Federal Arbitration Act Arbitration Agreements

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

California Court Of Appeal Sides With Federal Arbitration Act Over State Law Unconscionability Rule

The California Court of Appeals recently held that the Federal Arbitration Act (“FAA”) preempts California’s Broughton-Cruz rule, which states that arbitration agreements for injunctive relief under California’s unfair...more

UPDATE: SCOTUS Denies Petition For Cert In Iskanian

On June 24, 2014, the California Supreme Court issued a controversial decision in Iskanian v. CLS Transportation Los Angeles, LLC. While the Court in Iskanian confirmed that an express class action waiver in an employment...more

California’s “Third Party Litigation Exception” Not Preempted By The FAA

A California appellate court recently examined that state’s legislative response to the situation where a party moves to compel arbitration and some of the parties to the dispute are not parties to the arbitration agreement....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

The Widening California Divide: The Rejection of Iskanian by Federal District Courts and Potential Resolution

In an October 22, 2014, posting, we addressed the growing divide between California federal district courts and the California Supreme Court over whether an arbitration agreement can waive an employee’s right to pursue a...more

2014: The Year of Arbitrator Authority

A lot of interesting arbitration law was made this year, on topics from validity to vacatur, but the banner issue was arbitrator authority.  SCOTUS announced that theme for the year with its BG Group decision in March and...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

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

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

Unchecked: How Frazier v. CitiFinancial Eliminated Judicially Created Grounds for Vacatur Under the Federal Arbitration Act

Arbitration agreements play a pivotal role in resolving civil disputes. In an effort to avoid the time and expense of litigation, arbitration is often favored over traditional judicial remedies. In 1925, Congress passed the...more

McCarran-Ferguson vs. the FAA: Judge Posner Declares TKO in Favor of Arbitration

In a bout before the U.S. Court of Appeals for the Seventh Circuit, two heavyweight federal statutes squared off, with coverage for hundreds of long-tail, asbestos-related personal injury lawsuits on the line. In one corner:...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

Arbitration Agreements in Nursing Home Admission Agreements

In response to increasing runaway verdicts with large awards for punitive damages, many nursing homes are including arbitration clauses in their admission agreements. The U.S. Supreme Court’s decision in Marmet Health Care...more

Including PAGA Representative Action Waivers in Arbitration Agreements Post-Iskanian

After the California Supreme Court’s recent decision in Iskanian v. CLS Transportation, which held that PAGA representative action waivers are unenforceable under California law, employers have struggled with whether to...more

PAGA Claims and Arbitration – A Federal Court Parts Ways With Iskanian

The California Supreme Court’s decision in Iskanian v. CLS Transp. Los Angeles, LLC, held that class action waivers in arbitration agreements are enforceable under the Federal Arbitration Act (FAA) except as to claims that...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

Arkansas and New Jersey Sidestep Concepcion Hurdle and Declare Consumer Arbitrations Invalid

Two state supreme courts found consumer arbitration agreements unenforceable in the past week: Arkansas and New Jersey. Arkansas grounded its decision on the lack of mutuality in the consumer arbitration agreement (similar to...more

Arbitration Denied In Class Action Where Plaintiff’s Trust Was A Party To Arbitration Agreement, But Plaintiff Was Not

In a life settlement transaction, in which a life insurance policy is sold by its owner to another for more than its cash-surrender value but less than the net death benefit, the seller contended that the broker and purchaser...more

End Of The World As We Know It (for Employment Arbitration)?

Cue the R.E.M folks, because the Supreme Court of Missouri issued a 4-3 opinion recently that appears to upend many employment arbitration agreements in that state. Baker v. Bristol Care, Inc., __ S.W.3d__, 2014 WL 4086378...more

Want to Arbitrate Employee Disputes? Keep Your Paperwork!

Arbitration agreements, and their use as a means to avoid class action disputes in particular, have been repeat news items in the last several years, and many companies continue to consider their use as a means to mitigate...more

Website Hyperlink Alone Does Not Establish User’s Assent to Arbitration Agreement, Ninth Circuit Holds

In a case intersecting the 89-year-old Federal Arbitration Act (FAA) and the digital era, the Ninth Circuit has ruled that a consumer who did not read the company’s terms of use when ordering a product on its website was not...more

Nitty Gritty Advice for Compelling Arbitration under the FAA

I regularly receive questions about compelling arbitration under the Federal Arbitration Act. In particular, people ask : (1) Can I file a motion to compel before any other “complaint” is filed; (2) What should I call my...more

InterConnect FLASH! No. 40 - Supreme Court Declines Swift Review - But It Is Not The End Of The Story

The U.S. Supreme Court recently declined to review the Swift worker misclassification case, which has been working its way through the courts for several years. That decision has brought up a lot of questions on the...more

Uncertainty Remains Regarding the NLRB's Position on Class and Collective Action Waivers

The law concerning class action waivers continues to develop at a rapid pace. While most courts are now enforcing class action waivers in arbitration agreements, there remains at least one prominent area of uncertainty for...more

California Supreme Court Upholds Use of Class Action Waivers in Employment Arbitration Agreements, But PAGA Claims May Not Be...

In a prior Alert dated June 11, 2012, we reported on a California appellate court decision in Iskanian v. CLS Transportation Los Angeles, LLC ("Iskanian"), which upheld the use of class and representative action waivers in...more

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