Mandatory Arbitration Clauses Class Action Federal Arbitration Act

News & Analysis as of

Court Grants Motion To Stay Action Pending Arbitration, And Found That Issue Of Whether Arbitration Clause Allows For Class...

In this case, Jeffrey Hedrick brought an action in Kansas federal court on behalf of himself and others similarly situated under the Fair Labor Standards Act (“FLSA”) against BNC National Bank, Hedrick’s employer. The bank...more

Seventh Circuit Holds Class Action Waivers are Unlawful and Unenforceable Creating a Circuit Split

On May 26, 2016, in the matter of Lewis v. Epic Systems Corporation, the U.S. Court of Appeals for the Seventh Circuit held that an arbitration agreement, which required employees to submit to individual arbitration for any...more

Out On A Limb, 7th Circuit Creates Circuit Split Over Class Arbitration For Employees

Of all the federal circuit courts, I was not expecting the 7th Circuit to venture out on a limb to support the NLRB’s interpretation of the National Labor Relations Act (NLRA) as precluding class arbitration waivers. ...more

Seventh Circuit Finds Class Action Waivers in Arbitration Agreements are Illegal and Unenforceable under the NLRA

On May 26, 2016, the U.S. Court of Appeals for the Seventh Circuit issued its decision in Lewis v. Epic-Systems Corp., finding that the company's arbitration agreement, which prohibits employees from participating in “any...more

Fourth Circuit Considers Whether Arbitration Agreement Was Binding Where Parties Modified Contract Through Conduct

In early April, the Fourth Circuit Court of Appeals considered whether an arbitration agreement was “a written provision” for purposes of the Federal Arbitration Act where the parties modified the contract through their...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

Emerging Trends in Arbitration: Battle Brewing Between Executive and Judicial Branches

In recent years, arbitration has become a divisive issue. Exemplifying the increased public focus on arbitration, The New York Times ran a three-part series in 2015 that was very critical of the state of arbitration law. In...more

Retail and Consumer Products Law Roundup - November 2015

We are pleased to share with you the first issue of Manatt's Retail and Consumer Products Law Roundup. The newsletter will be published on a monthly basis and will survey topics of critical importance to the retail,...more

The Beginning of the End of Arbitration Clauses in Consumer Finance Contracts?

Are contractual arbitration clauses harmful to consumers of financial products and services? The Consumer Financial Protection Bureau (the “CFPB”) appears to think so. On March 10, 2015, the CFPB released its 2015 Arbitration...more

The Consumer Financial Protection Bureau Takes Aim at Class Action Waivers in Arbitration Clauses

The Consumer Financial Protection Bureau (CFPB) last week announced its intent to launch a rulemaking process that would prohibit companies from using arbitration clauses that waive class action lawsuits. The CFPB's proposal...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

Supreme Court Agrees to Review California Rule Invalidating Contractor Arbitration Agreements

On October 1, the U.S. Supreme Court agreed to hear the appeal of a company whose mandatory arbitration agreements with its contractors were deemed invalid by California state courts. Once again, the Court will determine...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

U.S. Supreme Court Refuses to Hear Iskanian v. CLS Transportation Appeal

Last summer, the California Supreme Court ruled in Iskanian v. CLS Transportation Los Angeles, LLC that the Federal Arbitration Act (FAA) preempted California’s policy against enforcement of class action waivers in...more

U.S. Supreme Court Declines Review of California’s Iskanian Decision – California State and Federal Courts Remain Divided on PAGA...

The U.S. Supreme Court has declined to review California high court’s landmark decision in Iskanian v. CLS Transportation Los Angeles, which held that arbitration agreements with mandatory class waivers are generally...more

No Waiver Of PAGA Representative Claims (Yet)

This week, the U.S. Supreme Court denied certiorari in connection with the California Supreme Court’s decision in Iskanian v. CLS Transportation Los Angleles, LLC. Had the Court heard the Iskanian case, it was expected to...more

California’s Inconsistent Treatment of Pre-Dispute Waivers in Arbitration Agreements Will Remain in Place

This week, the U.S. Supreme Court declined to grant review in Iskanian v. CLS Transportation Los Angeles, LLC, leaving in place a California Supreme Court holding that pre-dispute arbitration agreements cannot require...more

U.S. Supreme Court Tires (For Now) of Playing “Whack-a-Mole” With California Over Arbitration

On January 20, 2015, the U.S. Supreme Court denied the petition for certiorari filed in CLS Transp. Los Angeles, LLC v. Iskanian, a case in which the California Supreme Court held that waivers of employees’ right to bring...more

Supremes Leave PAGA Representative Claims Intact

On January 20, 2015, the U.S. Supreme Court denied review of CLS Transportation Los Angeles, LLC v. Iskanian ("Iskanian"), a case which would have determined whether employees in California could continue to bring...more

The Supreme Court’s denial of certiorari in Iskanian only hardens the federal-state divide over PAGA claims

The divide continues between California and federal law on whether an arbitration agreement can entirely waive an employee’s ability to seek classwide or multiparty representational relief. The Supreme Court on Tuesday denied...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

California Supreme Court Rules that Employers Are Entitled to Include Class Action Waivers in Arbitration Agreements

In a welcome development for California businesses, the California Supreme Court issued a favorable ruling on June 23, 2014, holding that California law permits employers to require employees to sign arbitration agreements...more

California Supreme Court "Green Lights" Class Action Waivers in Arbitration Agreements

On June 23, the California Supreme Court in Iskanian v. CLS Transportation, a case involving state wage and hour claims, recognized that the U.S. Supreme Court's 2011 Concepcion decision effectively invalidated the California...more

California Supreme Court Upholds Employment Class Action Waivers, but Rejects Waivers of PAGA Claims

The California Supreme Court issued an important decision last week on the enforceability of employment class action waivers included in arbitration agreements. The result: private parties can contract for the waiver of the...more

California Supreme Court Enforces Class Action Waivers in Employee Arbitration Agreements

However, the court found PAGA representative action waivers unenforceable; employers should consider practical implications with respect to arbitration agreements. On June 23, the California Supreme Court issued its...more

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