Federal Arbitration Act Preemption

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

Eleventh Circuit Holds That Defendant Cannot Be Precluded From Asserting Its Arbitration Rights Against Future Class Members

The Eleventh Circuit recently held that a district court lacked jurisdiction to determine, pre-certification, that a defendant’s waiver of its right to compel named plaintiffs to arbitrate their claims precluded it from...more

Supreme Court Update: Omnicare, Inc. V. Laborers Industry Pension Fund (13-435), B&B Hardware V. Hargis Industries (13-352) And...

The Court began its March sitting this week (just in time for April), and issued decisions and two new cert grants. In this Update, we'll discuss Omnicare, Inc. v. Laborers Industry Pension Fund (13-435), on issuer liability...more

Supreme Court To Decide California Arbitration Issue

On March 23, the U.S. Supreme Court granted certiorari in DirecTV, Inc. v. Imburgia, agreeing to resolve a split between the Ninth Circuit and California state courts on how to interpret the same DirecTV arbitration...more

Third Circuit: Pennsylvania Law Preempted By The FAA

The Third Circuit recently ruled that a Pennsylvania statute prohibiting an unregistered businesses from maintaining any “action or proceeding” in any court in the state interferes with the enforcement of arbitration awards...more

Third Circuit Finds Pennsylvania Statute Preempted by FAA

The Third Circuit recently found that the Federal Arbitration Act preempts a Pennsylvania statute that restricts corporate plaintiffs in state and federal court in Pennsylvania to those companies that are registered to do...more

The Changing Face of Employment Arbitration Agreements in California

Arbitration. A simple word, but one that, in the context of employment agreements, was typically a “dirty” word in the eyes of California courts. Indeed, for many years, state courts could be seen as openly hostile to...more

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

Did You Know…PAGA Waivers Unenforceable in California Courts

The United States Supreme Court recently declined to review the California Supreme Court’s decision in Iskanian v. CLS Transportation Los Angeles, LLC. In Iskanian, the California Supreme Court held that the Federal...more

U.S. Supreme Court Denies Challenge to California Decision that PAGA Claims Cannot be Waived in Arbitration Agreements

The U.S. Supreme Court recently denied a petition for certiorari that challenged a California Supreme Court decision carving out an exception to the federal high court’s recent holdings in AT&T Mobility LLC v. Concepcion and...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

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

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

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

SOX Squelches Arbitration of Entangled Claim

In Laubenstein v. Conair Corp., No. 5:14-cv-05227 (W.D. Ark. Nov. 19, 2014), Plaintiff claimed retaliation under the Sarbanes-Oxley Act (“SOX”) and a state-law claim for wrongful termination. A recent amendment to SOX...more

Tenth Circuit Holds FAA Preempts New Mexico Unconscionability Law

New Mexico law considers arbitration provisions that apply primarily to the claims that one party to the contract is likely to bring to be unconscionable and unenforceable. This law, the Tenth Circuit holds, is preempted by...more

Clean-Up in Aisle 9: Ninth Circuit Finds Ralphs Grocery Company’s Arbitration Policy Unconscionable Under State Law Not Preempted...

As we have reported on several occasions, a string of United States Supreme Court cases over the past few years has strengthened the use and applicability of arbitration provisions in contracts. For example, in AT&T Mobility...more

Did You Know…The Continuing Saga Of Arbitration Agreements & Unconscionability

In light of the United States Supreme Court decision in AT&T Mobility LLC v. Concepcion, the California Supreme Court recently reversed its own prior decision where it had held that an arbitration agreement that requires an...more

Arbitration Wars: The California Supreme Court Strikes Back In Sonic II

On October 17, 2013, the California Supreme Court revisited the enforceability of arbitration agreements in California. The Court released its decision Sonic-Calabasas Inc. v. Moreno (Sonic II). In that 5 – 2 ruling, the...more

California Confirms Preemption by FAA Over State Rule Barring Employee Waiver - Mostly

In Sonic-Calabasas A, Inc. v. Moreno (Sonic II), the California Supreme Court addressed an employee’s waiver of access to an administrative hearing, in this case a Berman hearing, in an arbitration agreement imposed as a...more

August 2013: Appellate Update

U.S. Supreme Court Concludes October 2012 Term. The U.S. Supreme Court concluded its October 2012 Term in June with a number of highly publicized cases on issues like race and gay marriage, but equally notable are the Term’s...more

"Business Cases in the US Supreme Court"

The U.S. Supreme Court recently closed its 2012 term with its usual headline-grabbing flurry of June decisions. Several of those decisions, as well as many more that received less publicity, will affect business interests. In...more

The U.S. Supreme Court Ended the Term with an Exclamation Mark at the End of Its Statement on Class Actions and Arbitration: The...

The Supreme Court’s October 2012 Term could rightly be named “The Year of the Class Action.” The High Court received many petitions for review and ultimately issued more than five decisions that tackled issues impacting the...more

Supreme Court Continues To Expand FAA Preemption

Do you hear that? . . . . It is the wailing and moaning of plaintiff’s attorneys across the country. On June 20, 2013, in a 5-3 decision (Sotomayor recused herself), the United States Supreme Court issued a...more

Ninth Circuit: Injunctive Relief Claims Relating Only to Past Harms to a Limited Class Are Not Exempt From Arbitration

Following the U.S. Supreme Court’s decision favoring arbitration clauses in AT&T Mobility LLC v. Concepcion, the Ninth Circuit Court of Appeals held in Kilgore v. KeyBank, N.A. that the Federal Arbitration Act (“FAA”)...more

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