Mandatory Arbitration Clauses

News & Analysis as of

U.S. Supreme Court Refuses to Hear Iskanian v. CLS Transportation Appeal

Last summer, the California Supreme Court ruled in Iskanian v. CLS Transportation Los Angeles, LLC that the Federal Arbitration Act (FAA) preempted California’s policy against enforcement of class action waivers in...more

The Sixth Circuit Holds That an Arbitration Clause in an Expired Contract Still Applies

Does the duty to arbitrate survive the expiration of a contract? The United States Court of Appeals, Sixth Circuit recently held “yes.” The Sixth Circuit became the first federal appeals court to examine whether a contract’s...more

U.S. Supreme Court Declines Review of California’s Iskanian Decision – California State and Federal Courts Remain Divided on PAGA...

The U.S. Supreme Court has declined to review California high court’s landmark decision in Iskanian v. CLS Transportation Los Angeles, which held that arbitration agreements with mandatory class waivers are generally...more

No Waiver Of PAGA Representative Claims (Yet)

This week, the U.S. Supreme Court denied certiorari in connection with the California Supreme Court’s decision in Iskanian v. CLS Transportation Los Angleles, LLC. Had the Court heard the Iskanian case, it was expected to...more

California’s Inconsistent Treatment of Pre-Dispute Waivers in Arbitration Agreements Will Remain in Place

This week, the U.S. Supreme Court declined to grant review in Iskanian v. CLS Transportation Los Angeles, LLC, leaving in place a California Supreme Court holding that pre-dispute arbitration agreements cannot require...more

U.S. Supreme Court Tires (For Now) of Playing “Whack-a-Mole” With California Over Arbitration

On January 20, 2015, the U.S. Supreme Court denied the petition for certiorari filed in CLS Transp. Los Angeles, LLC v. Iskanian, a case in which the California Supreme Court held that waivers of employees’ right to bring...more

Supremes Leave PAGA Representative Claims Intact

On January 20, 2015, the U.S. Supreme Court denied review of CLS Transportation Los Angeles, LLC v. Iskanian ("Iskanian"), a case which would have determined whether employees in California could continue to bring...more

The Supreme Court’s denial of certiorari in Iskanian only hardens the federal-state divide over PAGA claims

The divide continues between California and federal law on whether an arbitration agreement can entirely waive an employee’s ability to seek classwide or multiparty representational relief. The Supreme Court on Tuesday denied...more

PAGA Representative Claims Remain Alive After SCOTUS Denies Iskanian Review

Yesterday, the Supreme Court of the United States declined review of a state supreme court case that has sparked widespread flux in the landscape of class action arbitration waivers in California. In Iskanian v. CLS...more

Physician Plaintiff Bound by Arbitration Clause in Nonparty’s Contract

Today’s riddle: A physician sues defendants for defamation. The defendants move to compel the arbitration clause of a contract the physician used to have with a nonparty. The defendants win the argument. What’s the...more

State Attorneys General Urge CFPB to Regulate Arbitration Clauses in Consumer Agreements

Late last year, the attorneys general of California, New York, Illinois and 13 other states urged the CFPB to use its statutory authority to “regulate pre-dispute mandatory arbitration clauses in consumer agreements for...more

Arbitration Provisions Must Include Clear and Unambiguous Waiver of Claimant’s Right to Sue in Court, New Jersey Supreme Court and...

New Jersey employers with mandatory arbitration provisions seeking to compel the arbitration of employment disputes with their employees would be well-served to reexamine such provisions in light of recent decisions by New...more

Arbitrator Should Decide Whether Dispute Falls Within the Scope of the Arbitration Clause

U.S. Nutraceuticals, LLC v. Cyanotech Corp. - Addressing who should decide whether a dispute falls within the scope of an arbitration clause, the U.S. Court of Appeals for the 11th Circuit reversed a district court’s...more

NLRB Again Attempts to Invalidate Mandatory Arbitration Clauses for Employment Claims

In its Murphy Oil decision, the National Labor Relations Board affirmed its 2012 holding in D. R. Horton, which found an employer violates the NLRA when it requires employees “as condition of their employment, to sign an...more

Sixteen State Attorneys General Urge CFPB to Limit Pre-dispute Arbitration

State attorneys general from California, Connecticut, Delaware, Hawaii, Illinois, Iowa, Kentucky, Maine, Maryland, Massachusetts, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington sent a letter to Consumer...more

Firms Have Roadmap for Expanding Litigation of Customer Disputes After Second Circuit Holds Forum Selection Clauses Trump FINRA’s...

In the recent decision, Goldman Sachs & Co. v. Golden Empire Sch. Fin. Auth., 764 F.3d 210 (2d Cir. 2014), the Second Circuit held that nearly-identical forum selection clauses in broker-dealer agreements between the...more

New Ninth Circuit Opinion Requires Companies Seeking to Enforce Arbitration to Pay 'Sirius' Attention to Contract Formation

On November 10, 2014, the U.S. Court of Appeals for the Ninth Circuit continued its recent trend of declining to enforce arbitration clauses after finding that the contracts containing those clauses were never actually formed...more

State Supreme Court’s Interpretation of FAA Sidesteps SCOTUS Court Review

The U.S. Supreme Court’s recent string of pro-arbitration decisions is well documented. In those decisions, the Court has not hesitated to admonish state courts for failing to follow the Federal Arbitration Act...more

Business Litigation Reporter -- October 2014

California - Browsewrap Arbitration Agreement Not Enforced Against Individual Consumer. In Nguyen v. Barnes & Noble Inc., 2014 WL 4056549 (9th Cir. Aug. 18, 2014), the Ninth Circuit affirmed the denial of B&N’s motion...more

Under FAA, Chicago Court Refuses To Determine Whether Claims Should Be Part Of Pending New York Arbitration

A dispute involving competing actions between two competing aeroponic farming companies, FarmedHere, LLC and Just Greens, LLC (doing business as Aero Farm Systems), was simultaneously at issue in a New York arbitration, a New...more

In New Jersey, arbitration clauses in consumer contracts are unenforceable when the parties to the contracts do not explicitly...

The Supreme Court for the State of New Jersey held that the failure to include specific trial by jury waiver language in arbitration clauses renders them unenforceable in consumer contracts, notwithstanding the fact that said...more

New Jersey Court Casts Doubt on Enforceability of Consumer Arbitration Agreements That Lack “Magic Words”

The New Jersey Supreme Court has cast doubt on the enforceability of arbitration clauses in consumer agreements that lack clear language specifying that consumers have waived their rights to litigate claims in a court....more

EEOC Ramps Up Attack On Mandatory Arbitration Agreements

Over the course of its history, the U.S. Equal Employment Opportunity Commission (“EEOC”) has disfavored the application of mandatory arbitration agreements within the employment context. Indeed, until the decision in...more

Federal Law Governing Foreign Risk Retention Groups Preempts State Law That Prohibits Mandatory Arbitration Clauses In Insurance...

The Nebraska Supreme Court has held that Nebraska’s statute prohibiting mandatory arbitration clauses in insurance policies is preempted by the Liability Risk Retention Act of 1986 (LRRA). At issue was a professional...more

Commercial Court Refuses To Stay Proceedings Where Arbitration Clause Required Parties To "Endeavour" To Arbitrate A Dispute

In Christian Kruppa v Alessandro Benedetti & anr [2014] EWHC 1887 (Comm), 11 June 2014, the Commercial Court held that a dispute resolution clause that required the parties to "endeavour" to resolve a dispute through...more

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