News & Analysis as of

Arbitration Class Action

Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties... more +
Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties to arbitration agree in advance to be bound by the arbitrator's decision. Arbitration is an alternative to litigation, but it shares many of the familiar features of litigation. Namely, parties to arbitration hold hearings before neutral decision-makers, present evidence and argue the merits of their position. Parties often choose arbitration due to its perceived advantages over litigation. Those perceived advantages include greater efficiency and flexibility, and lower costs. less -

Key California Employment Law Cases: August 2017

by Payne & Fears on

Arbitration - Sprunk v. Prisma LLC, No. B268755, 2017 WL 3614265 (Cal. Ct. App. Aug. 23, 2017) - Summary: Employer waived right to compel arbitration against class members by not timely pursuing arbitration. ...more

Will the Supreme Court Finally Remove Doubt That an Employer Can Mandate That Employees Enter into Arbitration Agreements with...

by Seyfarth Shaw LLP on

Seyfarth Synopsis: In the first argument of the first day of its new term, the U.S. Supreme Court will hear oral argument in three cases presenting the issue of whether an employer may require employees to enter into...more

Labor & Employment E-Note - September 2017

by Burr & Forman on

In late 2017 or early 2018, employers should anticipate clarity from the U.S. Supreme Court as to whether arbitration agreements requiring workers to waive their right to file class or collective actions violates the National...more

Arizona Court of Appeals Clarifies Law Governing Arbitration Waiver

by Snell & Wilmer on

In Security Alarm Financing Enterprises, L.P. v. Fuller, et al., Case No. 1 CA-CV 16-0255 (Ariz. Ct. App. July 6, 2017), the Arizona Court of Appeals recently held as a matter of first impression that Arizona state courts...more

Supreme Court Set To Weigh In On Class Action Waivers

by Burr & Forman on

In late 2017 or early 2018, employers should anticipate clarity from the U.S. Supreme Court as to whether arbitration agreements requiring workers to waive their right to file class or collective actions violates the National...more

Real Property & Title Insurance Update: Weeks Ending September 8 & 15, 2017

by Carlton Fields on

REAL PROPERTY UPDATE - Summary judgment: trial court erred by denying borrower’s motion to amend answer and defenses, and therefore erred in entering summary judgment in favor of lender. Reyes v BAC Home Loans Servicing...more

Protection of servicemembers, Equifax data breach provide mistaken justifications for CFPB arbitration rule

by Ballard Spahr LLP on

In a mistaken attempt to justify the CFPB’s arbitration rule, supporters are pointing to the need to protect the rights of military servicemembers and the recent Equifax data breach. On September 20, Democratic Senator Jack...more

Professor Sovern Disagrees with Senator Warren and Concedes that Consumers Do Well in Arbitration But Raises Another Red Herring

by Ballard Spahr LLP on

Professor Jeff Sovern has responded to our recent blog, “Senator Warren’s Numbers Don’t Add Up,” with a blog of his own. He does not contest the main point of our blog, which was that Senator Warren’s claim that consumers...more

Senator Warren’s Numbers Don’t Add Up

by Ballard Spahr LLP on

In a press release issued earlier this week, Senator Elizabeth Warren argued that the CFPB’s arbitration rule should not be repealed under the Congressional Review Act because consumers recovered “in only 9 percent of the...more

Equifax And The CFPB Arbitration Rule: A Tempest In A Teapot

by Ballard Spahr LLP on

The recent data breach disclosure by Equifax raised an outcry from consumer advocates trying to link the data breach to the Consumer Financial Protection Bureau’s (CFPB) final arbitration rule. They are portraying this...more

Second Circuit Vacates District Court’s Confirmation Of Class Certification Award

by Carlton Fields on

The question presented was whether the arbitrator had the authority to certify a class that included absent class members, i.e., employees other than the named plaintiffs and those who have opted into the class. Finding the...more

California Defendants Beware: Failing to Compel Arbitration Against Named Plaintiff Could Have Far-Reaching Consequences

California defendants in class actions should be wary of seeking a strategic advantage by litigating before seeking to compel arbitration. The Court of Appeal held recently in Sprunk v. Prisma LLC that a defendant in class...more

DOL Announces New Enforcement Policy on BIC Arbitration Limitation Class Actions

by Carlton Fields on

In order for fiduciaries to receive compensation that varies based on their investment advice (e.g., commissions) or from third parties in connection with their advice (e.g., revenue sharing), they must comply with a...more

Fifth Circuit Continues To Approve Class Action Arbitration Waivers Over NLRB Objections

by Carlton Fields on

The opening case of the United States Supreme Court’s October 2017 term is a consolidation of three cases that present a Circuit conflict on the issue of whether the collective-bargaining provisions of the National Labor...more

CFPB Issues Final Rule Prohibiting Class Action Waiver Arbitration Agreements In Certain Consumer Financial Contracts

by Carlton Fields on

The Consumer Financial Protection Bureau issued a final rule on July 10, 2017, prohibiting providers of certain consumer financial products and services from including within consumer agreements a requirement that any future...more

Director Cordray’s Op-Ed Disregards Many Inconvenient Facts

by Ballard Spahr LLP on

In an op-ed published in today’s New York Times, CFPB Director Richard Cordray argues against congressional repeal of the agency’s final arbitration rule by “correcting the record.” He contends that the CFPB’s March 2015...more

Eighth Circuit Holds That Question Of Class Arbitration Is For Courts, Not Arbitrators, To Decide

by Carlton Fields on

In this case, the question presented was whether a court or an arbitrator should determine whether an arbitration agreement authorizes class arbitration. The U.S. Supreme Court has not yet resolved this issue. Several circuit...more

Uber Uses Arbitration (And Clean Design) To Put Brakes On Consumer Class Action

Last Thursday, the Second Circuit found that the arbitration agreement in Uber’s Terms of Service was conspicuous enough to be binding and enforceable. As a result, the claims of a putative class of consumers will be...more

Fool’s Gold: Second Circuit Vacates Order Affirming Arbitrator’s Certification of Class of Jewelry Store Workers Including Absent...

On July 24, 2017, the Second Circuit Court of Appeals rejected a federal district court’s approval for a class of roughly 69,000 women claiming that Sterling Jewelers, Inc. (“Sterling”) discriminated against them based on...more

DOJ Backs Class Action Waivers

by LeClairRyan on

The United States Department of Justice (DOL) has made an about face and now takes the position that class action waivers in arbitration agreements are enforceable. The change in position from the Trump Administration’s DOJ...more

Convergys Corporation and LogistiCare Solutions, Incorporated v. NLRB – The Fifth Circuit Considers Class and Collective Action...

by BakerHostetler on

The U.S. Court of Appeals for the Fifth Circuit decided two cases considering the impact of the National Labor Relations Act (NLRA) on class or collective action waivers required by companies for their applicants and...more

CFPB Arbitration Rule Hits a Roadblock

The Consumer Financial Protection Bureau (CFPB) issued a final rule on pre-dispute arbitration agreements on July 10, 2017. The final rule was published in the Federal Register on July 19, 2017, and as such, it is due to...more

CFPB Final Arbitration Rule Bans Class Action Waivers, But Will it Survive?

by Moore & Van Allen PLLC on

The Consumer Financial Protection Bureau (CFPB) recently announced the release of its final rule prohibiting the use of class action waivers in certain consumer finance arbitration agreements. The rule has been several years...more

CFPB Final Rule Banning Class Action Waivers in Arbitration Agreements: The Final Front of Opposition as Congress Moves to Nullify...

by Moore & Van Allen PLLC on

The Consumer Financial Protection Bureau (CFPB) recently announced the release of its final rule that prohibits the use of class action waivers in certain consumer finance arbitration agreements. This rule banning class...more

Class Arbitration: Contractual “Crickets” Are Sufficient for Ninth Circuit to Determine That Class Arbitration Is Permitted,...

When is “silence” in an arbitration clause concerning class arbitration not “Stolt-Nielsen silence”? And what is the difference between a “claim” and a “procedure”? The Ninth Circuit seemingly took hair-splitting to a new...more

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