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 the other party, 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. 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 aid them $4,500.00 and want my money back. I am trying to file a motion to vacate the judgment based on the fact the contract has this self-serving clause for them to be able to sue in Small claims and for me - I am prevented. Is there supporting authority for my position?
1 Answer from Attorneys
First of all, your failure to read the contract is not grounds for you to get out of it.
I don't know what your claim against the advertising agency is, but at least one court has held that an arbitration clause in an employment contract is unconscionable, and the 9th Circuit Court of Appeals has held that an arbitration clause will not be enforced in discrimination and civil rights cases.
A motion to vacate is not used because you think the judge is wrong. It is used in small claims to set aside default rulings. As a plaintiff you have no right to appeal a small claims decision, which is why small claims is a bad idea in your situation.
You need to talk to an attorney at length and go over the issues in your case.