Blue Origin’s Arbitration Bid Fails at California Appeals Court

A California appeals court dealt a blow to Blue Origin LLC’s employment practices Friday after it agreed with a lower court’s refusal to compel arbitration in a lawsuit brought by a former senior director.

Blue Origin’s arbitration agreement is both procedurally and substantively unconscionable, rendering it unenforceable despite containing a severability clause, Justice Lee Smalley Edmon said in an opinion. California’s Court of Appeals denied Blue Origin’s petition to compel arbitration with Craig Stoker.

“The arbitration agreement is overbroad,” Edmon said, noting it required arbitration of “any claim” between Stoker and Blue Origin entities “whether or not such claims ...