Judge Rules American Apparel Agreement Unconscionable

Judge Rules for H&W Client, Finding That American Apparel’s Employment Agreement is Unconscionable

Heimanson and Wolf was successful in keeping their client’s claims of harassment and abuse against Dov Charney and American Apparel in a public forum.

In what may be the first precedent of its kind, Heimanson & Wolf successfully argued in court that American Apparel’s mandatory arbitration agreement is illegal. In siding with our client, Judge Steven Kliefied of the Los Angeles Superior Court ruled that the mandatory arbitration agreement could not be enforced because the confidentiality provision requiring Heimanson & Wolf’s client not to publicly disparage American Apparel was unconscionable and could not be severed from the agreement without rewriting it. The ruling means that Heimanson & Wolf’s client will be able to pursue his claims that American Apparel’s CEO, Dov Chareny, harassed him, choked him, and tried to rub dirt in his face, in an open and public forum.

The ruling may further pave the way for other American Apparel employees, who have signed the same agreement, to air their grievances in a public forum without the fear of counterclaims and retribution by American Apparel.