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Thome, Stryker and Butterfield Prevail on Appeal to Supreme Court of Nevada in Case Involving Binding Arbitration Provision

May 29, 2015

Sheri Thome (Partner-Las Vegas), Eric Stryker (Of Counsel-Las Vegas) and Chad Butterfield (Associate-Las Vegas) prevailed on an interlocutory appeal of the trial court’s denial of a motion to compel arbitration. The case involved an employment agreement between an employer-physician group represented by Wilson Elser and one of its physician-employees, which contained a provision requiring that all disputes be resolved through binding arbitration. Following the employee’s termination, he filed an action in state court alleging claims against the employer-physician group for breach of contract, breach of the covenant of good faith and fair dealing, tortious discharge and civil conspiracy. The group moved to compel arbitration on the basis that the claims fell within the binding arbitration provision of the employment agreement. The trial court denied the motion on the basis of procedural and substantive unconscionability.   The Nevada Supreme Court reversed the trial court, holding that there was “only a small degee of evidence” regarding unconscionability, and finding that the offending provision could be severed, allowing the remaining agreement to stand.  

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