Class Action Arbitration Agreements

A class action is a type of legal action where a representative individual or group of individuals can bring a claim on behalf of a larger group or class who share a common legal interest.
News & Analysis as of

Beware! Long Term Care Class Actions are Coming

Long term care providers beware, class action suits are coming. Due to allegations of chronic understaffing, long term care providers are beginning to face massive class action lawsuits nationwide. The trend began in 2010,...more

NLRB Finds Mandatory Arbitration Clause Unenforceable

An administrative law judge for the National Labor Relations Board (“Board”) found in favor of Talina Torres (“Torres”) against Employers Resource (“Employers”) after determining that an arbitration clause within an...more

Federal Arbitration Case Update | Compelling and Appealing

Following are two recent federal court rulings related to arbitration. Acknowledgement of Dispute Resolution Policy Sufficient to Compel Arbitration of Retaliation Claim - Ashbey v. Archstone Property Management,...more

TCPA Connect - June 2015

SPECIAL FOCUS: FCC Adopts Significant Changes to TCPA Rules - FCC Chairman Tom Wheeler’s proposal to revise the Telephone Consumer Protection Act rules passed by a 3-2 vote during yesterday’s Open Commission Meeting....more

Still Threatened: Arbitration Clauses in Securities Customer Agreements

In a report to Congress released in March, the Consumer Financial Protection Bureau (CFPB) takes aim at consumer agreements that require disputes to be resolved by arbitration. The CFPB generally does not have...more

CFPB Report Likely Precursor to Regulatory Limits on Mandatory Arbitration Provisions

The Consumer Financial Protection Bureau (CFPB) released a study in March 2015 criticizing the use of mandatory, pre-dispute arbitration agreements in financial contracts with consumers. As expected, the CFPB found...more

Justices Pass on Second Opportunity to Resolve the California PAGA Divide in the Bridgestone Case

For a second time the U.S. Supreme Court declined to hear a case challenging a California Supreme Court holding that the state’s Private Attorneys General Act (PAGA) could not be waived in a mandatory arbitration agreement....more

NLRB Refuses to Approve Withdrawal of Charges Despite Settlement of Class Action Case

We know that, among many other common employer policies, the NLRB considers many mandatory arbitration agreements to be unlawful, particularly where they prohibit class or collective actions. See Murphy Oil USA, Inc., 361...more

Recent Decision Provides New Strategies for Businesses Seeking to Avoid TCPA Class Actions

Earlier this month in Andermann v. Sprint Spectrum, L.P., a court addressed two hot topics in the litigation world: arbitration clauses and Telephone Consumer Protection Act (TCPA) class actions. The decision offers important...more

Sticking up for Their Rights: Employers Taking the Offensive

The traditional posture of California employers apprehensive about “gotcha” wage and hour claims is to hunker down and wait for the next lawsuit. But a few brave souls have taken the offensive. We celebrate two examples here....more

In Sprint Victory, Judge Posner and the Seventh Circuit Hold That Arbitration Is Required in a TCPA Class Action Even Though the...

On May 11, 2015, in an opinion written by Judge Posner, the Seventh Circuit reversed an order denying Sprint’s motion to compel arbitration in a class action allegation violations of the Telephone Consumer Protection Act...more

U.S. Supreme Court To Hear Appeal On Enforceability Of Arbitration Agreements In California

The United States Supreme Court has granted DIRECTV’s petition for Writ of Certiorari and will hear the following question presented: Whether the California Court of Appeal erred by holding, in direct conflict with the Ninth...more

Managing Your Class-Action Risk Through Arbitration Agreements

More companies are now using arbitration agreements to manage class-action risk. Several recent U.S. Supreme Court decisions have made it possible for companies to use arbitration to resolve disputes while managing...more

Circuit Courts Address Impact of Arbitration Agreements on Labor Class and Collective Actions

In Conners v. Gusano’s Chicago Style Pizzeria, plaintiffs, former employees of defendant, brought a collective action alleging violations of the Fair Labor Standards Act. Defendant responded by implementing a binding...more

Supreme Court Won’t Review Class Arbitrability Question Now, But Second Circuit May Hear Case That Could Generate Circuit Split

The United States Supreme Court recently declined to review a Third Circuit decision holding that ordinarily a court, not an arbitrator, determines the availability of classwide arbitration. Opalinski v. Robert Half...more

CFPB Says Arbitration Agreements Limit Consumer Relief in Class Actions; New Regulations on the Horizon?

The Supreme Court’s 2011 decision in AT&T Mobility LLC v. Concepcion upheld an arbitration clause requiring arbitration of claims individually, thereby effectively preventing class actions. While the consumer finance industry...more

Arbitration Agreements Can Backfire on Employers

It is no secret that arbitration agreements may greatly reduce the risks that many employers face in disputes with employees. For example, when used correctly, such agreements can curb exposure to class actions by forcing...more

The Beginning of the End for Class Action Litigation? Why Justice Scalia and the Current Supreme Court Are Good for Business

In American Express Co. v. Italian Colors Restaurant, the Supreme Court confirmed what it had only hinted at two years earlier in AT&T Mobility, LLC v. Concepcion. In a holding authored by Justice Scalia, the Court made plain...more

Who Determines if Class Arbitration is Available? Why it Matters and Will the Supreme Court Decide

In the wake of several favorable U.S. Supreme Court decisions, companies increasingly are using arbitration agreements to control their exposure to class action liability. Although recent cases have reinforced the power of...more

Multiple PAGA Representative Claims Crumble As Federal Courts Continue To Reject Iskanian and Enforce Arbitration Agreements...

When the California Supreme Court decided Iskanian v. CLS Transp. Los Angeles, LLC, 59 Cal. 4th 348 (2014), this June, some legal commentators assumed that employees could not waive pre-litigation claims under the Private...more

Who Decides the Issue of Class Arbitration?

Two districts of the California Court of Appeal recently issued significant decisions on arbitration agreements. In a published case, the Fourth Appellate District of the California Court of Appeal held that if the...more

Further Thoughts on the St. John’s Consumer Arbitration Study

Jeff Sovern, through his Consumer Law & Policy Blog, recently responded to our criticism that the St. John’s study didn’t include arbitration provisions with opt-out features. Jeff makes the point that since consumers don’t...more

NLRB Reaffirms D.R. Horton Decision Invalidating Arbitral Class Action Waivers

In a controversial decision that rejects the precedent of numerous federal and state courts, the National Labor Relations Board (NLRB) has reaffirmed its earlier decision in D.R. Horton, Inc., 357 NLRB No. 184 (2012). In...more

Murphy Oil USA, Inc.: NLRB Holds on Class Action Arbitration Agreements - NLRB Reaffirms Its 2012 D.R. Horton Ruling Despite...

The National Labor Relations Board (Board) in Murphy Oil USA, Inc. and Sheila M. Hobson (Murphy Oil) refused to back away from its controversial 2012 ruling in D.R. Horton, Inc. and Michael Cuda (D.R. Horton) finding class...more

High-Court Showdown Looming? NLRB Defends D.R. Horton Section 7 Decision with Full-Throated Rebuttal in Murphy Oil

In the wake of federal circuit courts rejecting its position on the issue of class action waivers, the National Labor Relations Board is digging in its heels, perhaps preparing itself for a Supreme Court battle. Employers...more

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