The Court Of Appeal Distinguished Between The More Lenient Discovery Provisions In Vo And The Tougher Discovery Restrictions In Aixtron.
In Vo v. Technology Credit Union, H051619 (6th Dist. 2/4/25) (Greenwood, Grover, Danner), the California Court of Appeal reviewed an arbitration agreement signed by Thomas Vo, an employee of Technology Credit Union (TCU). After Vo was terminated, he filed a lawsuit against TCU, alleging various violations under the Fair Employment and Housing Act. TCU moved to compel arbitration based on the arbitration agreement, but the trial court found the agreement to be unconscionable, particularly due to its lack of provisions for third-party discovery, relying on Aixtron to justify the decision.
The Court of Appeal reversed the trial court's order, determining that the arbitration agreement was not unconscionable. The court held that the agreement provided adequate discovery, including the authority for the arbitrator to allow additional discovery if necessary. Despite concerns about third-party discovery, the court clarified that the arbitration agreement's incorporation of the JAMS Rules permitted the arbitrator to make decisions regarding the scope of discovery, thus ensuring Vo had sufficient access to necessary information for his claims.
COMMENT. Aixtron and Vo both addressed the availability of third-party discovery in arbitration. In Aixtron, the court emphasized that the arbitration agreement failed to incorporate California Arbitration Act provisions or any rules that would grant the arbitrator authority to compel discovery from nonparties. Specifically, the court found that the arbitrator did not have the power to issue subpoenas to third parties for prehearing discovery, and thus, the agreement could not support such a discovery request.