AutoNation Revives Contract Question In Racial Bias Lawsuit

It’s too early to tell whether an alleged arbitration agreement between the former general manager of a Houston car dealership and his ex-employer is unconscionable, and thus unenforceable, the Texas Supreme Court said.

Under Texas law, unconscionable contracts are unenforceable under the theory that “courts should not enforce a transaction so one-sided, with so gross a disparity in the values exchanged, that no rational contracting party would have entered the contract,” said Justice Debra H. Lehrmann, who authored the opinion.

But the Texas high court held that it was too early for it, or any other court, to assess whether ...