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

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

Federal Arbitration Act Preempts California’s Broughton-Cruz Rule, Allowing Arbitration of all Claims Including Claims for...

A federal district court denied a motion to compel arbitration for claims for injunctive relief under California’s unfair competition law, Consumer Legal Remedies Act, and false advertising law but granted the motion as to...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

Ninth Circuit Revives California Law That Allows Plaintiffs Seeking Injunctive Relief To Avoid Arbitration

More than one year ago, a three-judge panel of the Ninth Circuit determined that California case law, which precluded arbitration of claims asking for public injunctive relief, was preempted by the Federal Arbitration Act. ...more

Second Circuit Vindicates Concepcion in Gender Discrimination Case

In April 2011, the U.S. Supreme Court handed down its landmark opinion in AT&T Mobility v. Concepcion, holding that the Federal Arbitration Act preempted California's Discover Bank rule, which had previously voided waivers of...more

Check Your Arbitration Agreements After New Washington Supreme Court Case

A recent Washington Supreme Court case, Gandee v. LDL Freedom Enterprises, Inc., No. 87674-6 (Feb. 7, 2013), provides important insights into how Washington courts approach the enforceability of arbitration agreements in the...more

Could Arbitration Of Cost-Prohibitive State Law Claims Be Compelled While Similar Federal Claims Stay In Court?

A recent decision from a federal district court in Tennessee raises a discrepancy in how the courts treat arbitration agreements that hinder a plaintiff’s state law and federal law claims. Cases under the FAA state that...more

California Appellate Court Orders Arbitration and Rules that Claims May Not Proceed On Behalf of a Class Plaintiff in Macy's OT...

A recent decision from a California court of appeals reflects a growing, if at times reluctant, acceptance by California courts of employment arbitration. In Outland v. Macy’s Department Stores, Inc., Case No. A133589 (Ct....more

California Court of Appeal Denies Wage-and-Hour Class Claims and Enforces Arbitration Agreement under Concepcion

Employers in California have been watching closely to see how courts will apply the United States Supreme Court’s decision in AT&T Mobility v. Concepcion, 131 S. Ct. 1740 (2011), which held that the Federal Arbitration Act...more

Washington Supreme Court: FAA Does Not Preempt State Law Prohibiting Arbitration Agreements in Insurance Contracts

The Washington Supreme Court has ruled that the Federal Arbitration Act (FAA) does not preempt a state statute that prohibits binding arbitration agreements in insurance contracts....more

Class Action Waivers Are Enforceable Despite Any State Statutory Right To A Class Action

In Flores v. West Covina Auto Group, --- Cal.Rptr.3d ----, 2013 WL 139200 (Cal.App. 2 Dist. Jan. 11, 2013), the California Court of Appeal extended the U.S. Supreme Court’s landmark decision in AT&T Mobility, Inc. v....more

2012 In Arbitration Law: Is Class Arbitration Naughty Or Nice?

The big issue in arbitration law in 2012 was class arbitration. Many state court opinions that had found class arbitration waivers unconscionable were preempted under federal law based on application of Concepcion. And the...more

Supreme Court Will Now Hear Two Appeals Concerning Class Arbitration

On Friday, December 7, 2012, the Supreme Court granted certiorari in Oxford Health Plans LLC v. John Ivan Sutter MD, No. 12-135 to address whether the parties to an arbitration agreement authorize class arbitration when the...more

SCOTUS Reigns Supreme On Issue Of Arbitration Of Non-Compete Agreements

Some states specifically allow non-compete agreements. Of those states, some have legislation that provides guidelines to parties to a non-compete agreement regarding enforceability. Other states take the approach that...more

U.S. Supreme Court Orders State Court To Adhere To Federal Arbitration Act And Compel Arbitration

The United States Supreme Court recently entered the latest of a series of opinions that prevent state courts from interfering with arbitration on state policy grounds. On November 26, 2012, the Court issued its per curiam...more

Non-Competes Pay a Rare Visit to the U.S. Supreme Court

This week, the U.S. Supreme Court issued a ruling in a non-compete case -- a type of dispute that rarely finds its way to the high court. See Nitro-Lift Technologies v. Lee, 568 U.S. --- (2012)....more

Non-Compete Agreements with Arbitration Clauses Get Boost From US Supreme Court

Employers and employees often enter into non-compete agreements that limit an employee’s ability to compete with an employer during, or after, the employee’s employment. These agreements are often the subject of intense...more

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