Legal Question in Civil Litigation in California
When I signed the contract with this advertising agency I overlooked the arbitration clause - it provided for me to resolve all disputes via JAMS mandatory arbitration, but for them, who prepared this contract for my signature, the clause provided the opportunity to sue in Small Claims court.
It so happened that they turned out to be cheaters and I took them to Small Claims for my money back. The judge dismissed my law suit and ordered mandatory arbitration. To go through it I need to spent about $2,500.00 t0 $3,000.00. I do not have such money. I paid them $4,500.00 and want my money back. I am trying to file a motion to vacate the judgment based on the fact that the contract has this self-serving clause for them to be able to sue in Small claims but not for me. Is there supporting authority for my position? Can I in my motion to vacate the judgment say that the contract is unequal?
2 Answers from Attorneys
I don't know why you would file a motion to vacate the judgment as there has been no judgment. Was this an employment contract? If so, there is California case law stating that an employee who agrees to an arbitration clause does not have to spend any more money on arbitrating the claim then they would have to if they filed the claim in civil court. In that case, it would simply require a letter to your former employer providing a cite to the case law and stating that you request the arbitration and that they pay all of the costs of arbitration except for those costs you would have had to pay had you filed the claim in civil court (usually around $300-$500).
The other option would be to file your claim in civil court regardless of the fact that there is this arbitration clause, and then if they move to compel the matter to arbitration, you would argue that the arbitration clause is unenforceable due to the fact that it's unequal, requires you to bear the costs of arbitration in excess of that which would be required in a civil case, etc.
Please feel free to call my office and I will provide you with a 15 minute free no obligation initial consultation.
Nevermind. I just reread your question and it appears that it was not an employment contract. Rather it appears that you paid them to provide you advertising services. In this case it depends on the contract and the actual arbitration provision. I would have to research whether this particular arbitration clause is enforceable under California law.
Are you saying that the judge in small claims court ordered that the case be arbitrated? Or did he simply dismiss your small claim.
Again, depending on your particular arbitration clause, there would be nothing stopping you from filing your claim in civil court. That would put the onus on your former advertising agency to then move to compel the civil case to arbitration. This would require that they hire an attorney to file the appropriate papers and they may not be willing to spend money on that.
You would then have more negotiating power to try and reach some sort of monetary settlement.
I am not your attorney and neither of my two posts in response to your question constitute legal advice and you should not rely on them as legal advice. I express no opinion on the strength of your claim and you should not rely on this post as legal advice because I have not reviewed the relevant contract or arbitration provision. This also confirms that I do not represent you and I will not be and have not taken legal action on your behalf. You should contact a attorney immediately to protect your legal rights and ensure that you do not miss any relevant statute of limitations.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
