Federal Arbitration Act

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
News & Analysis as of

What Are Your Options When You Think That Your Arbitrator Has Gone Out Of Control?

You don't have many options when you think that the arbitrator who you agreed to hear your case has delivered a plainly wrong arbitration award. In fact, you probably have none at all. The Defendants in the NC Business...more

Court Compels Arbitration But Refuses To Stay Parallel State Action

The district court of South Carolina granted National Home Insurance Company’s (“National”) motion to compel arbitration in a dispute over new home defects. Home Buyers Warranty Corporation (“HBW”) manages a program for home...more

California Court of Appeal holds certain class action waivers may be unenforceable

Class action waivers have become common in consumer contracts, including sales agreements to purchase newly constructed residences and employment agreements, which may also contain arbitration clauses. After last year’s...more

Ninth Circuit, California Agree: Employee Waivers of PAGA Representative Claims Unenforceable

A divided panel in the U.S. Court of Appeals for the Ninth Circuit recently issued a 2-1 decision in the anticipated case of Sakkab v. Luxottica Retail North America, Inc. (Luxottica). Over a strongly worded dissent, the...more

Retail and Consumer Products Law Roundup - November 2015

We are pleased to share with you the first issue of Manatt's Retail and Consumer Products Law Roundup. The newsletter will be published on a monthly basis and will survey topics of critical importance to the retail,...more

New York Times article omits critical pro-arbitration facts

An article on consumer arbitration in this week’s Sunday New York Times concludes that “[b]y inserting individual arbitration clauses into a soaring number of consumer and employment contracts, companies… devised a way to...more

NC Business Court On Arbitrability: Clear And Unmistakable

You may have pondered over the question whether a Judge or an Arbitrator decides if a particular dispute is subject to an agreement to arbitrate. If you have wondered who makes that sort of decision, it's actually not an...more

Arbitration Clauses Under Attack – Do They Harm Consumers?

Arbitration clauses are a common feature in a large part of my business litigation practice. They are generally enforceable under both federal and state statutes (e.g., the Federal Arbitration Act and the Tennessee Uniform...more

“Older Workers” Do Not Have To Arbitrate Statutory Employment Claim

Arbitration is having its 15 minutes of fame. Thanks to a series in the New York Times, my inbox is full of links to the articles, questions about the information, and fascinating commentary. [Next time I am in Oakland, I...more

Fifth Circuit Stands Pat, Again Rejects NLRB Attempt To Void Class And Collective Action Waiver

As expected, the Fifth Circuit once again has rejected the NLRB’s highly controversial position that the National Labor Relations Act (“NLRA”) prohibits employers from requiring mandatory arbitration agreements that preclude...more

Ninth Circuit Affirms Iskanian Ruling Rendering PAGA Waivers Illegal

In Sakkab v. Luxottica Retail North America, Inc., the Ninth Circuit affirmed the California Supreme Court’s Iskanian v. CLS Transportation Los Angeles, LLC decision (originally summarized in our June 2012 issue), which held...more

Governor Brown Vetoes Controversial AB 465

On October 11, 2015, Governor Brown vetoed the controversial AB 465, legislation that attempted to make a sweeping prohibition of all mandatory arbitration agreements as a condition of California employment. AB 465 required...more

Fenwick Employment Brief

Legislative Update - Governor Brown recently signed into state law the following employment law bills (among others): SB 358—Referred to as the California Fair Pay Act, this law is directed at closing the pay...more

The Supreme Court Preview, Part II: Tuning Up Arbitration Clauses

This is the second post in our series “The Supreme Court Preview,” - California state and federal courts have a rocky history with the U.S. Supreme Court, as the highest court in the land has repeatedly reversed the...more

Responding to Professor Sovern: how Dodd-Frank Section 1028 limits the CFPB’s power to regulate arbitration agreements

In a blog post earlier this week, Professor Jeff Sovern took issue with statements made by a legal expert that suggest an amendment to the Federal Arbitration Act would be necessary for the CFPB to ban class action waivers in...more

Governor’s Pen Sends Anti-Employment Arbitration Bill to the Grave

On October 11—his very last day to sign or veto bills—Governor Brown vetoed the much-feared Assembly Bill 465. AB 465 would have banned mandatory agreements to arbitrate Labor Code claims as a condition of employment. At...more

The Beginning of the End of Arbitration Clauses in Consumer Finance Contracts?

Are contractual arbitration clauses harmful to consumers of financial products and services? The Consumer Financial Protection Bureau (the “CFPB”) appears to think so. On March 10, 2015, the CFPB released its 2015 Arbitration...more

CFPB Announces Intent to Commence Arbitration Rulemaking

On October 7, the Consumer Financial Protection Bureau (CFPB) announced that it is considering two rulemaking proposals that would severely limit the use of pre-dispute arbitration clauses in consumer financial service...more

The Consumer Financial Protection Bureau Takes Aim at Class Action Waivers in Arbitration Clauses

The Consumer Financial Protection Bureau (CFPB) last week announced its intent to launch a rulemaking process that would prohibit companies from using arbitration clauses that waive class action lawsuits. The CFPB's proposal...more

McCarran-Ferguson Lands a Jab on the FAA

As we reported in this space late last year, the U.S. Supreme Court’s decision in AT&T Mobility LLC v. Concepcion, 131 S.Ct. 1740, 1745 (2011), tilted the scales toward federal power in the field of arbitration, preempting...more

Struggle At The Supreme Court Over Arbitration Clauses

The U.S. Supreme Court returned to familiar territory last week in DirecTV Inc. v. Imburgia (argued Oct. 6, 2015): the enforceability of an arbitration clause in a consumer contract containing a class action waiver. But...more

U.S. Supreme Court’s October 2015 Term Promises Slew of Significant Labor and Employment Cases

Each year, the U.S. Supreme Court begins its term on the first Monday in October. Although known as the “October Term,” the term in fact continues, alternating between two-week “sittings” and “recesses,” until late June or...more

California Governor Vetoes Bill Prohibiting Mandatory Employment Arbitration Agreements

Employers can breathe a big sigh of relief for now: Governor Jerry Brown vetoed SB 465, which threatened to outlaw mandatory employment arbitration agreements in California. In his veto message, the Governor noted that there...more

Governor Brown Vetoes Blanket Ban on Arbitration Agreements, But Signals Potential Support of More Tailored Legislation

Governor Brown got it right when he vetoed Assembly Bill 465, which would have restricted the enforcement of arbitration agreements requiring the arbitration of claims brought against employers for violations under the...more

A Federal Ban on Arbitration Agreements in Nursing Homes? Senators’ Comment on CMS Proposed Rule Ignores Congressional Intent and...

In July, the Centers for Medicare & Medicaid Services (CMS) proposed changes to the requirements for long-term care facilities, including implementation of new restrictions on the use of binding arbitration agreements between...more

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