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Arbitration - Provision unconscionable: Valued Services of Kentucky, LLC v. Watkins (COA 6/19/2009)

By Michael Stevens

Valued Services of Kentucky, LLC v. Watkins
2008-CA-001204 06/19/2009 2009 WL 1705696 DR Pending

Opinion by Senior Judge Buckingham; Judges Caperton and Stumbo concurred.

The Court affirmed an order of the circuit court denying a motion to compel arbitration made by a check-cashing company and two of its employees on a false imprisonment action filed by appellee after an employee locked him in the business for over an hour when he told the employee he was unable to repay the loan on that day. The Court held that the arbitration provision was unconscionable because it encompassed an intentional tort with so little connection to the underlying agreement that it could not have been foreseen by appellee when he signed the agreement.

Full post as published by Kentucky Cases on September 20, 2009 (boomark / email).