News & Analysis as of

Unconscionable Contracts Class Action

Forcing the Issue? California Supreme Court Opens Door for Challenges to Mandatory Arbitration Clauses

Consistent with the historical reluctance of California courts to enforce arbitration provisions in consumer contracts, on April 6, 2017, the California Supreme Court ruled that an arbitration provision that waived an...more

Chipping Away at Arbitration: California Supreme Court Further Limits Arbitration Waivers

by Hirschfeld Kraemer LLP on

On April 6, 2017, the California Supreme Court held that an arbitration agreement waiving the right to public injunctive relief is contrary to California public policy and is unenforceable under California law. In McGill...more

Recent Decisions Clarify (Un)Enforceability of Class Action Waivers in Employment Agreements

Companies looking to waive class action rights of employees may instead be waving goodbye to provisions in their employment contracts. Two recent decisions in California—one administrative and one in the 9th Circuit—recently...more

California Court of Appeal Reinforces Prior Holdings and Allows Employer to Enforce Arbitration Award in Contract of Adhesion

by Selman Breitman LLP on

In Da Loc Nguyen v. Applied Medical Resources, No. G057702 (Cal. Ct. App. October 14, 2016) (hereinafter “Nguyen”), the California Court of Appeal upheld a ruling compelling arbitration of plaintiff’s individual claims...more

Federal Appeals Court Hands Uber Major Victory In Arbitration Agreement Fight

by Fisher Phillips on

The 9th Circuit Court of Appeals delivered a significant victory to Uber and other gig economy businesses by reversing a trial court’s denials of Uber’s motions to compel arbitration in companion class action lawsuits brought...more

Consumer Financial Protection Bureau Publishes Proposed Rule Precluding Class Action Waivers in Arbitration Clauses

by Pierce Atwood LLP on

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

Article: February 2016: Class Action Litigation Update: Supreme Court Upholds Arbitration Agreement in DIRECTV Case.

The Supreme Court recently added another decision to a growing body of law reversing state courts for refusing to enforce arbitration agreements. The decision, DIRECTV v. Imburgia, 135 S. Ct. 1547 (2015), concerned the...more

Advertising Law - January 2016 #2

Uber Drives Settlement With NY AG Over Data Breach, Privacy Violations - In a pair of settlements, ride-sharing company Uber agreed to pay a $20,000 fine for failing to report a data breach in a timely manner as...more

What the United States Supreme Court’s Decision in Direct TV v. Imburgia Means For Your Consumer Agreements and Arbitration...

by Cozen O'Connor on

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

Supreme Court Reiterates The FAA’s Preemptive Authority

by Genova Burns LLC on

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

United States Supreme Court Once Again Rejects California’s Attempt To Void Class Arbitration Waivers

by Stoel Rives LLP on

In DIRECTV, Inc. v. Imburgia, a decision released this week, the United States Supreme Court rejected the California Court of Appeal’s interpretation of a binding arbitration provision that would have rendered unenforceable a...more

Supreme Court to California Courts: You Can’t Ignore Us or the FAA

by Seyfarth Shaw LLP on

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

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

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

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

by Carlton Fields on

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

California Supreme Court Upholds Arbitration Clause, but Unconscionability Remains a Defense to Arbitration

by Ballard Spahr LLP on

The California Supreme Court issued its long-awaited decision in Sanchez v. Valencia Holding Company, LLC, on August 3, 2015, reversing a finding by the Court of Appeal that an arbitration provision was unconscionable...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

by Burns & Levinson LLP on

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

Halloween Special: Scary Results If Employers Overreach In Arbitration Clauses

No haunted house can scare general counsel as much as an opinion invalidating their company’s arbitration clause and thereby allowing a class action to proceed. So, here is a Halloween tale for all to keep in mind....more

Is Your ADR Clause Enforceable?

by Baker Donelson on

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

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