Ferguson v. Countrywide
From wikilawschool.net. Wiki Law School does not provide legal advice. For educational purposes only.
Ferguson v. Countrywide | |
Court | 9th Circuit |
---|---|
Citation | 298 F.3d 778 |
Date decided | July 23, 2002 |
Facts
- Ms. Ferguson = plaintiff = "Ferguson" = employee
- Countrywide Credit Industries, Inc. = "Countrywide" = employer = Bank of America's mortgage unit as of 2024
- Countrywide hired Ferguson who signed a required arbitration agreement.
Procedural History
Ferguson sued Countrywide & her supervisor for sexual harassment, retaliation, & hostile-work environment.
Countrywide petitioned the court to compel arbitration.
The district court found the arbitration clause (which precluded jury, for example) to be un-conscionable. Thus, Countrywide lost.Issues
May a contractual provision be both a
to be un-enforceable?Arguments
Justice Pregerson argued in the 9th Circuit's holding that Countrywide's arbitration clause was substantially 1-sided.
Holding
Yes. A contractual provision may be un-enforceable only if it's both
- procedurally &
- substantively unconscionable.
Judgment
Affirmed.
Reasons
Usually, arbitration & bench trials tend to favor businesses.
Rule
Judge Pregerson: Procedural un-conscionability focuses on 2 factors:
- oppression &
- surprise.
Resources