Smith v. JEM Group, Inc., No. 11-35964 (9th Cir. 2013)Annotate this Case
Plaintiff filed a class action complaint against JEM, a "back-end" debt-relief company, and others, alleging breach of fiduciary duty, unjust enrichment, aiding and abetting, civil conspiracy, and breach of Washington consumer protection statutes. On appeal, JEM appealed from the district court's denial of its motion to compel arbitration. The court concluded that the district court correctly decided that it, rather than an arbitrator, should decide whether the arbitration clause in the attorney retainer agreement was unconscionable. The court also concluded that the district court properly decided, using non-preempted Washington law, that the arbitration clause was unenforceable. Accordingly, the court affirmed the judgment of the district court.