Arbitration Agreements

News & Analysis as of

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

Eighth Circuit Shows How Difficult It Is To Prove Arbitration Agreement Unconscionable Due To Cost

Almost two years ago in American Express Co. v. Italian Colors, SCOTUS significantly narrowed, but did not overrule, the “effective vindication” doctrine, which allows plaintiffs to invalidate an arbitration agreement if it...more

Appellate Court Confirms the Validity of Asymmetric Dispute Resolution Clauses

Dechert lawyers representing a major international bank in court proceedings in a number of regions in southern Russia with respect to claims to recover a total of about US$300 million in loan funds from the guarantors of a...more

Texas Supreme Court Argument Preview - 3/15

On Thursday, March 26, 2015, the Supreme Court of Texas will hear argument in three cases. - No. 13-1026, Royston, Rayzor, Vickery & Williams LLP v. Lopez - The Petitioner law firm seeks to enforce an arbitration...more

Delaware Legislature Introduces Rapid Arbitration Act

The Delaware Rapid Arbitration Act, House Bill 49, was recently introduced in the Delaware General Assembly. The proposed Act would establish a streamlined arbitration procedure to resolve disputes involving Delaware business...more

Eighth Circuit Finds Former Employees Lack Standing To Challenge Employer’s New Arbitration Policy

What’s one way to derail a potentially large collective action about Fair Labor Standards Act violations? To implement a new arbitration policy within days, thereby ensuring that your current employees cannot join the court...more

Question Certified To Second Circuit: Does The Court Or The Arbitrator Decide Whether An Arbitration Agreement Permits Class...

In the Second Circuit, as in other jurisdictions, only exceptional circumstances will justify a departure from the basic policy of postponing appellate review until after the entry of a final judgment. A New York federal...more

Consumer Financial Protection Bureau’s Dodd-Frank Study Scrutinizes Arbitration Agreements & Class Action Waivers

On Tuesday, the Consumer Financial Protection Bureau (“CFPB”) released its long-awaited “Arbitration Study: Report to Congress, pursuant to Dodd–Frank Wall Street Reform and Consumer Protection Act § 1028(a)”, which presents...more

Court Rejects General Unconscionability Argument And Compels Arbitration

Late last year, a district court judge in Connecticut granted Defendant General Electric’s (“GE”) motion to compel arbitration based on Plaintiff’s signature to GE’s Acknowledgement Conditions of Employment Form. Ms. Pingel,...more

Supreme Court Won’t Review Class Arbitrability Question Now, But Second Circuit May Hear Case That Could Generate Circuit Split

The United States Supreme Court recently declined to review a Third Circuit decision holding that ordinarily a court, not an arbitrator, determines the availability of classwide arbitration. Opalinski v. Robert Half...more

CFPB Releases Arbitration Study Report to Congress

On March 10, the Consumer Financial Protection Bureau (CFPB) released its long-awaited, statutorily-mandated report to Congress on the use of pre-dispute arbitration provisions in consumer financial products. As we predicted...more

The CFPB and the Future of Arbitration Clauses

The CFPB has issued a report regarding mandatory consumer arbitration clauses, a sign that arbitration clauses may become passé. On March 10, the Consumer Financial Protection Bureau (CFPB), as required by section...more

CFPB Says Arbitration Agreements Limit Consumer Relief in Class Actions; New Regulations on the Horizon?

The Supreme Court’s 2011 decision in AT&T Mobility LLC v. Concepcion upheld an arbitration clause requiring arbitration of claims individually, thereby effectively preventing class actions. While the consumer finance industry...more

Tactics Kill Arb Agreement

In Roe v. SFBSC Management, LLC, No. 14-cv-03616 (N.D. Cal. Mar. 2, 2015), a federal district court in California rejected a night club’s attempt to compel arbitration by a class of performers who claimed they were...more

Arbitration Agreements Can Backfire on Employers

It is no secret that arbitration agreements may greatly reduce the risks that many employers face in disputes with employees. For example, when used correctly, such agreements can curb exposure to class actions by forcing...more

Arbitration Agreements in Residency Contracts Offer Valuable Protections—Part II

As I explained back in December, arbitration agreements can save your company a significant amount of money. However, not all arbitration agreements are created equal. Although the law varies from state to state, here...more

California Court Rules on Whether to Compel Arbitration Where Employer Could Not Authenticate Employee’s Electronic Signature

Ruiz v. Moss Bros. Auto Group., Inc., No.E057529 (December 23, 2014): Challenges to the validity and enforcement of arbitration agreements continue to be a hotly litigated area of California wage and hour law, specifically...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

Missouri Appellate Court Strikes Down Another Arbitration Agreement

The Missouri Court of Appeals has struck down an arbitration agreement because it included a common clause requiring the employee to arbitrate all of her claims but did not require the company to arbitrate all of its claims....more

What’s Ahead in 2015 for Retailers in Labor and Employment Law? Part I

The recent Ogletree Deakins webinar, “What’s Ahead in 2015 for Retailers in Labor and Employment Law,” featured leaders in the retail industry and labor and employment attorneys—Randel K. Johnson, senior vice president of the...more

Rare Claim Falls Outside Arbitration Agreement, Creates Piecemeal Litigation

Because of the strong federal policy favoring arbitration, and cases providing that any doubt about the scope of an arbitration agreement must be resolved in favor of arbitration, it is uncommon to find a decision holding...more

Seventh Circuit Speaks Again on How the Wisconsin Fair Dealership Law Applies in Arbitration

A few months ago, we commented on an aspect of the interaction between the Wisconsin Fair Dealership Law (WFDL), Wis. Stat. ch. 135, and arbitration, as discussed by the Seventh Circuit in Everett v. Paul Davis Restoration,...more

Arbitration Clauses In Employment Contracts

The Federal Arbitration Act requires courts to enforce clauses in commercial contracts that require arbitration of disputes. The U.S. Supreme Court has ruled that transportation workers engaged in interstate commerce are...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

Court Finds Agreement to Arbitrate in Home Mortgage Invalid

The United States District Court For The Southern District Of Mississippi, Southern Division, recently found an agreement to arbitrate in a home mortgage was invalid in Richards v. Gibson. The court cited 15 U.S.C. §...more

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