News & Analysis as of

Arbitration Preemption Appeals

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 -
Ervin Cohen & Jessup LLP

The Battle for Supremacy: Federal Arbitration Act v. California Arbitration Act

Since its enactment, California courts have universally established the California Code of Civil Procedure section 1281.97 et seq., which governs the timely payment of fees in arbitration, allows no room for error....more

Venable LLP

Ninth Circuit Puts Mandatory Employment Arbitration Agreements Back on the Menu

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Once again, the California legislature's attempt to kneecap arbitration agreements in the employment arena has been swept aside by a federal court. As of February 15, 2023, California employers may continue to require...more

Payne & Fears

Key California Employment Law Case Summaries: September, October, and November 2022

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Summary - Where an employer can and does track the exact time in minutes that its employees work each shift, and those records show that employees were not paid for all the time they worked, neutral time rounding is not a...more

Genova Burns LLC

Timing is Everything: NJ Appellate Division Compels Arbitration of Employee’s Sex Harassment Claims

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On October 26, 2022, the New Jersey Appellate Division in Rourke v. Herr Foods, Inc. once again confirmed that the Federal Arbitration Act (FAA) preempts the 2019 amendment to the New Jersey Law Against Discrimination (NJLAD)...more

CDF Labor Law LLP

CA Court of Appeal Upholds Arbitration Agreement Under FAA Preemption

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Evenskaas v. California Transit Inc. reversed a Los Angeles Superior Court judge’s denial of an employer’s motion to compel arbitration of a former employee’s wage and hour class action. The trial court had concluded that the...more

Saul Ewing LLP

Appellate Court Invalidates Application of New Jersey LAD Amendment

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In a matter of first impression, the New Jersey Appellate Division issued a decision invalidating a recently enacted provision of the New Jersey Law Against Discrimination (“LAD”) which prohibited arbitration of LAD claims....more

Ervin Cohen & Jessup LLP

Mandatory Arbitration Agreements in California: Down, But Possibly Not Out

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Businesses and attorneys alike have kept a close eye on the developments surrounding the challenge to California Assembly Bill 51 (now codified as Labor Code section 432.6). Most recently, in a 2-1 decision, the 9th Circuit...more

Ballard Spahr LLP

Ninth Circuit denies Blair rehearing petitions, setting stage for possible SCOTUS review

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On January 17, 2020, the Ninth Circuit denied the defendants’ petitions for panel and en banc rehearing in the Blair v. Rent a Center appeals, setting the stage for possible U.S. Supreme Court review of the California Supreme...more

Ballard Spahr LLP

Plaintiffs Respond to Blair Rehearing Petitions

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As we recently advised you , on September 9, 2019, the Ninth Circuit ordered the plaintiffs in the Blair v. Rent-A-Center appeals to respond to the defendants’ petitions for rehearing, which ask the court en banc to overturn...more

Mintz - Arbitration, Mediation, ADR...

Who Decides the “Class Arbitrability” Issue: Fifth Circuit Joins Consensus That It Is a Court, Not an Arbitrator, But Evidently...

Add the Fifth Circuit to the growing list of Federal Circuit Courts that have decided that “class arbitrability” is a gateway question for a court, rather than an arbitrator, to decide in the first instance, absent the...more

King & Spalding

California Rule Barring Enforcement of Contractual Provisions that Limit Consumers’ Right to Seek Public Injunctions Not Preempted...

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On June 28, 2019, the Ninth Circuit issued three decisions confirming that the FAA does not preempt California’s so-called “McGill” rule. As a result, the court invalidated provisions of the arbitration agreements in each...more

Moore & Van Allen PLLC

U.S. Supreme Court Said “No” to Class Arbitration in Employment-Related Data Breach Dispute Because Arbitration Agreement...

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The U.S. Supreme Court issued two 5-4 decisions in as many months regarding class procedures. Lamp Plus, Inc. v. Varela, 587 U. S. ____ (2019) was favorable to corporate defendants by limiting the availability of class...more

King & Spalding

Supreme Court Rules Class Arbitrations Must Be Explicitly Authorized

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On April 24, 2019, in a 5-4 decision split along ideological lines, the Supreme Court held in Lamps Plus, Inc. v. Varela that class arbitration is not available where arbitration agreements are unclear about whether the...more

Ervin Cohen & Jessup LLP

Good News for Employers: Express Consent Required for Class Arbitration

Last year, the United States Supreme Court ruled that class action waivers in employment arbitration agreements are enforceable. But, the ruling did not address an agreement that is silent or ambiguous regarding the intent to...more

Blank Rome LLP

Have Employers Taken Home the Iron Throne with Lamps Plus?

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On April 24, 2019, the U.S. Supreme Court issued its 5–4 opinion in Lamps Plus, Inc., et al. v. Varela holding that class arbitration is only allowed when the parties’ agreement explicitly allows for it. In other words, when...more

Vedder Price

Class-Wide Arbitration May Not Be Compelled in the Face of an “Ambiguous” Arbitration Agreement

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In a case with important implications for employers, Lamps Plus, Inc. v. Varela, the United States Supreme Court held that class-wide arbitration may not be compelled pursuant to an arbitration agreement that is ambiguous as...more

BakerHostetler

Supreme Court: Express Consent Required for Class Arbitration

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On April 24, 2019, the U.S. Supreme Court ruled that an ambiguous arbitration agreement does not provide a sufficient basis to conclude that parties agreed to class arbitration....more

Kilpatrick

What the Lamps Plus court did not say about class arbitration

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In the aftermath of the Supreme Court’s decision in Lamps Plus, Inc. v. Varella, No. 17-988, 2019 WL 1780275 (U.S. Apr. 24, 2019), a lot of ink has been spilled on the issue of class arbitration.  The Lamps Plus majority,...more

Carlton Fields

Supreme Court’s Lamp Plus Brings Ambiguity in Classwide Arbitration to Light

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In 2016, a hacker tricked an employee of petitioner Lamps Plus Inc. into disclosing tax information of about 1,300 company employees. ...more

Parker Poe Adams & Bernstein LLP

U.S. Supreme Court Says Arbitration Agreements Exclude Class Arbitration Absent Consent

In last year’s Epic Systems decision, the U.S. Supreme Court held that the Federal Arbitration Act (FAA) allows mandatory arbitration agreements that preclude class or collective action claims. In other words, a party to the...more

Kelley Drye & Warren LLP

Going It Alone: The Supreme Court Continues to Limit Class Arbitration for Employees

If you’re waiting for a reversal of the trend at the Supreme Court to limit employers’ ability to insist on arbitration instead of litigation, or of the trend limiting class claims, keep waiting. The Supreme Court...more

Baker Donelson

U.S. Supreme Court Curbs Class Arbitrations

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Intro - Last week, the Supreme Court may have put the final nail in the class arbitration coffin in Lamps Plus, Inc. v. Varela. ...more

Obermayer Rebmann Maxwell & Hippel LLP

Supreme Court Blocks Class-Wide Employment Arbitration Due to Vague Contract Language

Over the past several years, the U.S. Supreme Court has been expanding the enforceability of arbitration agreements and making it easier for employers to keep employment claims out of court. In its landmark Epic Systems...more

Vedder Price

SCOTUS Catapults Class Arbitration Onto the Endangered Species List

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On April 24, 2019, the U.S. Supreme Court issued an important decision touching a number of hot button issues and litigation threats facing American businesses — including class actions, arbitration agreements and data...more

K&L Gates LLP

Class Arbitration: A Creature of Clear Contractual Consent

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On April 24, 2019, in the case of Lamps Plus, Inc. v. Varela, the United States Supreme Court issued its latest decision regarding the availability of class arbitration. ...more

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