate Uber's Arbitration Clause

Summary

The Supreme Court of Canada released its highly anticipated decision inUber Technologies Inc. v Heller on June 26, 2020. The majority found that the arbitration agreement in Uber's service agreements with drivers was invalid, paving the way for a $400 million class action against Uber.

While the class action alleged breaches of Ontario's employment standards legislation, the potential implications of the Supreme Court's decision could reach far beyond the case's factual context. In particular, the decision could have consequences for enforcing arbitration agreements and may also influence the interpretation of standard form contracts. 

This Update summarizes the Supreme Court's decision and discusses some of its practical implications.