Altshuler v. Space Exploration Technology Corporation
2:25-cv-00831
W.D. Wash.Jun 11, 2025Background
- Plaintiff Douglas Altshuler filed suit against Space Exploration Technology Corporation (SpaceX) in the Western District of Washington.
- SpaceX moved to compel arbitration and to stay the civil proceeding, citing a signed employment arbitration agreement.
- Altshuler argued the agreement was unenforceable due to ambiguity, procedural, and substantive unconscionability.
- The arbitration agreement referenced and incorporated the JAMS Employment Arbitration Rules, accessible via website link.
- Altshuler’s response to the motion was deemed untimely, but even if considered, the Court found his opposition unpersuasive.
- The Court addressed arguments regarding ambiguity, the opportunity to review terms, and the confidentiality provisions in the arbitration agreement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Ambiguity of Arbitration Terms | Agreement is ambiguous; irreconcilable provisions. | Provisions address different conduct (agency vs. court). | No ambiguity; agreement enforceable by its plain terms. |
| Procedural Unconscionability | Lacked meaningful choice; insufficient review time. | Plaintiff had two weeks to review and consult counsel. | No procedural unconscionability. |
| Substantive Unconscionability | Confidentiality provision is overly strict. | Agreement allows exceptions as required by law/JAMS Rules. | Confidentiality provisions are not unconscionable. |
| Validity of Arbitration Agreement | Did not recall agreeing; unaware of terms. | Evidence shows Plaintiff signed agreement via AdobeSign. | Plaintiff’s lack of recall does not rebut evidence. |
Key Cases Cited
- Burnett v. Pagliacci Pizza, Inc., 470 P.3d 486 (Wash. 2020) (meaningful choice is the key factor in procedural unconscionability)
- Adler v. Fred Lind Manor, 103 P.3d 773 (Wash. 2004) (one week is ample opportunity to review arbitration agreement)
- Phillips v. Swedish Health Servs., 567 P.3d 625 (Wash. Ct. App. 2025) (confidential arbitration provision not substantively unconscionable if law provides contrary)
