It is no secret that California is no friend to arbitration agreements. As the United States Supreme Court noted in its 2011 opinion in AT&T Mobility LLC v. Concepcion, “California’s courts have been more likely to hold contracts to arbitrate unconscionable than other contracts,” despite directives from the High Court that arbitration agreements must be placed “upon the same footing as other contracts.”
Not to be outdone by the courts, the California Legislature decided to weigh in on the ongoing battle over arbitration agreements with the introduction of Assembly Bill 465 (“AB 465”) earlier this year.