News & Analysis as of

Mandatory Arbitration Clauses

New Administration Dismantles More Of Obama Arbitration Regulations

It was only a few weeks ago that this blog covered the reversal of the CMS regulation on arbitration in nursing homes. Now, the Trump Administration has altered course on two other issues of arbitration policy....more

Arbitration Provision Enforceable Despite Questions About Legitimacy Of Remainder Of Agreement

by Carlton Fields on

A New York state trial court has denied a motion to stay arbitration in an action brought by plaintiffs, a private equity firm and its affiliate, against defendants, two of plaintiffs’ former officers, despite plaintiffs’...more

SCOTUS Decisions May Provide A Roadmap to Enforcing Arbitration Clauses Included In Product Packaging

by Cozen O'Connor on

It is open opinion season at the U.S. Supreme Court, and two recent decisions pertaining to the enforceability of arbitration clauses provide guidance to manufacturers looking to bind consumers through the use of product...more

Vallagio Ruling Favorable for Condominium and Planned Community Developers

On June 5, 2017, the Colorado Supreme Court issued its eagerly anticipated ruling in Vallagio at Inverness Residential Condominium Association, Inc. v. Metropolitan Homes, Inc., et.al. (217 CO 69) (“Vallagio”). In its 5-2...more

Draft Changes to Ukrainian Model Gas Storage Agreement re Arbitration Clause

by Dentons on

On 2 June 2017, the Ukrainian Regulator placed at its website draft changes to the Model Gas Storage (Injection, Withdrawal) Agreement (the “Model Agreement”). The changes are referred here to as the “Draft”....more

Sixth Circuit Finds That Mandatory Class Waiver Provisions Violate NLRA

by Saul Ewing LLP on

In a recent appeal before the United States Sixth Circuit, the Court weighed in on an increasingly controversial issue: Whether employers can require employees to agree to a mandatory arbitration provision that requires...more

Alabama Supreme Court Confirms that Mutual Consent Is Not Required to Enforce an Arbitration Clause

Mandatory arbitration clauses have become commonplace in construction contracts. Various groups have formulated generic arbitration language to insert into disputes clauses of contracts. A good example of such language comes...more

Ohio’s Ethical Limitations on the Use of Attorney-Client Arbitration Clauses

by Reminger Co., LPA on

It is essential for attorneys to understand the interplay between risk mitigation/resolution strategies and the rules of professional conduct. After all, when addressing a risk, attorneys must be careful not to run afoul of...more

Employee Benefits Developments - May 2017

by Hodgson Russ LLP on

The Employee Benefits practice group is pleased to present the Benefits Developments Newsletter for the month of May, 2017. Three More Post-Tackett Retiree Healthcare Vesting Decisions - On April 20, 2017, the U.S....more

Third Circuit Permits Limited Discovery On Issue Of Validity Of Arbitration Agreement

by Carlton Fields on

In an unpublished opinion, the Third Circuit affirmed a decision denying a defendant bank’s motion to dismiss a consumer complaint in favor of arbitration when the contract containing the arbitration clause was not referenced...more

Fourth Circuit Again Rejects Arbitration Request Under Payday Loan Agreement

by Goodwin on

On May 10, 2017, the Fourth Circuit affirmed the Middle District of North Carolina’s refusal to compel arbitration under the terms of a payday loan agreement. In Dillon v. BMO Harris Bank, N.A., BMO Harris attempted to compel...more

Third Circuit Holds Overtime Class Action Is Not Subject To Arbitration

by Carlton Fields on

The Third Circuit recently affirmed the decision of a Pennsylvania district court, holding that a class action involving overtime compensation filed against the operating companies of a senior care facility is not subject to...more

Maryland’s Highest Court Finds Small Claims Court Action Waived Right To Arbitrate

It is not uncommon for lenders to exempt small claims actions from their arbitration provisions. The question confronted by the Court of Appeals of Maryland in a recent case was: when a lender opts for small claims court,...more

Arbitration Clauses Extending to Non-Signatory Affiliates: Are They Enforceable?

A recent decision of the New Jersey Court of Appeals considered the enforceability of arbitration agreements by non-signatories. In Foti v. Toyota Motor Sales, U.S.A., Inc., the plaintiff filed a putative class action...more

California Supreme Court Punts on FAA Preemption - Court invalidates waiver of public injunctive relief, declines to address...

Last month, the California Supreme Court handed down its unanimous decision in McGill v. Citibank N.A., holding that an arbitration provision that effectively waives a consumer’s statutory right to seek public injunctive...more

California’s Supreme Court Holds Arbitration Clauses Cannot Waive Public Injunctive Relief

by Robins Kaplan LLP on

In what will likely result in a certiorari petition, the Supreme Court of California unanimously ruled that consumers cannot contractually waive their right to pursue public injunctive relief through a pre-dispute arbitration...more

Louisiana Federal Court Finds Removal Proper As Dispute Could Relate To An Underlying Arbitration Clause In Insurance Policy

by Carlton Fields on

In this case, a Louisiana federal court denied a motion for remand of a former machinist’s asbestos-related claim, finding that an English insurer’s removal from state court was appropriate and that the dispute could relate...more

McGILL v. CITIBANK, N.A.

by Ervin Cohen & Jessup LLP on

I have received a few questions from employers about the recent California Supreme Court decision in McGill v. Citibank, N.A.. The McGill case isn’t an employment law case, but rather deals with a consumer class action....more

Key California Employment Law Cases: February 2017

by Payne & Fears on

The key California employment law cases from February 2017 involve collective bargaining/union and wage and hour issues. - Collective Bargaining/Union Issues - Vasserman v. Henry Mayo Newhall Memorial Hospital, 8 Cal....more

Commercial Division Compels Arbitration of a Contract Claim Based on an Arbitration Clause in a Related Agreement

In Fidilio v. Hoosick Falls Productions, Inc., No. 654066/2016, 2017 BL 107640 (Sup. Ct. Mar. 22, 2017), Justice Eileen Bransten of the New York County Commercial Division granted a motion to compel arbitration of a dispute...more

Forcing the Issue? California Supreme Court Opens Door for Challenges to Mandatory Arbitration Clauses

Consistent with the historical reluctance of California courts to enforce arbitration provisions in consumer contracts, on April 6, 2017, the California Supreme Court ruled that an arbitration provision that waived an...more

Arbitration 101: Why and How to Keep Your Company Out of Court

“Arbitration makes a lot of sense”, Charles Allen states. A general commercial disputes lawyer and currently a partner at Orrick, Herrington & Sutcliffe in Hong Kong, he practices across a wide range of different...more

Dancing On Their Own: The California Supreme Court’s Decision in McGill v. Citibank, N.A. that Class Action Waivers Do Not Apply...

On April 6, 2017, the California Supreme Court struck another blow in its contentious battle with the United States Supreme Court on the enforceability of consumer arbitration clauses subject to the Federal Arbitration Act...more

Business Divorce Nation: Five States, Five Cases

by Farrell Fritz, P.C. on

It’s true that the statutory and common-law rules at play in business divorce cases can vary widely from state to state. But it’s also true that court decisions in one state can influence courts in other states, and can...more

Blood in the Water: Courts Evaluate Standing in Three Recent TCCWNA Class Actions

The rising tide of class actions alleging violations of New Jersey’s Truth-in-Consumer Contract, Warranty and Notice Act (TCCWNA, pronounced “tic-wun-uh”) has been a cause of concern for companies advertising and selling to...more

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