The LA Times is reporting that Uber has lost its bid for arbitration in a suit brought by its drivers. According to the article, a federal judge in San Francisco found that the arbitration clauses in the 2013 and 2014 Uber contracts with its drivers unenforceable because they “are both procedurally and substantively unconscionable.” The reasons for the judge’s conclusion are simple. The arbitration opt-out clause was on the second to last page of a long agreement and not set off from the densely packed text surrounding it. Additionally to opt-out a driver was required to hand-deliver a note to Uber or send a note via overnight delivery. According to the article, the judge was applying California law.
Naturally, Uber plans to appeal. And if it loses at the 9th Circuit, expect an appeal to the Supreme Court.
h/t – Jean Sternlight