Romney v. Franciscan Med. Grp. (Summary)

EMPLOYMENT AGREEMENT

Romney v. Franciscan Med. Grp., No. 71625-5-I (Wash. Ct. App. Feb. 17, 2015)

The Court of Appeals of Washington upheld an arbitration provision in an employment contract between a defendant medical group and its former employees.

The medical group entered into employment contracts with three individuals, which included an agreement to arbitrate all employment-related disputes between the parties. The employees brought claims of wage violations on behalf of themselves and a class of physicians, medical assistants and nurse practitioners, and at the same time requested that the court find the arbitration provision unconscionable. The medical group moved to compel arbitration, but the trial court found that the contract was unconscionable and invalid.

The appellate court reversed and remanded the trial court’s opinion, determining that the arbitration provision should be upheld even if other specific provisions of the employment agreement are found to be unconscionable. The court found that while other unconscionable provisions may be severed from an employment contract, those provisions should not affect the underlying arbitration provision. Also, the arbitration provision itself was found not to be procedurally or substantively unconscionable, because the terms were not one-sided. The court further determined that in a class action suit such as this, the arbitration provisions can be imposed on class members who did not sign the agreement.