Recently, the California Supreme Court invalidated a mandatory arbitration agreement in OTO, LLC v. Kho (August 29, 2019) finding the agreement was both procedurally and substantively unconscionable. The case involved...more
Utilizing a “sweeping reading of Concepcion,” as characterized by the concurring opinion, the Ninth Circuit has ruled that arguments that “a class action waiver, by itself, is unconscionable under state law or that an...more
The U.S. Supreme Court, in recent years, has provided companies with a powerful tool to avoid class action lawsuits: arbitration. In a series of decisions, the Supreme Court has held that class action waivers in otherwise...more
Businesses across the country regularly bemoan the time and expense of litigation. Even when businesses are successful in defending non-meritorious consumer claims alleging unfair or deceptive practices, false advertising,...more
As we reported last year, in October 2015 the Consumer Financial Protection Bureau published an outline of proposals that would limit the use of arbitration provisions in contracts for consumer financial products. On May 5,...more
New EEOC Suits: Discrimination Based on Sexual Orientation Violates Title VII - Why it matters - The Equal Employment Opportunity Commission (EEOC) filed a pair of landmark lawsuits alleging sex discrimination based...more
In 2014, we blogged about a California state appellate court decision invalidating the arbitration clause in DIRECTV’s consumer contracts. We found that California decision to be noteworthy because it seemed to fly in the...more
On December 14, 2015, the U.S. Supreme Court applied its landmark Concepcion decision and reversed a California appellate court’s ruling that an arbitration clause containing a class arbitration waiver was unenforceable under...more
Last week, in DIRECTV v. Imburgia, the United States Supreme Court issued a decision once again re-affirming the strong federal policy in favor of arbitration. At issue in this case was a service agreement entered into...more
The United States Supreme Court recently reversed a decision by the California Court of Appeal wherein the state court refused to enforce a class action waiver in an arbitration agreement. The Supreme Court enforced the class...more
Last week, the United States Supreme Court issued its opinion in Direct TV v. Imburgia, 577 U.S. ___ (2015). This decision is important for manufacturers of consumer products because it fortifies the ability to incorporate...more
On December 14, 2015, the United States Supreme Court in DIRECTV, Inc. v. Imburgia, 577 U.S. ___, No. 14-462, slip op. at 1 (Dec. 14, 2015), doubled down on its previous holdings that the Federal Arbitration Act (“FAA”)...more
On December 14, 2015, in DirecTV, Inc. v. Imburgia, the U.S. Supreme Court reversed a California State Court of Appeal decision that had invalidated an arbitration provision based on language from the agreement rendering the...more
On Monday, the U.S. Supreme Court issued its highly-anticipated opinion in DirecTV, Inc. v. Imburgia et al., 577 U.S. ___ (2015), which reaffirmed its ruling in AT&T Mobility LLC v. Concepcion, 56 U.S. 333 (2011), dealing...more
Action Item: The United States Supreme Court continues to find that federal law strongly favors arbitration clauses. The Supreme Court’s decision in DIRECTV should provide some reassurance to companies that arbitration...more
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
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
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
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
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
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
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
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
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