Unconscionable Contracts Class Action Arbitration Waivers

News & Analysis as of

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

Arbitration Puzzler: Nevada’s Anti-Waiver Rule Preempted; California’s Anti-Waiver Rule Not Preempted

Two opinions came out recently in disputes over the arbitrability of putative class actions alleging that employees were not paid for overtime (and other labor violations). In one, the Nevada Supreme Court acknowledged that...more

Don’t Throw the Class Waiver Baby Out with the Arbitration Agreement Bathwater

Sound advice that the world has lived with since 1512…until recently flushed by the Ninth Circuit. Not so quick to discard 500 years of wisdom, however, the Supreme Court has agreed to consider whether this idiom will rest in...more

A Call to Action: AB 465 is a Game Changer for California Arbitration Agreements

AB 465 is pending approval from Governor Jerry Brown. If approved, it will go into effect on January 1, 2016. Notably, AB 465 will prohibit California employers from requiring most individuals to enter into arbitration...more

California Legislature Targets Employment Arbitration Agreements

It is no secret that California is no friend to arbitration agreements. As the United States Supreme Court noted in its 2011 opinion in AT&T Mobility LLC v. Concepcion, “California’s courts have been more likely to hold...more

California Supreme Court Upholds Consumer Contract Arbitration Provision Under California’s Unconscionability Framework

In a dispute over the purchase of a car, the purchaser filed a class action in California against the car dealer, and the dealer moved to compel arbitration. The dealer invoked the arbitration agreement contained in the...more

Surprisingly Good News: California Supreme Court Upholds Arbitration Agreement

Many companies doing business in California have had difficulty persuading California courts to enforce their arbitration agreements. Those courts often have used the doctrine of unconscionability to deny enforcement on the...more

The California Supreme Court Holds Consumer Class Action Waivers In Arbitration Provisions Are Enforceable Under Federal Law

On August 3, 2015, the California Supreme Court issued its long-awaited arbitration decision in Sanchez v. Valencia Holding Co., LLC, No. B228027. The Court held that the arbitration provision found in a standard form auto...more

How to Draft Enforceable Class Action and Other Employer-Friendly Waivers

Porreca v. The Rose Group was a class action lawsuit brought by Carly Porreca and Charles Walton, alleging that their employer, Applebee’s Neighborhood Grill and Bar, had violated the Fair Labor Standards Act. After Porreca...more

A Decision to Arbitrate in the Mountain State: The West Virginia Supreme Court of Appeals Rejects Retroactive Application of the...

The West Virginia Supreme Court of Appeals recently issued a decision addressing mandatory arbitration in connection with a residential mortgage loan that will impact litigants in the Mountain State and potentially influence...more

Is Your ADR Clause Enforceable?

A number of recent court decisions have addressed the enforceability of contract clauses that call for alternative dispute resolution procedures instead of traditional courtroom litigation. ...more

A Tale of Three Cases: California's Split Over Concepcion Continues

In state and Federal courts throughout the country, the defense and plaintiffs’ bars are debating the application of the United States Supreme Court’s landmark 2011 decision in AT&T Mobility v. Concepcion, in which the Court...more

Some Class-Action Waiver Clauses Continue to be Held Unenforceable, Even After Concepcion

In a decision dated January 7, 2013, the California Court of Appeal invalidated a mandatory arbitration and class action waiver clause in an automobile sales contract, ruling that the arbitration clause was unconscionable and...more

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