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Arbitration Agreements Unconscionable Contracts

Eighth Circuit Affirms Order Compelling Arbitration, Rejecting Contract Defenses Of Unconscionability And Lack Of Consideration

by Carlton Fields on

The Eighth Circuit affirmed an order compelling arbitration in a case filed by a volunteer concession worker against an operator of concessions at a sports stadium in St. Louis. The concession worker had volunteered to work...more

Shouldn't You Be Using Arbitration Agreements to Reduce the Costs of Litigation and the Risk of Class Action Claims?

by Foley & Lardner LLP on

Businesses across the country regularly bemoan the time and expense of litigation. Even when businesses are successful in defending non-meritorious consumer claims alleging unfair or deceptive practices, false advertising,...more

Key California Employment Law Cases: March 2017

by Payne & Fears on

This month’s key California employment law cases involve arbitration and PAGA issues. Arbitration - Farrar v. Direct Commerce, Inc., 9 Cal. App. 5th 1257, 215 Cal. Rptr. 3d 785 (2017) - Summary: Arbitration...more

Is Your Arbitration Agreement Enforceable?

by Snell & Wilmer on

Health care providers may favor arbitration due to the perception that it is a faster, less expensive alternative to litigation. State and federal policy favors arbitration for the same reasons.  Because of the strong public...more

Chipping Away at Arbitration: California Supreme Court Further Limits Arbitration Waivers

by Hirschfeld Kraemer LLP on

On April 6, 2017, the California Supreme Court held that an arbitration agreement waiving the right to public injunctive relief is contrary to California public policy and is unenforceable under California law. In McGill...more

NC Fiduciaries Have a Duty to Explain Arbitration Agreements in Contracts

by Smith Anderson on

The Supreme Court of North Carolina recently issued an opinion that could have a substantial impact on the enforceability of arbitration agreements when a fiduciary relationship exists, particularly in the context of consumer...more

In 2016 the Texas Supreme Court Continues to Favor Arbitration

by Strasburger & Price, LLP on

In 2016, the Texas Supreme Court issued three important opinions affecting arbitration agreements. The most significant was Hoskins v. Hoskins, 497 S.W.3d 490 (Tex. 2016). The issue in that case was whether a party seeking to...more

North Carolina Federal Court Holds That Arbitration Clause Requiring Panel To Render A Decision Within 30 Days Is Not...

by Carlton Fields on

In July, a federal court in North Carolina held that an arbitration provision which required the arbitration panel to reach a decision within thirty days of their selection was not unconscionable. Arising out of a dispute...more

California Court of Appeal Reinforces Prior Holdings and Allows Employer to Enforce Arbitration Award in Contract of Adhesion

by Selman Breitman LLP on

In Da Loc Nguyen v. Applied Medical Resources, No. G057702 (Cal. Ct. App. October 14, 2016) (hereinafter “Nguyen”), the California Court of Appeal upheld a ruling compelling arbitration of plaintiff’s individual claims...more

English-Only Arbitration Agreement Deemed Unenforceable

by Seyfarth Shaw LLP on

Seyfarth Synopsis: An arbitration provision that was provided only in English to a population consisting of one-third Spanish speakers, and that required claimants to bear one-half of arbitration expenses, was unenforceable...more

Smith v. D.R. Horton, Inc.: The End of Arbitration for Residential Developers and Builders in South Carolina?

Mark Twain famously wrote that the reports of his death were exaggerated. Following the South Carolina Supreme Court’s decision in Smith v. D.R. Horton, Inc. last month, you may have heard arbitration is dead for South...more

South Carolina Supreme Court Decision Impacts Enforceability of Arbitration Provisions in New Residential Construction Sales...

On July 6, 2016, the South Carolina Supreme Court filed its Opinion No. 27645, captioned Smith v. D.R. Horton, Inc., in which it affirmed the Court of Appeals' refusal to compel arbitration between new home purchasers and the...more

New Jersey Rejects Contractual Shortening of Limitations Period

by Morgan Lewis on

The New Jersey Supreme Court’s decision forbids employers from contractually shortening the two-year limitations period under the state’s Law Against Discrimination. In a decision issued on June 15 that reversed two...more

Employers Cannot Shorten Time Frame to Bring Claims Under N.J. LAD

In a decision issued yesterday in Rodriguez v. Raymours Furniture Company, the Supreme Court of New Jersey ruled that provisions in employment agreements shortening the limitations period for bringing claims under the New...more

Statute of Limitations for New Jersey Law Against Discrimination Claims Cannot Be Shortened By Contract

by Seyfarth Shaw LLP on

Seyfarth Synopsis: The Supreme Court of New Jersey rules that employers may not shorten the statute of limitations for claims of discrimination under the New Jersey Law Against Discrimination via private contract. The...more

Ninth Circuit Reverses Holding That Arbitration Clause In Employment Agreement Is Unconscionable

by Carlton Fields on

In early April, the Ninth Circuit Court of Appeals reviewed a lower court’s holding that an arbitration clause in an employment agreement with JP Morgan was procedurally and substantively unconscionable. Because the...more

Consumer Financial Protection Bureau Publishes Proposed Rule Precluding Class Action Waivers in Arbitration Clauses

by Pierce Atwood LLP on

As we reported last year, in October 2015 the Consumer Financial Protection Bureau published an outline of proposals that would limit the use of arbitration provisions in contracts for consumer financial products. On May 5,...more

Carbajal v. CWPSC Decision Provides Guidance for Drafting Employment Arbitration Agreements

by McManis Faulkner on

On February 26, 2016, the California Court of Appeal, Fourth District, issued its decision in Carbajal v. CWPSC, Inc., invalidating an employment arbitration agreement due to a number of provisions the Court considered...more

California Supreme Court Upholds Arbitration Agreements That Mutually Exclude Applications for Temporary Restraining Orders and...

by Morrison & Foerster LLP on

On Monday, March 28, 2016, the California Supreme Court affirmed the decision of the Second Appellate District holding that an arbitration agreement in an employment contract is not substantively unconscionable simply because...more

Court OKs Arbitration Agreement Permitting Injunctive Relief

by Seyfarth Shaw LLP on

Seyfarth Synopsis in a Second: A clause in an employment arbitration agreement that authorizes preliminary injunctive relief in court does not make the agreement unenforceable. As a general proposition, arbitration...more

California Supreme Court: Arbitration Agreement Restating Existing Law Is Not Unconscionable

On March 28, 2016, the California Supreme Court handed down a long-awaited opinion in Baltazar v. Forever 21. Baltazar’s most important holding is that an arbitration agreement is not unconscionable merely because it restates...more

Exhibit C For The Case That California Is No Longer Anti-Arbitration

The Supreme Court of California this week enforced the arbitration agreement between an employee and employer. Yes, you read that right. While reputed to be reliably anti-arbitration, California’s highest court continues to...more

California Supreme Court Issues Pro-Arbitration Agreement Decision

On March 28, 2016, the Supreme Court of California issued another ruling on the enforceability of arbitration agreements. In Baltazar v. Forever 21, Inc. (S208345), the court considered the enforceability of an arbitration...more

Employment Law - March 2016 #3

New EEOC Suits: Discrimination Based on Sexual Orientation Violates Title VII - Why it matters - The Equal Employment Opportunity Commission (EEOC) filed a pair of landmark lawsuits alleging sex discrimination based...more

Montana Finds Arbitration Agreement Unconscionable For Lack of Mutuality

March comes in like a lion, right?  Well, that’s not true with respect to the weather here in Minneapolis.  But it may be true with respect to arbitration decisions from around the country.  This post focuses on two recent...more

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