Business Law Topics: Unconscionable Contracts

Class Action Waiver Upheld; Court Rejects Argument That All Such Waivers Are Unconscionable

In some contracts, a party inserts a clause that prohibits the plaintiff from filing a class action claim – only individual claims are allowed.  In Walnut Producers of California v. Diamond Foods, Inc., a group of walnut growers challenged such a waiver on the ground that it was contained in a “contract of adhesion” and was unconscionable as a matter of law.