DevelopingN.D. Cal. · 2025
Rios v. HRB Digital LLC
No. 3:25-cv-03530 (Chen, J.)
- Question
- Whether a bellwether-and-batching protocol paired with an asymmetrical tolling provision is enforceable.
- Holding
- Motion to compel arbitration denied. The clause was procedurally unconscionable — a non-negotiable form contract presented in tax season with an opt-out buried in a long agreement and requiring renewed annual action — and substantively unconscionable, because the tolling provision let the respondent contest notice completeness and then invoke limitations.
- Why it matters
- The clearest recent statement that batching maths and tolling maths are reviewed together. A protocol limited to twenty-five coordinated claims per round can take well over a decade to clear a two-thousand-claim inventory even with aggressive resolution targets — and a tolling clause the drafter can contest does not cure that.
- batching
- tolling
- unconscionability
- opt-out
- Claims per round
- 25
- Illustrative 2,000-claim runway
- ~13 years
