News & Analysis as of

Arbitration Agreements Preemption

Foley & Lardner LLP

Second Circuit Holds New York Convention is Self-Executing and Not Preempted by McCarran Ferguson Act

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On May 8, 2025, United States Court of Appeals for the Second Circuit held, in Certain Underwriters at Lloyd’s, London v. 3131 Veterans Blvd LLC, and Certain Underwriters at Lloyd’s, London v. Mpire Properties LLC, Docket...more

Sheppard Mullin Richter & Hampton LLP

Choice-of-Law Provisions Cannot Circumvent Ending Forced Arbitration Act, Court of Appeal Rules

On February 3, 2025, the California First District Court of Appeal held that a party to an arbitration agreement cannot rely on a choice-of-law provision to wire around the federal Ending Forced Arbitration of Sexual Assault...more

Porter Hedges LLP

Choice of Law and Federal Preemption: Why Texas Law May Not Govern Your Texas Project Despite the Home Rule Statute

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When entering into construction contracts, the question of which state’s laws will govern is a pivotal consideration. Choice of law has real-world implications for how construction disputes are resolved. Different states have...more

Troutman Pepper Locke

Will the California Supreme Court Finally Curtail the State’s Historic Hostility to Arbitration?

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California is famously inhospitable to arbitration. In fact, the U.S. Supreme Court struck down California laws disfavoring arbitration on no fewer than six occasions between 1987 and 2022....more

Benesch

Ninth Circuit Provides Long-Awaited Guidance on Mass Arbitration Provisions

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In the long-awaited newest chapter of case law discussing the validity and enforceability of arbitration clauses and class action waivers, the Ninth Circuit on October 28, 2024, dealt a setback, though not a fatal blow, to...more

CDF Labor Law LLP

Importance of FAA in California Employment Arbitration Agreements Underscored

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Employers may be able to breathe a sigh of relief as a California Court of Appeal concluded that the Federal Arbitration Act (“FAA”) preempts state law that allowed employees to wriggle out of arbitration and win thousands of...more

Carlton Fields

Court Holds Federal Law Governs FAA Arbitration Dispute Related to Surplus Lines Insurance Contract, Compels Arbitration Under...

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Harbor Homeowner’s Association Inc. sued its insurers in Louisiana state court seeking to recover damages allegedly caused by the insurers’ failure to pay claims related to Hurricane Ida. The insurers removed to federal...more

Stokes Wagner

California Supreme Court Averts SCOTUS Viking River Decision, Allowing Litigation of PAGA Claims Despite Arbitration Agreement

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Last year, the U.S. Supreme Court issued an employer-friendly decision in Viking River Cruises v. Moriana. There, it held that the Federal Arbitration Act (FAA) preempts the California Private Attorneys General Act (PAGA)...more

Morgan Lewis

Employee Required to Arbitrate Individual PAGA Claim Maintains Standing to Pursue Representative PAGA Court Claims

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In Adolph v. Uber Technologies Inc., the California Supreme Court held that it is not bound by the US Supreme Court’s interpretation of state law in Viking River Cruises v. Moriana, ruling that an order compelling arbitration...more

BakerHostetler

PAGA Standing Allows a Plaintiff to Have One Foot in a Compelled Individual Arbitration and One Foot in a Representative Court...

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On July 17, the California Supreme Court issued its decision in Adolph v. Uber Technologies, Inc. (Cal. Sup. Ct. Case No. S274671), in which it addressed whether a plaintiff who is compelled to arbitrate their individual...more

Carlton Fields

First Circuit Holds That New York Convention Preempts Puerto Rican Law

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The First Circuit Court of Appeals has held that the New York Convention applies to an insurance arbitration dispute between a Puerto Rican company and Lloyd’s of London and that the convention preempts a Puerto Rican law...more

Faegre Drinker Biddle & Reath LLP

First Circuit Holds That New York Convention Preempts Contrary State Laws Barring International Arbitration of Insurance Disputes

Background On May 19, 2023, the First Circuit Court of Appeals ruled in Green Enterprises, LLC v. Hiscox Syndicates Ltd. at Lloyd’s of London that the New York Convention on the Recognition and Enforcement of Foreign Arbitral...more

Venable LLP

Ninth Circuit Puts Mandatory Employment Arbitration Agreements Back on the Menu

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Once again, the California legislature's attempt to kneecap arbitration agreements in the employment arena has been swept aside by a federal court. As of February 15, 2023, California employers may continue to require...more

Faegre Drinker Biddle & Reath LLP

Ninth Circuit Rules California Employers Can Require Arbitration Agreements

Some good news for California employers. Recently, the U.S. Court of Appeals for the Ninth Circuit ruled that California employers can require employees and applicants to sign arbitration agreements as a condition of...more

Polsinelli

Mandatory Arbitration Agreements Remain Valid in California

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California employers received welcome reassurance last week that they are free to require employees enter into arbitration agreements as a condition of employment. This is the result of an opinion from the Ninth Circuit last...more

Stradling Yocca Carlson & Rauth

All For Naught: California Employers Can Continue To Require Workers to Sign Arbitration Agreements

After more than three years of legal challenges, California’s Assembly Bill 51 was completely struck down as preempted by the Federal Arbitration Act in a Ninth Circuit ruling on February 15, 2023. California employers can...more

McDermott Will & Emery

Ninth Circuit Holds That California AB 51 Is Preempted by the FAA

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As of February 15, 2023, employers in California may once again require mandatory arbitration as the US Court of Appeals for the Ninth Circuit held that the Federal Arbitration Act (FAA) preempts Assembly Bill 51 (AB 51), a...more

Greenberg Glusker LLP

One Step Forward For Arbitration Agreements, Two Steps Back For Non-Disparagement Provisions

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Mandatory Arbitration Agreements for Employees Are “On” Again...for Now. Once upon a time, before a certain virus captured all of our attention, the California legislature enacted Assembly Bill 51 (AB 51), which prohibits...more

Benesch

Ninth Circuit Nixes California’s Employment Arbitration Agreement Ban

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Last week, the Ninth Circuit issued a significant ruling in Chamber of Commerce v. Bonta, concluding that California’s Assembly Bill 51 (“AB 51”) is preempted by the Federal Arbitration Act (“FAA”). AB 51, which was passed by...more

Payne & Fears

Employers May Require Arbitration Agreements as Condition of Employment, Federal Appeals Court Holds

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After more than three years of litigation, the Ninth Circuit has held that AB 51, California’s attempt to ban mandatory employment arbitration agreements, is unenforceable....more

McGuireWoods LLP

Ninth Circuit Holds Federal Arbitration Act Preempts California Law Prohibiting “Forced Arbitration”

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On Feb. 15, 2023, the Ninth U.S. Circuit Court of Appeals affirmed a district court’s ruling that the Federal Arbitration Act (FAA) preempts California Assembly Bill 51 (AB 51), which made it a criminal offense for an...more

Littler

Ninth Circuit Allows Enforcement of Employment Arbitration Agreements in California

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In a significant win for California employers, the Ninth Circuit Court of Appeals, in Chamber of Commerce v. Bonta,1 affirmed a district court injunction striking down California Assembly Bill 51 (“AB 51”) as preempted by the...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ninth Circuit Blocks California’s Ban on Mandatory Arbitration in Employment

On February 15, 2023, the Ninth Circuit Court of Appeals blocked a 2020 California law that attempted to prohibit employers from requiring employees and job applicants to agree to arbitration as a condition of employment. The...more

Fisher Phillips

Federal Appeals Court Blocks California’s Ban on Mandatory Arbitration Agreements: 7 Key Takeaways for Employers

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A federal appeals court just paved the way for California employers to continue utilizing mandatory arbitration agreements with employees and job applicants. You may be familiar with the litigation roller coaster of...more

Hinshaw & Culbertson LLP

A Bronx Tale: A New York State Trial Judge Calls Out New York State's Long-Standing Heightened Standard of Proving the Making of...

The Bronx, where I came of age and grew into young adulthood, is well-known for the scrap of its residents. That can also be said of its judiciary. On December 20, 2022, in Wu v. Uber Techs., Inc.,[i] the New York State...more

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