Class Action Federal Arbitration Act

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

Court Grants Motion To Stay Action Pending Arbitration, And Found That Issue Of Whether Arbitration Clause Allows For Class...

In this case, Jeffrey Hedrick brought an action in Kansas federal court on behalf of himself and others similarly situated under the Fair Labor Standards Act (“FLSA”) against BNC National Bank, Hedrick’s employer. The bank...more

Seventh Circuit Finds Class Action Waivers Unlawful

On May 26, 2016, the U.S. Court of Appeals for the Seventh Circuit in Lewis v. Epic Systems Corporation, held that when an employer conditions continued employment upon the signing of a class or collective action waiver in an...more

Ban Proposed on Mandatory Pre-Dispute Arbitration Agreements by Schools Receiving Title IV Aid for Student Borrowers

The U.S. Department of Education has issued a proposed rule that includes a ban on mandatory pre-dispute arbitration agreements by schools receiving Title IV assistance under the Higher Education Act (HEA) and a new federal...more

Seventh Circuit Holds Class Action Waivers are Unlawful and Unenforceable Creating a Circuit Split

On May 26, 2016, in the matter of Lewis v. Epic Systems Corporation, the U.S. Court of Appeals for the Seventh Circuit held that an arbitration agreement, which required employees to submit to individual arbitration for any...more

Circuit Courts Weigh Employee Arbitration Waiver Agreements with Divergent Results

Conflicting decisions issued within one week of each other from the U.S. Courts of Appeals for the Seventh and Eighth Circuits exemplify the ongoing debate in circuit courts across the country about the enforceability of...more

Out On A Limb, 7th Circuit Creates Circuit Split Over Class Arbitration For Employees

Of all the federal circuit courts, I was not expecting the 7th Circuit to venture out on a limb to support the NLRB’s interpretation of the National Labor Relations Act (NLRA) as precluding class arbitration waivers. ...more

Circuit Split Develops Over The Enforceability Of Class Waivers In Employment Agreements

Affirming a district court’s denial of a motion to compel arbitration, the United States Court of Appeals for the Seventh Circuit has held unenforceable a provision of an employment agreement mandating that wage-and-hour...more

Score One for the NLRB: Seventh Circuit Becomes First Federal Appeals Court to Hold that Class/Collective Action Waivers in...

The Seventh Circuit recently became the first federal appellate court to say that employers can’t prevent class/collective actions through waivers in mandatory arbitration agreements, holding that such waivers interfere with...more

Seventh Circuit Holds That Collective and Class Action Waivers in Arbitration Agreements are Unenforceable

The Seventh Circuit Court of Appeals held that collective and class action waivers contained in arbitration agreements with employees are unenforceable and violate the National Labor Relations Act. Reaching the opposite...more

Lewis v. Epic Systems Opinion – Seventh Circuit Swimming Against the Tide on Mandatory Individual Arbitration

In a sweeping May 26 opinion, the U.S. Court of Appeals for the Seventh Circuit shook up the arbitral landscape and created a remarkable circuit split regarding the enforceability of arbitration agreements with class action...more

Seventh Circuit Finds Class Action Waivers in Arbitration Agreements are Illegal and Unenforceable under the NLRA

On May 26, 2016, the U.S. Court of Appeals for the Seventh Circuit issued its decision in Lewis v. Epic-Systems Corp., finding that the company's arbitration agreement, which prohibits employees from participating in “any...more

Fourth Circuit Considers Whether Arbitration Agreement Was Binding Where Parties Modified Contract Through Conduct

In early April, the Fourth Circuit Court of Appeals considered whether an arbitration agreement was “a written provision” for purposes of the Federal Arbitration Act where the parties modified the contract through their...more

CFPB Targets Mandatory Arbitration Clauses to Protect Consumer Class Actions

On May 5, 2016, the Consumer Financial Protection Bureau (“CFPB”) issued a proposed rule to prohibit providers of certain consumer financial products and services from using arbitration clauses to block consumers from filing...more

CFPB Proposes New Class Action Arbitration Rule: Possible Challenges and Practical Impacts

The U.S. Consumer Financial Protection Bureau (CFPB) yesterday issued a Notice of Proposed Rulemaking that, among other things, would prohibit the use of class action waivers in arbitration clauses in connection with a broad...more

CFPB issues proposed rule to prohibit class action waivers in consumer arbitration agreements

As widely anticipated, the CFPB announced at its field hearing today in Albuquerque, New Mexico that it is proposing regulations that would prohibit covered providers of certain consumer financial products and services from...more

CFPB Publishes Proposed Rule Banning Pre-Dispute Arbitration Agreements in Consumer Class Actions

This week, the Consumer Financial Protection Bureau (CFPB or Bureau) published a proposed rule which would prohibit application of pre-dispute arbitration agreements to class litigation involving a broad range of consumer...more

CFPB Issues Proposed Regulations To Prohibit Class Action Waivers in Consumer Arbitration Agreements

Yesterday, the Consumer Financial Protection Bureau (CFPB) announced at a field hearing in Albuquerque, New Mexico, that it is proposing regulations that would prohibit covered providers of certain consumer financial products...more

Ninth Circuit Adopts California Rule Voiding Arbitration Provisions Barring Certain Representative Claims

In recent decisions, both the Court of Appeals for the Ninth Circuit and the California Supreme Court have held that arbitration clauses barring employees from pursuing class actions in arbitration are unenforceable with...more

Wavering on Class Action Waivers in Arbitration Agreements

Last week’s enormous settlements of up to $100 million in class action cases against Uber were reminders of the ongoing opposition to class action and other joint action waivers in arbitration agreements. The same is true of...more

Untangling the Webb of Arbitrability: The Fourth Circuit Holds That Courts Determine the Availability of Class-Wide Arbitration

Is the availability of class-wide arbitration a “gateway” question for courts, or are arbitrators charged with such a decision once a matter is compelled to them? In Dell Webb Communities, Inc. v. Carlson, the Fourth Circuit...more

Proposed Legislation Would Set Back Corporations’ Use of Arbitration Clauses

The Restoring Statutory Rights Act of 2016, sponsored by Democratic Senator Patrick Leahy, was sent to congressional committee on February 4, 2016 for consideration. The bill would place restrictions on companies’ use...more

Emerging Trends in Arbitration: Battle Brewing Between Executive and Judicial Branches

In recent years, arbitration has become a divisive issue. Exemplifying the increased public focus on arbitration, The New York Times ran a three-part series in 2015 that was very critical of the state of arbitration law. In...more

Arbitration Under Fire: Brace Your Company for Less Contract Freedom and More Class Actions

Since the Federal Arbitration Act (FAA) of 1925, the United States has had a policy preference for arbitration, even when an arbitration provision includes language barring class action litigation. We saw this most recently...more

Federal Court Confirms Reinsurance Arbitration Award, Finding That Panel’s Alleged Calculation Error Did Not Justify Modification...

A federal court recently granted a reinsurer’s motion to confirm an arbitration award, and denied a cedent’s petition to modify the same, holding that the panel’s alleged error in computing the amount due to the cedent was...more

U.S. Supreme Court Ruling Upholds Arbitration Over Class Action Litigation

SUPREME COURT UPHOLDS CLASS ARBITRATION WAIVERS - With its ruling on December 14, 2015, the Supreme Court continues to protect arbitration as a means of dispute resolution by cracking down on attempts to circumvent the...more

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