Cocom v. Abm Aviation, Inc.
CourtCourt of Appeals for the Ninth Circuit
Date FiledJune 23, 2026
Docket25-3246
StatusPublished
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Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
ROBERT COCOM, on behalf of No. 25-3246
himself and others similarly situated,
D.C. No.
2:24-cv-08389-
Plaintiff - Appellee,
WLH-MAR
v.
ABM AVIATION, INC., OPINION
Defendant - Appellant,
and
DOES, 1 to 100, inclusive,
Defendant.
Appeal from the United States District Court
for the Central District of California
Wesley L. Hsu, District Judge, Presiding
Argued and Submitted February 13, 2026
Pasadena, California
Filed June 23, 2026
2 COCOM V. ABM AVIATION, INC.
Before: Richard C. Tallman, Lawrence VanDyke, and Eric
C. Tung, Circuit Judges.
Opinion by Judge VanDyke
SUMMARY *
Arbitration
In a putative wage and hour class action brought by
Robert Cocom against his former employer ABM Aviation,
Inc. (“ABM”), the panel reversed the district court’s
judgment that ABM could not enforce the Mutual
Arbitration Agreement (“MAA”) the parties signed when
Cocom was first employed by ABM, and remanded for
further proceedings.
The district court concluded that the MAA was
procedurally and substantively unconscionable based on the
analysis in Cook v. University of Southern California, 321
Cal. Rptr. 3d 336 (Cal. Ct. App. 2024). The panel held that
because the challenged provisions of the MAA were
distinguishable in important ways from the provisions held
unconscionable in Cook, the district court erred in relying on
Cook.
The panel first addressed substantive
unconscionability. In Cook, the court found the arbitration
agreement’s scope, duration, and lack of mutuality to be
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
COCOM V. ABM AVIATION, INC. 3
substantively unconscionable. Here, the MAA was limited
to employment-related disputes, making this case
distinguishable from Cook and from the California Court of
Appeal’s more recent decision in Stoker v. Blue Origin, LLC,
343 Cal. Rptr. 3d 756 (Cal. Ct. App. 2026). Second, because
the MAA’s more limited scope inherently limited the
agreement’s duration, the MAA’s duration was not
indefinite and not substantively unconscionable. Third,
Cook’s lack-of-mutuality analysis was distinguishable
largely because of the MAA’s narrower scope.
Although the district court did not reach the issue, the
panel concluded that the MAA’s bar on using arbitration
awards for preclusive or precedential effect was not
substantively unconscionable.
Finally, the panel held that even if the MAA’s waivers
of representative actions under California’s Private
Attorneys General Act or of public injunctive relief were
substantively unconscionable, those provisions would be
severable. Accordingly, the panel concluded that it need not
address whether either waiver rose to the level of substantive
unconscionability.
Because the panel concluded that most of the MAA’s
challenged provisions were not substantively
unconscionable, and that any remaining unconscionable
provisions could be properly severed, Cocom’s
unconscionability defense failed. Because the lack of
substantive unconscionability was dispositive, the panel held
that it need not address Cocom’s arguments about procedural
unconscionability.
4 COCOM V. ABM AVIATION, INC.
COUNSEL
Jordan D. Bello (argued), Matthew J. Gustin, Jeffrey M.
Schwartz, Joseph Lavi, Brett Szmanda, and Vincent
Granberry, Lavi & Ebrahimian LLP, Beverly Hills,
California, for Plaintiff-Appellee.
Daniel F. Fears (argued), Brian R. Shaw, Sean A. O'Brien,
and Laura Fleming, Payne & Fears LLP, Irvine, California,
for Defendant-Appellant.
OPINION
VANDYKE, Circuit Judge:
Plaintiff-appellee Robert Cocom filed a putative wage
and hour class action against his former employer,
defendant-appellant ABM Aviation, Inc. (“ABM”). ABM
moved to compel arbitration of Cocom’s claims under an
arbitration agreement the parties signed when Cocom was
first employed by the company. The district court ruled that
ABM could not enforce the arbitration agreement,
concluding that it was procedurally and substantively
unconscionable based on the analysis in Cook v. University
of Southern California, 321 Cal. Rptr. 3d 336 (Cal. Ct. App.
2024). Because the challenged provisions of the arbitration
agreement here are distinguishable in important ways from
the provisions held unconscionable in Cook, we reverse and
remand for further proceedings consistent with this opinion.
COCOM V. ABM AVIATION, INC. 5
I. Background
A.
ABM offers commercial janitorial services to airports.
Cocom worked for ABM as an airport janitor between
August 2020 and June 2024. When Cocom was hired, he
signed a three-page Mutual Arbitration Agreement
(“MAA”).
The MAA establishes arbitration as “the exclusive
remedy for any ‘Covered Claim.’” Covered claims are
defined as
any claim that the Company has against me
or that I have against the Company, its past,
present, and future parent(s), subsidiaries,
affiliates, and/or their respective past,
present, and future officers, directors and/or
employees, including but not limited to
claims arising and/or relating in any way to
my hiring, my employment or association
with, my compensation, and/or the end of my
employment with, the Company.
The MAA goes on to enumerate specific claims covered:
Covered Claims include, but are not limited
to, any claim for breach of contract, for any
provision of federal or state labor code or a
Wage Order, for unpaid fees, expenses,
wages, or overtime, for unpaid compensation
or penalties for missed meal or rest breaks,
for wrongful termination, for unfair
competition, for discrimination, harassment,
or unlawful retaliation, for violation of the
6 COCOM V. ABM AVIATION, INC.
Uniformed Services Employment and
Reemployment Rights Act, for violation of
the Fair Labor Standards Act, or any federal,
state, or local laws to the full extent permitted
by applicable federal law after the application
of Federal Arbitration Act … preemption
principles.
Claims “currently pending in litigation” are excluded from
the definition of “Covered Claims.” The MAA designates
the “Employment Arbitration Rules and Mediation
Procedures” promulgated by the American Arbitration
Association (“AAA”) as the rules to govern any resulting
arbitration.
Other MAA provisions relevant here include a waiver of
the right to bring “class, collective, or representative
proceeding[s],” including those “under California’s Private
Attorneys General Act of 2004” (“PAGA”). The agreement
also contains a severability provision: “If any provision of
this Agreement is adjudged to be void or otherwise
unenforceable by a court …, the parties agree that such
provision may be severed ….”
B.
In August 2024, Cocom filed a putative class action in
state court alleging wage and hour violations. ABM
removed the suit to federal court under the Class Action
Fairness Act, and then filed a motion to compel arbitration
and strike Cocom’s class claims.
The district court denied ABM’s motion after finding the
arbitration agreement unconscionable. Pointing to the fact
that the MAA was a contract of adhesion and Cocom’s
allegations that he was rushed through the signing process,
COCOM V. ABM AVIATION, INC. 7
the district court concluded that the agreement was
procedurally unconscionable. The district court concluded
that four MAA provisions rendered the agreement
substantively unconscionable as well. Relying heavily on
the California Court of Appeal’s decision in Cook, 321 Cal.
Rptr. 3d 336, the district court interpreted the “including but
not limited to” language in the MAA’s definition of covered
claims to mean that the MAA applied to any claims
whatsoever, even those with no relation to Cocom’s
employment. Under Cook, the district court reasoned, such
a broad scope rendered the agreement substantively
unconscionable.
The district court’s interpretation of the agreement’s
scope rendered two other provisions of the agreement
unconscionable as well: (1) the MAA’s duration, which the
district court found to be indefinite, and (2) the MAA’s lack
of mutuality—third parties, such as “parent(s), subsidiaries,
affiliates, … officers, directors, and/or employees,” as well
as “client(s) and/or vendor(s) of the Company,” could all
compel Cocom to arbitrate, but Cocom would have a harder
time compelling them to arbitrate. Finally, the district court
found that the MAA’s bar on public injunctive relief
contravened California law and was therefore substantively
unconscionable as well.
Because it found so many provisions substantively
unconscionable, the district court believed the MAA to be so
“tainted with illegality” that it declined to sever any of the
offending provisions, and instead refused to enforce the
agreement in its entirety. Cook, 321 Cal. Rptr. 3d at 349–
50). ABM appealed.
8 COCOM V. ABM AVIATION, INC.
II. Jurisdiction and Standard of Review
We have jurisdiction under 9 U.S.C. § 16(a)(1)(B). See
Van Dusen v. Swift Transp. Co., 830 F.3d 893, 897 (9th Cir.
2016). We review a district court’s denial of a motion to
compel arbitration de novo, including the district court’s
rulings on the scope and validity of an arbitration agreement.
Cape Flattery Ltd. v. Titan Mar., LLC, 647 F.3d 914, 917
(9th Cir. 2011). A district court’s decision not to sever
unconscionable provisions in an arbitration agreement is
reviewed for abuse of discretion. Lim v. TForce Logistics,
LLC, 8 F.4th 992, 999 (9th Cir. 2021).
III. Discussion
The FAA recognizes state law contract defenses to the
enforcement of an arbitration agreement. 9 U.S.C. § 2.
Unconscionability is one such defense. See Armendariz v.
Found. Health Psychcare Servs., Inc., 6 P.3d 669, 690 (Cal.
2000). Proving an unconscionability defense requires
establishing both procedural and substantive
unconscionability. Id. California employs a sliding scale
approach to the two types of unconscionability: “a greater
showing of procedural or substantive unconscionability will
require less of a showing of the other” to establish the
defense. Ajamian v. CantorCO2e, L.P., 137 Cal. Rptr. 3d
773, 793 (Cal. Ct. App. 2012). The party opposing
arbitration “bears the burden of establishing a defense to the
agreement’s enforcement.” Tiri v. Lucky Chances, Inc., 171
Cal. Rptr. 3d 621, 627 (Cal. Ct. App. 2014).
We address substantive unconscionability first. The
district court found four MAA provisions substantively
unconscionable: (1) the scope of the definition of “covered
claims,” (2) the duration of the contract, (3) the supposed
lack of mutuality, and (4) the bar on public injunctive relief.
COCOM V. ABM AVIATION, INC. 9
The district court declined to address whether two other
provisions challenged by Cocom were also unconscionable:
provisions barring (1) representative PAGA actions and
(2) waiving employees’ ability to use an arbitration award
for preclusive or precedential effect. Because we conclude
that most of the MAA’s challenged provisions are not
substantively unconscionable, and that any remaining
unconscionable provisions can be properly severed,
Cocom’s unconscionability defense fails. The lack of
substantive unconscionability is dispositive, so we need not
address Cocom’s arguments about procedural
unconscionability. Armendariz, 6 P.3d at 690.
A. Cook v. University of Southern California
Because both the district court and Cocom rely heavily
on the California Court of Appeal’s decision in Cook v.
University of Southern California, 321 Cal. Rptr. 3d 336, we
discuss that case before turning to the provisions of the
MAA.
In Cook, the plaintiff employee signed an arbitration
agreement with the University of Southern California that
provided for arbitration “of all claims, whether or not arising
out of Employee’s University employment, remuneration or
termination, that Employee may have against the University
or any of its related entities, including … officers, trustees,
administrators, employees or agents, in their capacity as such
or otherwise.” Id. at 340. The agreement further elaborated:
“The claims covered by this Agreement include, but are not
limited to,” a long list of claims related to employment (for
instance, “claims for wages or other compensation due”) and
claims unrelated to employment (most notably, “claims for
personal, physical, or emotional injury, or for any tort”). Id.
The agreement “survive[d] the termination of Employee’s
10 COCOM V. ABM AVIATION, INC.
employment” and lasted until “revoked or modified in a
written document … signed by the President of the
University.” Id.
The Cook court found the agreement’s scope, duration,
and lack of mutuality to be substantively unconscionable.
On scope, the court read “whether or not arising out of
Employee’s University employment, remuneration or
termination” to mean that the agreement covered any claim
the plaintiff could bring, whether or not related to
employment. Id. 344–46. Because “USC appear[ed] to
concede” that such a scope would be “unconscionably
broad,” the court concluded that the agreement’s coverage
of claims unrelated to employment such as “defamatory
statements” was substantively unconscionable. Id. at 344,
346.
Likewise, the court found the agreement’s indefinite
duration—“surviv[ing] unless and until Cook and USC’s
president specifically terminate the agreement in a
writing”—to be substantively unconscionable as well. Id. at
347. Because the court had concluded that the agreement
covered claims unrelated to Cook’s employment, covered
claims could arise long after Cook stopped working for the
University. The court referenced the trial court’s concern
that a tort claim for being “the victim of a botched surgery
in a USC hospital in 15 years” would still be covered. Id. at
341.
Finally, the court found that the agreement lacked
mutuality because third party beneficiaries could easily
invoke it against Cook, but Cook would have a harder time
invoking the agreement against third parties. Id. at 347–49.
This was so, the court concluded, because “nonsignatories
may enforce an arbitration agreement against a party to the
COCOM V. ABM AVIATION, INC. 11
agreement simply by showing they are intended third party
beneficiaries.” Id. at 349. But “for Cook to enforce the
arbitration agreement against USC’s agents or employees as
third party beneficiaries, she would have [had] to show they
actually accepted a benefit under the agreement”—a more
difficult burden. Id. at 349. While the court acknowledged
that including third parties is not unconscionable on its own,
USC failed to justify “why Cook should be required to give
up the ability to ever bring claims in court against a USC
employee that [were] unrelated to USC or her employment
there.” Id. at 348. That treatment was sufficiently “one-
sided” to rise to the level of substantive unconscionability.
Id.
The Cook court determined that the combination of the
three substantively unconscionable provisions meant the
trial court had not abused its discretion in ruling the whole
agreement unenforceable under California law. Id. at 349–
50. In the court’s view, the unconscionable provisions
sufficiently permeated the contract’s central purpose of
“requir[ing] Cook to arbitrate claims that d[id] not relate to
her employment or her employer” to support the district
court’s refusal to sever the unconscionable provisions. Id. at
350.
B. Scope
The MAA here is limited to employment-related
disputes, making this case distinguishable from Cook and
from the California Court of Appeal’s more recent decision
in Stoker v. Blue Origin, LLC, 343 Cal. Rptr. 3d 756 (Cal.
Ct. App. 2026), which applied Cook to a similarly worded
arbitration agreement. And even if the MAA were not so
limited, the close factual similarity to Ayala-Ventura v.
Superior Court, 342 Cal. Rptr. 3d 500 (Cal. Ct. App. 2026),
12 COCOM V. ABM AVIATION, INC.
in which the court found that a similarly worded agreement’s
scope was not substantively unconscionable, suggests that
the scope of the MAA’s coverage would not rise to the level
of substantive unconscionability.
As an initial matter, the MAA lacks the language
underlying the Cook court’s interpretation of the
agreement’s scope. There, the agreement explicitly covered
claims “whether or not arising out of [Cook’s] University
employment, remuneration or termination.” Cook, 321 Cal.
Rptr. 3d at 340. 1 The only indication that the MAA could
be read in similarly broad fashion is the “including but not
limited to” language in the definition of covered claims. The
district court read that phrase to mean that the MAA’s scope
is completely unlimited (other than claims explicitly
excepted). We reject that reading.
The interpretive principle of ejusdem generis indicates
that “any claim” in the MAA refers only to employment-
related claims. “Under the principle of ejusdem
generis …, where specific words follow general words in a
contract, the general words are construed to embrace only
things similar in nature to those enumerated by the specific
words.” Nygard, Inc. v. Uusi-Kerttula, 72 Cal. Rptr. 3d 210,
223 (Cal. Ct. App. 2008) (internal quotation marks omitted).
“‘Including, but not limited to’ is a phrase of enlargement
but not necessarily a phrase without limits. While the
proviso ‘including, but not limited to’ connotes an
1
Even the language from Cook would not dispositively settle the scope
question. Based on principles of contract interpretation, the court in
Ayala-Ventura interpreted the arbitration agreement at issue there to be
limited to employment-related disputes even though the agreement used
language nearly identical to Cook, covering claims “whether or not
arising out of [Ayala-Ventura]’s employment or the termination of
employment.” 342 Cal. Rptr. 3d at 512–13 (alteration in original).
COCOM V. ABM AVIATION, INC. 13
illustrative listing, the specific examples listed may restrict
the meaning of the defined term.” Brown v. City of
Inglewood, 570 P.3d 885, 892 (Cal. 2025) (citation
modified). The general terms in the MAA––“all disputes”
and “any claim” are narrowed by the subsequent list of
specific terms: “my hiring, my employment, my
compensation, and/or the end of my employment, with the
Company,” as well as “any claim for breach of contract, for
any provision of federal or state labor code or a Wage Order,
for unpaid fees, expenses, wages, or overtime,” and the like.
The employment-related nature of the enumerated terms
restricts the meaning of the more general terms to encompass
only employment-related disputes.
An equivalent ejusdem generis analysis would not have
been possible in Cook. The enumeration of covered claims
there included claims unrelated to employment—most
notably, a general reference to tort claims. See Cook, 321
Cal. Rptr. 3d at 340. It was the prospect of precisely those
sorts of claims––tort suits unrelated to employment––that
loomed large in the Cook court’s analysis: the examples it
relied on to illustrate the agreement’s unconscionable
breadth were tort suits unrelated to employment. See Cook,
321 Cal. Rptr. 3d at 341 (referencing the district court’s
example of needing to arbitrate claims for “an injury related
to USC” such as a “botched surgery in a USC hospital in 15
years”); id. at 346 (noting that the plaintiff would have to
arbitrate defamation suits). The same was true in Stoker,
which applied Cook to conclude that a similarly worded
agreement unconscionably applied to claims unrelated to
employment. 343 Cal. Rptr. 3d at 760–61. The enumeration
of covered claims in Stoker, as in Cook, included tort claims,
and the court used torts unrelated to employment to illustrate
the agreement’s unconscionable breadth. Id. at 760
14 COCOM V. ABM AVIATION, INC.
(arbitration agreement’s enumeration of covered claims
included tort claims), id. at 767 (illustrating finding that
arbitration agreement was unconscionably broad by noting
that the plaintiff’s claims would be covered if he “were to be
injured in an automobile accident with another Blue Origin
employee years after his employment ended, or if his house
were damaged by debris from a Blue Origin rocket”).
Nothing in the MAA’s enumeration of covered claims
requires that the MAA covers tort claims—or any other
claims––unrelated to employment. Applying the principle
of ejusdem generis therefore distinguishes this case from
Cook and Stoker.
California contract interpretation principles likewise
compel the narrower reading. Under California law,
“[w]here a contract is susceptible to two interpretations, one
which renders it valid and the other which renders it void, a
court should select the interpretation that makes the contract
valid.” Ramirez v. Charter Commc’ns, Inc., 551 P.3d 520,
540 (Cal. 2024); see Cal. Civ. Code § 1643. Cocom cites the
conflicting rule that ambiguities in a contract of adhesion are
construed against the drafter. Cal. Civ. Code § 1654. But
California law establishes a hierarchy for the conflicting
rules of construction: interpreting a contract against the
drafter should only be done “[i]n cases of uncertainty not
removed by the preceding rules.” Id. One of those
“preceding rules” is the instruction to favor interpretations
that render the contract legal. See id. § 1643; Ayala-Ventura,
342 Cal. Rptr. 3d at 513 (applying the same analysis to
conclude that construing an agreement to avoid illegality
takes priority over construing an agreement against the
drafter). Because the MAA can be construed to avoid
illegality, the conflicting rule Cocom points to is
inapplicable.
COCOM V. ABM AVIATION, INC. 15
The context of other MAA provisions further supports
the narrower reading. Under California law, other
provisions from a contract may be used to shed light on
ambiguous language. EFund Cap. Partners v. Pless, 59 Cal.
Rptr. 3d 340, 347 (Cal. Ct. App. 2007) (“[L]anguage in a
contract must be interpreted as a whole ….” (citation
omitted)). Here, the MAA dictates that arbitrations are to be
governed by the “AAA Employment Arbitration Rules and
Mediation Procedures.” Those rules are applied “in the
interest of providing an appropriate forum for the resolution
of employment disputes.” Am. Arb. Ass’n, Employment
Arbitration Rules and Mediation Procedures 7 (2016)
(emphasis added). To arbitrate under those rules, an
employer must have “an employment [alternate dispute
resolution] plan” and provide the AAA a copy of “the
employment dispute resolution plan.” Id. (emphases added).
The rules also provide that “[n]eutral arbitrators serving
under these rules shall be experienced in the field of
employment law,” and the appointment of an arbitrator
under the rules involves the AAA sending the parties a list
of names chosen from the “Employment Dispute Resolution
Roster.” Id. at 14–15. Only if ABM intended the MAA to
be limited to employment-related disputes does it make
sense for the MAA to uniformly apply rules designed for
employment disputes governed by employment dispute
resolution plans to be ruled on by arbitrators with expertise
in employment law.
Analyzing context differently, the district court
contended that the MAA’s carveout for claims “currently
pending in litigation” would be surplusage if the MAA only
covered employment-related claims because “no
employment-related claims could be pending prior to an
employee signing the agreement during their onboarding
16 COCOM V. ABM AVIATION, INC.
process.” But that is incorrect: even under the narrower
interpretation we adopt, the carveout is not surplusage.
Someone previously employed by ABM who was later
rehired could have employment-related litigation pending
when they signed the MAA. Alternatively, litigation
concerning hiring—one of the disputes listed in the MAA’s
enumeration of covered claims—could be pending by the
time a prospective employee signed the MAA. So the
carveout for pending litigation does not support the district
court’s broader reading of the MAA’s scope.
Even if the district court had correctly interpreted the
MAA’s scope, it still would have erred in assuming that the
definition of covered claims automatically rose to the level
of substantive unconscionability. The California Court of
Appeal’s decision in Ayala-Ventura directly rebuts that
conclusion. 342 Cal. Rptr. 3d 500. There, the court noted
that “the Cook court did not conclude an arbitration
agreement covering all claims including those unrelated to
employment is per se unconscionable.” 342 Cal. Rptr. 3d at
513–14. The Cook court did not need to address the issue
categorically because the employer there “appear[ed] to
concede” that an agreement covering claims unrelated to
employment would have been “unconscionably broad,” a
concession ABM has not made here. Cook, 321 Cal. Rptr.
3d at 344.
While the court in Ayala-Ventura concluded that the
agreement at issue there was limited to employment-related
disputes, it also explained that even if the agreement reached
claims unrelated to employment, its scope would not be
unconscionably broad. 342 Cal. Rptr. 3d at 513–14. Cook
was distinguishable, the court found, because the Cook
agreement “was unconscionable in part because of the
multifarious ways in which a claim against USC ‘completely
COCOM V. ABM AVIATION, INC. 17
unrelated to [Cook’s] employment’ could arise.” Id. at 514
(alteration in original) (quoting Cook, 321 Cal. Rptr. 3d at
341). In contrast, the Ayala-Ventura court was “hard-
pressed to discern how a similarly vast range of claims
completely unrelated to Ayala-Ventura’s employment could
arise” given that the employer “solely provide[d]
commercial janitorial services.” Id. So too here: ABM, like
the employer in Ayala-Ventura, provides commercial
janitorial services. This case is therefore much more
analogous to Ayala-Ventura than to Cook when it comes to
the potential for claims unrelated to employment to arise,
and Ayala-Ventura indicates that the scope of the MAA
would not be unconscionable even under the district court’s
broader reading (which we do not accept in any event).
C. Duration
The district court, again applying Cook, found the MAA
to have an indefinite duration and concluded that such a
duration was substantively unconscionable. Cook, 321 Cal.
Rptr. 3d at 347. But this conclusion was related to the
erroneous conclusion that the MAA broadly covers any
dispute imaginable.
The fact that the MAA is limited to employment-related
disputes imposes an inherent limitation on the agreement’s
duration. Because the Cook court read the agreement there
as applying to all claims, even those unrelated to
employment, it was realistic for the court to assume that
covered claims might arise many years after Cook’s
employment ended. 321 Cal. Rptr. 3d at 347. But
employment-related claims––the only ones covered by the
MAA––stop accruing when the employment relationship
ends. After that, the relevant statute of limitations for each
potential claim would naturally limit the period in which
18 COCOM V. ABM AVIATION, INC.
covered claims could be brought. Because the MAA’s more
limited scope inherently limits the agreement’s duration, the
MAA’s duration is not indefinite and not substantively
unconscionable.
D. Mutuality
The third aspect of the MAA the district court found
substantively unconscionable was the lack of mutuality
arising from the MAA’s requirement that Cocom arbitrate
claims against ABM’s “past, present, and future parent(s),
subsidiaries, affiliates, and/or their respective past, present,
and future officers, directors, and/or employees,” as well as
ABM’s “client(s) and/or vendor(s).” Citing Cook, the
district court found an unconscionable lack of mutuality
because the listed third parties “could easily enforce the
agreement against” Cocom, but Cocom “would need to show
that the entities actually accepted a benefit under the
agreement” to enforce it against them. But Cook’s lack-of-
mutuality analysis is again distinguishable, and again largely
because of the MAA’s narrower scope.
Cook explicitly acknowledged that an arbitration
agreement “cannot be unconscionable simply because it
provides benefits to third parties.” Id. at 348. As with
duration, the lack of mutuality Cook found substantively
unconscionable was predicated on the court’s conclusion
that the agreement applied to all claims, regardless of
whether they were related to Cook’s employment. See id.
(“No explanation [was] offered as to why Cook should [have
been] required to give up the ability to ever bring claims in
court against a USC employee that are unrelated to USC or
her employment there.” (emphasis added)). Unlike the
claims Cook found to be covered by the agreement,
employment-related claims have an inherent asymmetry: an
COCOM V. ABM AVIATION, INC. 19
employee is far more likely to sue the employer and third
parties––often many at a time, as Cocom has done here—
rather than the other way around.
Ayala-Ventura is once again instructive. The court there
distinguished Cook’s mutuality analysis, finding the
inclusion of third parties not substantively unconscionable
because the agreement at issue limited third parties’ ability
to invoke the arbitration agreement “to claims against [the
employer’s] employees or agents in their capacity as such,”
meaning that “[a]ny claims Ayala-Ventura may have [had]
against employees or agents unrelated to their role” were not
covered by the agreement. 342 Cal. Rptr. 3d at 515. The
MAA does not explicitly include the same express
limitation, but the fact that the MAA is limited to
employment-related claims achieves a similar result. Just as
in Ayala-Ventura, claims Cocom may have against third
parties “unrelated to their role” in ABM would not be
covered by the MAA. Id. Because of the MAA’s more
limited scope, the lack-of-mutuality analysis here is much
more similar to Ayala-Ventura than to Cook, and any lack of
mutuality does not rise to the level of substantive
unconscionability.
E. Preclusive and Precedential Effect
Although the district court did not reach the issue,
Cocom also challenges the MAA provision that “any
arbitration award shall have no preclusive effect as to issues
or claims in any other dispute or arbitration proceeding and
that arbitrators are barred from giving prior arbitration
awards precedential effect.”
The provision merely restates California’s default rule
on the preclusive effect of arbitration awards: “a private
arbitration award, even if judicially confirmed, may not have
20 COCOM V. ABM AVIATION, INC.
nonmutual collateral estoppel effect under California law
unless there was an agreement to that effect in the particular
case.” Vandenburg v. Superior Ct., 982 P.2d 229, 234 (Cal.
1999). Cocom does not point to any authority to suggest that
applying California’s default rule is unconscionable. Cocom
also fails to provide any support for or meaningfully develop
his argument that employees have a “right” to use arbitration
awards as precedent. We conclude that the MAA’s bar on
using arbitration awards for preclusive or precedential effect
is not substantively unconscionable.
F. PAGA Actions and Public Injunctive Relief
Even if the MAA’s waivers of representative PAGA
actions or of public injunctive relief were substantively
unconscionable, those provisions would be severable, so we
do not need to address whether either waiver rises to the level
of substantive unconscionability. 2
Under California law, the first step of the severance
analysis is to assess whether “the central purpose of the
contract is tainted with illegality.” Ramirez, 551 P.3d at 546
(quoting Armendariz, 6 P.3d at 696). If not, the court should
ask “whether the contract’s unconscionability can be cured
purely through severance or restriction of its terms, or
whether reformation by augmentation is necessary.” Id.
Severance is the preferred course if no augmentation is
required, but the court should still ask whether “severance of
the unconscionable terms would function to condone an
illegal scheme” adopted in a “systematic effort to impose
arbitration on the weaker party not simply as an alternative
to litigation, but to secure a forum that works to the stronger
2
We also need not resolve whether the MAA does, in fact, bar all public
injunctive relief, a point which the parties dispute.
COCOM V. ABM AVIATION, INC. 21
party’s advantage.” Id. at 547. Courts should treat explicit
severability clauses “as an expression of the parties’ intent
that an agreement curable by removing defective terms
should otherwise be enforced.” Id. 3
The parties’ “central purpose” in agreeing to the MAA
was to arbitrate employment-related claims. The waivers of
representative PAGA suits and of public injunctive relief are
therefore “collateral to the contract’s main purpose.” Id. So
even if those waivers violate California law, severing them
would require no “augmentation” of the contract. Id. And
the MAA does not suggest any “systematic effort” to impose
arbitration as anything more than “an alternative to
litigation.” Id. Moreover, severing the two waivers—again,
assuming without deciding that they are substantively
unconscionable––would vindicate the intent of the parties as
expressed in the MAA’s severability provision. Because the
waivers of representative PAGA actions and of public
injunctive relief could properly be severed if
unconscionable, neither provision suffices to create a
workable unconscionability defense against enforcing the
MAA to compel arbitration of Cocom’s claims.
3
The district court’s severability analysis, which cited the severability
analysis from Cook, 321 Cal. Rptr. 3d 349–50, was premised on
erroneously finding the MAA’s scope, duration, and lack of mutuality to
be substantively unconscionable. Because Cook’s analysis of each of
those provisions is distinguishable, we conclude that the district court’s
ultimate refusal to sever unconscionable provisions meets the abuse of
discretion standard applicable to severability determinations. Lim, 8
F.4th at 999; see Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 405
(1990) (“A district court would necessarily abuse its discretion if it based
its ruling on an erroneous view of the law or on a clearly erroneous
assessment of the evidence.”). We therefore reconduct the severability
analysis with respect to the MAA’s waiver of representative PAGA
actions and of public injunctive relief.
22 COCOM V. ABM AVIATION, INC.
IV.
We REVERSE the judgment of the district court and
REMAND for further proceedings consistent with this
opinion.