Court of Appeal: Arbitration Agreement Valid Even Without AAA Rules Attached

The Court of Appeal held that First Republic Bank's arbitration agreement was not "unconscionable" because the bank did not attach the AAA dispute resolution rules that govern the arbitration proceedings.  The court distinguished prior cases that had held agreements invalid and mentioned the absence of attached rules.  

The court's analysis suggests the following:
- It's important to attach special arbitration rules if the arbitration agreement is in conflict with those rules - so the employee can see the effect of the agreement on the rules.
- It is not necessary to attach third party rules such as AAA and JAMS that contain employee-friendly provisions in them and do not violate California courts' requirements for arbitration proceedings.
- It's important so specifically identify what rules will apply, and at least provide Internet links so the employee can find them.
- If the employee is not given time to review the arbitration agreement before signing, it's more important to attach the rules.

That said,  after this case, I don't think courts will invalidate otherwise good arbitration agreements based on failing to attach the third party rules.

The case is Peng v. First Republic Bank and the decision is here.