The California Supreme Court (the “Court”) has confirmed that an arbitration agreement’s formatting—standing alone—does not render its terms substantively unconscionable, even where the text is difficult to read.1 The Court...more
In Fuentes v. Empire Nissan, Inc., the California Supreme Court recently issued an opinion calling on courts to “closely scrutinize” arbitration agreements for substantive unconscionability where there is extreme procedural...more
The California Supreme Court held that illegibility and tiny font are matters of procedural, not substantive, unconscionability. However, courts must closely scrutinize the terms of hard-to-read agreements for unfairness, and...more
In employment cases, Plaintiff’s claim that arbitration agreements with small or blurry print should not be enforced as substantively and procedurally unconscionable due to the difficulty in reading the words in the contract....more
On February 3, 2026, the California Supreme Court issued its decision in Fuentes v. Empire Nissan, Inc. In this decision, which dealt with an illegible arbitration provision, the Supreme Court reversed the lower court and...more
The California Supreme Court held in Fuentes v. Empire Nissan, Inc. (Feb. 2, 2026) that small or blurry print in an arbitration agreement does not automatically invalidate the agreement as unconscionable. Instead, the Court...more
Just in time for the new year, Wise v. Tesla Motors, Inc. (2025) offers fresh guidance on how California courts should treat allegedly unconscionable terms in collateral employment agreements when deciding whether to enforce...more
In response to concerns raised by Governor Kathy Hochul and stakeholders in the employment sector regarding ambiguities in the Trapped at Work Act, the New York Legislature has quickly introduced Chapter Amendments...more
Employment arbitration agreements provide employers and employees with a fair and efficient way to resolve disputes outside of court litigation. The legal requirements for and best practices surrounding employment arbitration...more
If your business has an online presence, chances are you have an online service agreement or terms of use that include an arbitration agreement. But simply having such an agreement in place doesn’t necessarily mean it will be...more
In Wise v. Tesla Motors, Inc. (Wise), the California Court of Appeal sent a clear signal that courts may not use collateral defects in related employment agreements to invalidate an otherwise enforceable arbitration...more
Prenuptial agreements have long evolved beyond simple asset division roadmaps. Modern prenups address conduct during marriage, incorporating so-called “penalty” or “incentive” provisions that attach financial consequences to...more
On December 19, 2025, Governor Kathy Hochul signed the Trapped at Work Act (the “Act”), introducing sweeping new restrictions on certain employment-related repayment agreements. Effective immediately, the Act prohibits...more
New York has joined California in banning the use of almost all “stay-or-pay” agreements in employment. Often called “TRAPs” (Training Repayment Agreement Provisions), these obligations require workers to pay back their...more
New Year, new legislation — California and New York are leading the way in restricting certain “stay-or-pay” provisions in employment contracts. These types of provisions are relatively common....more
California Governor Gavin Newsom recently signed Senate Bill (SB) 82 into law, introducing significant changes that could reshape the enforcement of arbitration clauses in California consumer agreements. This legislation,...more
Several employment-related cases are currently pending before the California Supreme Court, and their outcomes could have a significant impact on workplace policies and risk management for employers and HR professionals....more
In the world of commercial real estate litigation, we deal frequently with agreements — leases, licenses, reciprocal easement agreements — made decades ago that may not correspond to contemporary practices....more
The Tenth Circuit recently affirmed a federal district court decision staying a supplier’s action to compel arbitration under the Federal Arbitration Act (FAA) while related litigation proceeded in Washington state court. Nu...more
The federal district court in Maryland granted in part and denied in part franchisor Spiffy Franchising, LLC’s motion to compel arbitration in a lawsuit brought by a franchisee. The court compelled arbitration for the...more
On September 16, 2025, the U.S. District Court for the Southern District of Mississippi declined to dismiss a claim for breach of guaranty agreements, rejecting the defendants’ argument that the contracts are “so...more
A federal court in California recently found that releases executed by former distributors were unenforceable and therefore denied a summary judgment motion filed by distributors Earthgrains Distribution, LLC and Bimbo...more
New Jersey AG Matthew J. Platkin and the Division of Consumer Affairs announced a $2.8 million settlement with MV Realty PBC, LLC and affiliates (collectively, “MV Realty”), resolving a 2023 lawsuit alleging that the company...more
Default interest, in a loan agreement, at a rate of 4% compounded monthly, was not extortionate given the legitimate interests at play and so was not an unenforceable penalty, according to the High Court. This, third...more
In 2017, then-teenage baseball prospect Fernando Tatis Jr. signed a contract with Big League Advance (“BLA”). BLA is a company that provides upfront cash to minor league baseball players in exchange for a percentage of their...more