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Courts regularly praise private arbitration as a means of affording flexibility to the parties, reducing costs and time, and lessening the burden on the judicial system. In some cases though, arbitration clauses can present a...more
On January 28, the U.S. Court of Appeals for the Tenth Circuit held that the Federal Arbitration Act (FAA) preempts New Mexico common law that a compulsory-arbitration provision in a contract may be unconscionable and...more
In recent years, courts have consistently supported employers’ use of arbitration agreements in employment settings. During the last few terms, the Supreme Court of the United States has issued several decisions, such as...more
Porreca v. The Rose Group was a class action lawsuit brought by Carly Porreca and Charles Walton, alleging that their employer, Applebee’s Neighborhood Grill and Bar, had violated the Fair Labor Standards Act. After Porreca...more
The West Virginia Supreme Court of Appeals recently issued a decision addressing mandatory arbitration in connection with a residential mortgage loan that will impact litigants in the Mountain State and potentially influence...more
In Chavarria v. Ralphs Grocery Co., No. 11-56673, 2013 WL 5779332 (9th Cir. Oct. 28, 2013), the plaintiff, a former deli clerk, brought a class action against Ralphs for various alleged wage and hour violations of the...more
In AT&T Mobility v. Concepcion, the United States Supreme Court analyzed whether a court could refuse to enforce an arbitration agreement because the terms are “unconscionable,” meaning that one party did not have meaningful...more
As we have reported on several occasions, a string of United States Supreme Court cases over the past few years has strengthened the use and applicability of arbitration provisions in contracts. For example, in AT&T Mobility...more
No haunted house can scare general counsel as much as an opinion invalidating their company’s arbitration clause and thereby allowing a class action to proceed. So, here is a Halloween tale for all to keep in mind....more
In light of the United States Supreme Court decision in AT&T Mobility LLC v. Concepcion, the California Supreme Court recently reversed its own prior decision where it had held that an arbitration agreement that requires an...more
Almost one year after the U.S. Supreme Court summarily vacated the original 2011 Sonic-Calabasas opinion (Sonic I), the California Supreme Court issued its opinion on remand in Sonic-Calabasas A, Inc. v. Moreno (Sonic II)....more
Today, the Ninth Circuit, in Chavarria v. Ralphs Grocery Company (Case No. 11-56673), issued a decision affirming the denial of Ralphs Grocery Company’s motion to compel arbitration in an action by an employee asserting...more
We have written regularly regarding the enforceability of arbitration clauses contained in standard employment agreements. Understandably, most employers would love to avoid the uncertainty of appearing before a judge or jury...more
A number of recent court decisions have addressed the enforceability of contract clauses that call for alternative dispute resolution procedures instead of traditional courtroom litigation.
A recent decision by the Arizona Court of Appeals underscores the importance of keeping consumer arbitration agreements consumer friendly. In Clark v. Renaissance West, LLC, the court affirmed the trial court’s denial of a...more
Providing further clarity for the enforceability of arbitration agreements in employment contracts, California’s First District Court of Appeal upheld a boilerplate arbitration clause in Peng v. First Republic Bank, No....more
We recently posted a summary of Peng v. First Republic Bank, a case discussing the validity of an arbitration agreement contained in an employment contract. Peng is favorable for employers because the court there held that...more
In Peng v. First Republic Bank, the California Court of Appeal for the First Appellate District rejected an employee’s contention that a company’s standard arbitration agreement was unconscionable.
Parties to a business transaction frequently include mandatory arbitration clauses in their contracts believing that arbitration will be a faster, cheaper method to resolve potential disputes. The escalating administrative...more
On June 19, 2013, the West Virginia Supreme Court of Appeals (“the Court” or “WVSCA”) issued an important decision that bolsters the ability of financial institutions and other defendants to enforce arbitration agreements....more
The California Court of Appeal’s recent decision in Leos v. Darden Restaurants, Inc. continues the nationwide trend of courts enforcing arbitration provisions according to their terms.
Some employers have decided that it is beneficial to try to avoid public lawsuits and arbitrate disputes they may have with their employees. Such employers typically require employees to agree to arbitration at the time of...more
In Vargas v. SAI Monrovia, the California Court of Appeal for the Second Appellate District addressed the enforceability of an arbitration provision in a vehicle purchase agreement. The court held that the arbitration...more
Compton v. American Management Services LLC, No. B236669 (March 19, 2013): A California Court of Appeal recently held that an arbitration agreement was unenforceable because it was unconscionably one-sided. The agreement,...more
Many nursing homes and assisted living communities commonly include arbitration agreements as part of their admission agreement and documents. Typically, these agreements require residents or their legal surrogates to...more
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