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Arbitration Agreements Unconscionable Contracts

Ervin Cohen & Jessup LLP

To Sever or Not to Sever, That is the Question For Courts Reviewing Employment Arbitration Agreements for Enforceability

Less than a year ago, the California Supreme Court in Ramirez v. Charter Communications, Inc. opined, in the context of employment arbitration agreements, that there is no bright line rule that requires a court to refuse...more

Ballard Spahr LLP

New Jersey Supreme Court Enforces Stand-Alone Class Action Waiver

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Earlier this year, the New Jersey Supreme Court held in Pace v. Hamilton Cove that class action waivers in consumer contracts that do not contain an arbitration clause (i.e., a stand-alone class action waiver) are not per se...more

McGlinchey Stafford

Delegation Clause + Mass Arbitration Protocol = Unconscionable Arbitration Agreement

McGlinchey Stafford on

Recently, the Ninth Circuit Court of Appeals affirmed a district court’s decision finding a delegation clause in an arbitration agreement to be both procedurally and substantively unconscionable and, moreover, that...more

Benesch

Ninth Circuit Provides Long-Awaited Guidance on Mass Arbitration Provisions

Benesch on

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

Troutman Pepper Locke

Ninth Circuit Issues Decision Limiting Scope of Concepcion

Troutman Pepper Locke on

In Heckman v. Live Nation Entertainment, Inc., a panel of the Ninth Circuit affirmed a lower court decision refusing to enforce the Ticketmaster arbitration provision in a purported consumer antitrust class action brought...more

Fenwick & West LLP

Ninth Circuit Nixes Live Nation’s ‘Unconscionable’ Arbitration Agreement

Fenwick & West LLP on

On October 28, 2024, the Ninth Circuit affirmed the district court’s ruling in Heckman v. Live Nation, finding Live Nation’s Ticketmaster arbitration agreement unconscionable and therefore unenforceable based on their terms...more

Kilpatrick

California Supreme Court outlines severance standards for unconscionable contract provisions in arbitration case

Kilpatrick on

Issues surrounding unconscionability and severance are commonplace in motions to compel arbitration, especially in California. Under California Civil Code section 1670.5, a court has three options when presented with an...more

Ervin Cohen & Jessup LLP

Severing Unconscionable Terms in Employment Arbitration Agreements

In August 2000, the California Supreme Court handed down a landmark ruling that changed the face of employment arbitration agreements going forward. That case, known as Armendariz v. Foundation Health Psychcare Services,...more

Troutman Pepper Locke

EDVA Judge Invalidates Arbitration Clause in Online Terms and Conditions

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In a recent decision, EDVA Judge Rossie Alston invalidated the arbitration clause in the terms and conditions for online sales through the Lowe’s Home Centers website on the grounds that the terms and conditions were illusory...more

Ervin Cohen & Jessup LLP

Overbroad Employment Arbitration Agreements Will Not Be Enforced in California

Arbitration agreements, at their core, are contracts. As with any contract, there must be “mutuality” or, more colloquially, a “meeting of the minds” on what the contract is intended to encompass. For this reason, employment...more

Kilpatrick

Ninth Circuit decides two pro-arbitration cases

Kilpatrick on

The Ninth Circuit concluded that arbitration agreements were enforceable in two opinions that addressed three significant arbitration issues: (1) the standards applicable to the mutual assent analysis in online transactions;...more

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

California Appellate Decision Raises New Considerations for Arbitration Agreements

A California appellate court recently denied a motion to compel arbitration, finding the agreement unconscionable in part because it (1) applied to all claims rather than just those arising from employment, (2) was unlimited...more

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

California Supreme Court Says Severing Unconscionable Terms From Arbitration Agreements Is a Question of Fairness

On July 15, 2024, the Supreme Court of California issued a decision that could provide courts in the state with significant discretion to refuse to enforce employment arbitration agreements even if only one term is determined...more

CDF Labor Law LLP

CA Supreme Court: No Three-Strikes Rule For Enforcement of Arbitration Agreements

CDF Labor Law LLP on

In a recent decision, the California Supreme Court held that courts cannot refuse to enforce arbitration agreements simply by finding that three or more provisions are unconscionable. Rather, courts must use a three-prong...more

Troutman Pepper Locke

Ninth Circuit Reverses District Court, Sending Opportunity Financial Lawsuit to Arbitration

Troutman Pepper Locke on

The U.S. Court of Appeals for the Ninth Circuit recently reversed a district court’s ruling, which had denied a motion to compel arbitration of Opportunity Financial (OppFi) on the basis that the arbitration clause was...more

Stikeman Elliott LLP

Meal Delivery Service’s Mandatory Arbitration Clause for Couriers Unconscionable: Manitoba Court of Appeal

Stikeman Elliott LLP on

The Manitoba Court of Appeal (the “Court”) in Pokornik v. SkipTheDishes Restaurant Services Inc., 2024 MBCA 3, recently upheld a lower court decision dismissing a large online meal delivery service’s motion to stay a class...more

Carlton Fields

Ninth Circuit Reverses Order Denying Motion to Compel Arbitration, Concluding “Delegation Provision” Is Enforceable

Carlton Fields on

Noting the court was deciding, as a matter of first impression, “what a party must do to specifically challenge a delegation provision and what a court may consider when evaluating this challenge,” the Ninth Circuit Court of...more

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

California Court of Appeal Rules Arbitration Agreement Is Unenforceable

A California appellate court recently denied enforcement of an arbitration agreement because (1) it contained provisions the court found problematic, and (2) the employer presented the agreement to the employee for electronic...more

Carlton Fields

Eleventh Circuit Affirms Order Compelling Arbitration of Discrimination Claims, Rejects Argument That Arbitration Agreement Was...

Carlton Fields on

In Payne v. Savannah College of Art and Design Inc., the Eleventh Circuit Court of Appeals affirmed a district court order denying a motion to compel arbitration of plaintiff Isaac Payne’s discrimination-based claims. The...more

McGlinchey Stafford

Can My Agent Bind Me to an Arbitration Agreement with a Third Party? - McGlinchey Commercial Law Bulletin - August 18, 2023

McGlinchey Stafford on

Cincinnati v. PE Alms Hill Realty, LLC, 1st Dist. Hamilton, 2023-Ohio-2784. In this appeal, the First Appellate District affirmed the trial court’s decision to grant commercial lenders summary judgment on their breach of...more

Fisher Phillips

SCOTUS Ruling Protects Top 3 Benefits of Arbitration: Key Takeaways for Employers

Fisher Phillips on

Employers seeking to move workplace claims from the courthouse to arbitration received some good news Friday from the U.S. Supreme Court. If a trial court denies a party’s request to compel arbitration, the court must pause...more

Fisher Phillips

SCOTUS Predictions: Divided Court Will Reach Close Decision in Critical Arbitration Case

Fisher Phillips on

Employers that face lawsuits from employees often seek to move such claims from the courthouse to arbitration. But what happens if the trial court refuses to compel arbitration and the employer appeals the decision? Should...more

Haight Brown & Bonesteel LLP

Court of Appeal Finds Arbitration Agreement Presented as a Stand-alone Document was Not Unconscionable

The Second District Court of Appeal issued an opinion in Rocha v. U-Haul Co. of California, et al. (Cal. Ct. App., Feb. 2, 2023, No. B322599) 2023 WL 1462594, addressing questions of procedural and substantive...more

Ballard Spahr LLP

Verizon appeal on mass arbitration issues backed by prominent industry groups

Ballard Spahr LLP on

Earlier this week, we wrote about Verizon’s appeal to the Ninth Circuit from a district court ruling that the bellwether provision in its arbitration clause was unconscionable. Both the U.S. Chamber of Commerce and the...more

Carlton Fields

Eleventh Circuit Enforces Employee Arbitration Agreement, Concluding That Agreement Was Not Unconscionable

Carlton Fields on

In Lambert v. Signature Healthcare LLC, the Eleventh Circuit Court of Appeals reversed the district court’s denial of the defendants-appellants’ motion to dismiss and to compel arbitration under the FAA, holding that the...more

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