Share on LinkedInShare on LinkedIn

ARTICLE · 03 JUNE 2026

Arbitration Agreement Was Not Substantively Unconscionable

Proskauer Rose LLP
Proskauer Rose LLP
Contributor
Proskauer Rose LLP

Proskauer Rose LLP

Firm Overview Proskauer is an elite global law firm with more than 900 lawyers across key financial...

View firm profile
Explore more from Proskauer Rose LLP

A California Court of Appeal examines whether conflicting language in multiple arbitration-related documents undermines the parties' intent to arbitrate employment disputes. The decision addresses how courts should interpret procedural and substantive unconscionability when evaluating arbitration agreements containing PAGA waivers and class action provisions.

United StatesLitigation, Mediation & Arbitration

Santana v. Studebaker Health Care Ctr., LLC, 120 Cal. App. 5th 1 (2026)

When J. Ascencion Santana was hired by Studebaker Health Care Center, he signed a series of documents, including three that were “arbitration related.” In response to Santana’s subsequent wage and hour putative class action, Studebaker filed a motion to compel arbitration, which the trial court denied based upon various “conflicts” among the three arbitration‑related documents (relating to a waiver of the right to bring a PAGA action). The Court of Appeal reversed, holding that the purported ambiguities among the documents did not undermine the parties’ clear intent to arbitrate notwithstanding some procedural unconscionability (which generally exists with contracts of adhesion). Compare Stoker v. Blue Origin, LLC, 120 Cal. App. 5th 91 (2026) (arbitration agreement was substantively unconscionable in that it was overbroad, non‑mutual, waived the right to a jury, and contained a class action waiver); see also Jules v. Andre Balazs Properties, 608 U.S. __, 2026 WL 1336216 (2026) (a federal court that has previously stayed claims in a pending arbitration under the FAA retains jurisdiction to confirm or vacate a resulting arbitral award).

Arbitration Agreement Was Not Substantively Unconscionable

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from