AT&T Mobility v Concepcion

News & Analysis as of

Justices Take On Another California Rule – When an Arbitration Agreement Is Too Flawed to Enforce

The U.S. Supreme Court has agreed to review whether the Federal Arbitration Act (FAA) preempts a California state court rule on unconscionable provisions that is purportedly applied more stringently to arbitration agreements...more

CFPB Proposal Would Make Class Actions More Likely. Here's What's Next.

On Wednesday, October 7, the Consumer Financial Protection Bureau issued proposals that would, if adopted, limit the use of arbitration provisions in contracts for consumer financial products. The CFPB’s proposals would not...more

PAGA In The News – Ninth Circuit Sides with California Supreme Court On Enforcement of PAGA Waivers and California Amends The...

The Ninth Circuit Decision - Delivering a perhaps unexpected blow to employers, the Ninth Circuit sided with the California Supreme Court earlier this week in upholding the state-court-fashioned Iskanian rule, which...more

Tennessee Supreme Court Holds That State Unconscionability Law Does Not Implicate Concepcion And Is Not Preempted By FAA

The Supreme Court of Tennessee reversed the lower courts’ rulings that a non-mutual arbitration provision in an installment contract on the sale of a manufactured home was unconscionable and unenforceable. In doing so,...more

Arbitration Puzzler: Nevada’s Anti-Waiver Rule Preempted; California’s Anti-Waiver Rule Not Preempted

Two opinions came out recently in disputes over the arbitrability of putative class actions alleging that employees were not paid for overtime (and other labor violations). In one, the Nevada Supreme Court acknowledged that...more

CFPB to Consumer Financial Services Companies: Prepare to Wave Goodbye to Class Action Waivers

The Consumer Financial Protection Bureau (CFPB) is considering proposing rules that would prohibit consumer financial services companies from using class action waivers in consumer arbitration clauses, the CFPB announced...more

CFPB Proposes Banning Use of Pre-Dispute Arbitration Agreements in Consumer Class Actions

The Consumer Financial Protection Bureau (CFPB or Bureau) announced today that it is considering rules prohibiting application of pre-dispute arbitration agreements to class litigation involving certain consumer financial...more

Down The Arbitration Rabbit Hole: Ninth Circuit Refuses To Enforce Employee’s Waiver Of PAGA Claims

On September 28, 2015, the Ninth Circuit held in Shukri Sakkab v. Luxottica Retail North America, Inc. that the FAA does not preempt the rule that the California Supreme Court enunciated in Iskanian v. CLS Transportation that...more

Ninth Circuit Steals a PAGe from California Courts’ Playbook

Since the California Supreme Court’s 2014 ruling in Iskanian v. CLS Transportation that claims under the Private Attorneys General Act (“PAGA”) are not subject to arbitration, California federal district courts have rejected...more

SCOTUS Selects Second Arbitration Case For 2015 Term

2015 was a dry spell in arbitration decisions from the U.S. Supreme Court, but 2016 promises to be much more interesting. In addition to the California case being heard next week, SCOTUS just granted certiorari over another...more

California Employment Law and Arbitration: The Battle Intensifies

Tuesday, by a two-to-one vote, the Ninth Circuit joined the California Supreme Court in holding that Private Attorneys General Act (PAGA) claims are an exception to the Federal Arbitration Act. In Sakkab v. Luxottica Retail...more

California Employment Law and Arbitration: The Battle Intensifies

Yesterday, by a two-to-one vote, the Ninth Circuit joined the California Supreme Court in holding that Private Attorneys General Act (PAGA) claims are an exception to the Federal Arbitration Act. In Sakkab v. Luxottica Retail...more

A Call to Action: AB 465 is a Game Changer for California Arbitration Agreements

AB 465 is pending approval from Governor Jerry Brown. If approved, it will go into effect on January 1, 2016. Notably, AB 465 will prohibit California employers from requiring most individuals to enter into arbitration...more

Northern District of California Certifies Part of a Class Against Uber

Much is being reported in the media about the decision of the United States District Court for the Northern District of California certifying a class of drivers for the Uber ride service who contended that they were...more

United States Supreme Court Considering A California Appellate Court Opinion Invalidating A Class Action Arbitration Waiver

In a Special Focus article Rollie Goss previews another arbitration case coming before the United States Supreme Court involving the issue of whether a class arbitration waiver is unconscionable, and the impact of such a...more

California Legislature Tries Again to Thwart Arbitration With Bill Purporting to Make Mandatory Arbitration Unlawful

California employers should keep an eye on a new challenge to arbitration provisions on its way to the Governor’s desk. On August 24, 2015, the California Senate passed AB 465, which would make it unlawful for any employer or...more

California Legislature Targets Employment Arbitration Agreements

It is no secret that California is no friend to arbitration agreements. As the United States Supreme Court noted in its 2011 opinion in AT&T Mobility LLC v. Concepcion, “California’s courts have been more likely to hold...more

California Supreme Court Upholds Consumer Contract Arbitration Provision Under California’s Unconscionability Framework

In a dispute over the purchase of a car, the purchaser filed a class action in California against the car dealer, and the dealer moved to compel arbitration. The dealer invoked the arbitration agreement contained in the...more

It Is Now Easier To Draft Class Action Waivers and Arbitration Agreements

Last week, the California Supreme Court provided additional guidance as to how to draft an enforceable arbitration agreement and how Courts should analyze whether mandatory arbitration provisions can be held unconscionable...more

Man Bites Dog: California Supreme Court unanimously rejects unconscionability challenge to consumer arbitration provision

The California Supreme Court has a reputation for hostility to arbitration, especially in the consumers and employment context. Much of the arbitration docket of the United States Supreme Court over the past 30 years has...more

California Supreme Court Upholds Arbitration Clause, but Unconscionability Remains a Defense to Arbitration

The California Supreme Court issued its long-awaited decision in Sanchez v. Valencia Holding Company, LLC, on August 3, 2015, reversing a finding by the Court of Appeal that an arbitration provision was unconscionable...more

California Supreme Court Issues Ruling in Sanchez v. Valencia Holding Company, LLC

On August 3, 2015, the California Supreme Court issued a long-awaited opinion that provides further clarity on the standard of unconscionability needed to invalidate an arbitration agreement. The court determined that its...more

Arbitration policies for wage and hour claims

As the number of Fair Labor Standards Act lawsuits has grown, employers have started taking notice of the power a sizable class made up of numerous employees can command. Arbitration provisions – once the realm of...more

Representative Action Under California’s Private Attorneys General Act Not Waived Through Employment Agreement’s Arbitration...

The Central District of California held that a waiver of representative actions in an employment agreement’s arbitration provision did not preclude a former employee from pursuing in court a claim under California’s Private...more

CA Supreme Court Upholds Class Action Waivers in Long-awaited Sanchez Decision

On August 3, 2015, the California Supreme Court issued its long-awaited decision in Sanchez. v. Valencia Holding Company, LLC (2015) — Cal.4th — (Sanchez). The court provided much-needed clarity for consumers and auto finance...more

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