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.