California Supreme Court

Fuentes v. Empire Nissan

February 2, 2026

Summary

The court held that illegible formatting may establish procedural, but not substantive, unconscionability because substantive unconscionability concerns the fairness of contractual terms rather than their presentation. It further held that the lower court improperly favored arbitration when interpreting related confidentiality agreements and lacked an adequate factual basis for determining whether those agreements created a one-sided exception to arbitration. The judgment was reversed and remanded for further proceedings, including consideration of the confidentiality agreements and Fuentes’s contract-formation arguments.