Mandatory Arbitration Clauses Arbitration Agreements

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“The ABC’S of ACB’S” – Arbitration Clauses in Bankruptcy Court

You’ve decided that your business will fare better if you put a mandatory arbitration clause into all of your contracts. You want to be fair to your counterparty, so you choose to arbitrate under the Federal Arbitration Act....more

Proposed Legislation Would Set Back Corporations’ Use of Arbitration Clauses

The Restoring Statutory Rights Act of 2016, sponsored by Democratic Senator Patrick Leahy, was sent to congressional committee on February 4, 2016 for consideration. The bill would place restrictions on companies’ use...more

Ninth Circuit: Arbitration Provision Contained In Sham Agreement Is Not Enforceable

The Ninth Circuit reversed a district court ruling that had compelled arbitration, holding that a party may not enforce an arbitration agreement where the clause is contained in a nonbinding contract. The parties had entered...more

Court OKs Arbitration Agreement Permitting Injunctive Relief

Seyfarth Synopsis in a Second: A clause in an employment arbitration agreement that authorizes preliminary injunctive relief in court does not make the agreement unenforceable. As a general proposition, arbitration...more

Fourth Circuit Finds Availability Of Class Arbitration Is Question For Courts, Not Arbitrators

Joining the Sixth and Third Circuit Courts of Appeals, the Fourth Circuit this week held that “whether an arbitration clause permits class arbitration is a gateway question of arbitrability for the court.” Dell Web...more

Ninth Circuit Refuses To Enforce Arbitration Clause In Sham Franchise Agreement

A short new opinion from the Ninth Circuit may run counter to long-standing Supreme Court precedent. In Casa Del Caffe Vergnano v. Italflavors, 2016 WL 1016779 (9th Cir. Mar. 15, 2016), the court refused to enforce an...more

Have Your Cake and Eat It, Too? Handbook Contract Disclaimers & Mandatory Arbitration Policies

A New Jersey court recently used the so-called contract “disclaimer” language in an employer’s handbook to preclude the employer from enforcing a mandatory arbitration program contained in that same handbook. The court’s...more

Employers Should Not Rely on Employer Handbooks to Create Enforceable Arbitration Agreements

In a recent published opinion, the New Jersey Appellate Division held that an arbitration clause in an employee handbook was unenforceable because the handbook also contained standard disclaimer language stating that the...more

Fourth Circuit Says Mandatory Arbitration Agreement in Employee Handbook is Unenforceable

Employers seeking to avoid disputes in court with employees increasingly seek to use mandatory arbitration agreements. Typically, these agreements take the form of stand-alone written documents, signed by both parties....more

Deciding Who Decides Questions of Arbitrability: A Survey of American Law and a Comparative Perspective

Parties to commercial disputes frequently encounter and litigate the threshold issue whether their dispute is within the scope of an arbitration clause and must therefore be arbitrated rather than litigated in court. Even...more

Washington Employers, Be Careful When Demanding Arbitration Agreements from Current Employees

Yesterday, in case called Mayne v. Monaco Enterprises, Inc., a Washington Appellate Court struck down an arbitration clause because the employee faced immediate termination if he did not sign. The employee in this case had...more

Are English arbitration awards ‘final, conclusive and binding’? – revisiting the right to challenge arbitration awards in English...

Recent debate on the right to appeal - Under limited circumstances, a party to an English arbitration award who is dissatisfied with the result can challenge that award in the courts. There are concerns that the current...more

New Jersey Arbitration Agreements Should Explicitly Waive the Right to Bring Claims in Court

On October 26, 2015, in the case Barr v. Bishop Rosen & Co., the New Jersey Appellate Division issued its first published decision applying the New Jersey Supreme Court’s decision in Atalese v. U.S. Legal Services Group LP to...more

CFPB Launches New Battle: Proposal to Ban Arbitration Clauses Blocking Group Action

Why it matters - The Consumer Financial Protection Bureau (CFPB) has picked its next battle: a proposal to limit the terms of mandatory pre-dispute arbitration agreements in contracts involving consumer financial...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

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

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

California Enacts a Raft of New Employment Legislation

The latest legislative session has just ended, and, true to form, the California Legislature has added more than a dozen new laws affecting employers doing business in the nation’s largest state.  These statutes are in...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

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

Employment News Alert: Two Key Employer Victories

AB 465 was vetoed. This bill sought to bar mandatory employment arbitration agreements. This would have caused lawsuits to increase and would have driven up litigation costs for California’s employers. In vetoing AB 465,...more

CFPB Proposes Banning Some Arbitration Clauses, Resurrecting Consumer Contract Class Actions

On October 7, 2015, the Consumer Financial Protection Bureau (CFPB) announced that it is exploring a rulemaking to eliminate the use of certain arbitration agreements in consumer contracts that block consumers from...more

CFPB to Consumer Financial Services Companies: Prepare to Wave Goodbye to Class Action Waivers

The Consumer Financial Protection Bureau (CFPB) is considering proposing rules that would prohibit consumer financial services companies from using class action waivers in consumer arbitration clauses, the CFPB announced...more

Ninth Circuit Steals a PAGe from California Courts’ Playbook

Since the California Supreme Court’s 2014 ruling in Iskanian v. CLS Transportation that claims under the Private Attorneys General Act (“PAGA”) are not subject to arbitration, California federal district courts have rejected...more

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