California Supreme Court Clarifies Discovery Limitations And Severability In Arbitration Agreements

The California Supreme Court issued its opinion in Ramirez v. Charter Communications, affirming in part that the arbitration agreement contained some substantive unconscionability but remanding the case to determine whether the agreement could be salvaged by severing the unconscionable provisions. In doing so, the California Supreme Court clarified its view on the enforceability of several common arbitration provisions – including those limiting discovery in arbitration – and the standard courts should apply when deciding severability.

The Case

Angelica Ramirez was hired by Charter Communications in July 2019 and signed an arbitration agreement as a condition of her employment. After her termination in May 2020, Ramirez sued Charter Communications for discrimination, harassment, and retaliation under the Fair Employment and Housing Act (FEHA).