Washington Supreme Court hears dispute over Nu Skin forum-selection clause and unconscionability claims

The Washington Supreme Court on Sept. 17 heard oral argument in Ernest Rab, DC, et al. v. Nu Skin Enterprises, Inc., a case testing whether a contractual forum-selection clause naming Utah as the exclusive forum is enforceable when respondents say the contract’s dispute-resolution provisions are unconscionable and would strip Washington consumers of statutory protections.

In her opening, Lori Mazzucchetti, counsel for petitioners Nu Skin Enterprises Inc. and Pharmanix LLC, told the court the forum-selection clause “requires that Utah is the exclusive forum for all disputes between plaintiffs and Nu Skin, including disputes with respect to arbitrability,” and argued that the Court of Appeals erred by considering unconscionability challenges that petitioners contend were not properly raised below. Mazzucchetti said the proper procedural vehicle under Washington precedent was CR 12(b)(3) and that plaintiffs failed to meet the evidentiary burden required to show the…