News & Analysis as of

Arbitration Agreements Unconscionable Contracts

Court Finds Confidentiality Provision In Arbitration Agreement Unconscionable, Compels Consumer Arbitration

by Carlton Fields on

The Eleventh Circuit has determined that a confidentiality provision in an arbitration clause was substantively unconscionable. The case involved a putative class action by David Johnson alleging that KeyBank National...more

Ninth Circuit Affirms Application Of Arbitration Clause Found In Amazon’s Conditions Of Use

by Carlton Fields on

Applying Washington law, the Ninth Circuit Court of Appeals affirmed a California federal court’s ruling that Amazon’s Conditions of Use (COU) created a valid contract between Amazon and its customers, and there was no...more

Enforcing Nursing Home Arbitration Agreements Post-Kindred

Just five months ago, the U.S. Supreme Court weighed in on a nursing home arbitration dispute in Kindred Nursing Centers v. Clark. It held that the Kentucky supreme court’s rationale for not enforcing the arbitration...more

Chris Lazarini Examines Unconscionability Claims in Arbitration Clause

by Bass, Berry & Sims PLC on

Bass, Berry & Sims attorney Chris Lazarini examined a case in which a plaintiff filed a breach of fiduciary duty claim in federal court and opposed defendants' efforts to move the claims to arbitration. The plaintiff claimed...more

Hawaiian Punch: State Supreme Court Stands Up to SCOTUS on Arbitration

In January of 2016, SCOTUS granted review of an arbitration case from Hawaii, but summarily vacated and remanded it without analysis. (Unless you consider “Please read DIRECTV” substantive analysis.) Here’s the risk of that...more

Ninth Circuit Finds Arbitration Agreement In Employment Application Was Unconscionable

by Carlton Fields on

In this case, Ritarose Capili, a sales associate, brought an action against her former employer The Finish Line, Inc. (“Finish Line”), an athletic retailer in California federal court. Finish Line made a motion to compel...more

Eighth Circuit Affirms Order Compelling Arbitration, Rejecting Contract Defenses Of Unconscionability And Lack Of Consideration

by Carlton Fields on

The Eighth Circuit affirmed an order compelling arbitration in a case filed by a volunteer concession worker against an operator of concessions at a sports stadium in St. Louis. The concession worker had volunteered to work...more

Shouldn't You Be Using Arbitration Agreements to Reduce the Costs of Litigation and the Risk of Class Action Claims?

by Foley & Lardner LLP on

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

Key California Employment Law Cases: March 2017

by Payne & Fears on

This month’s key California employment law cases involve arbitration and PAGA issues. Arbitration - Farrar v. Direct Commerce, Inc., 9 Cal. App. 5th 1257, 215 Cal. Rptr. 3d 785 (2017) - Summary: Arbitration...more

Is Your Arbitration Agreement Enforceable?

by Snell & Wilmer on

Health care providers may favor arbitration due to the perception that it is a faster, less expensive alternative to litigation. State and federal policy favors arbitration for the same reasons.  Because of the strong public...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

NC Fiduciaries Have a Duty to Explain Arbitration Agreements in Contracts

by Smith Anderson on

The Supreme Court of North Carolina recently issued an opinion that could have a substantial impact on the enforceability of arbitration agreements when a fiduciary relationship exists, particularly in the context of consumer...more

In 2016 the Texas Supreme Court Continues to Favor Arbitration

by Strasburger & Price, LLP on

In 2016, the Texas Supreme Court issued three important opinions affecting arbitration agreements. The most significant was Hoskins v. Hoskins, 497 S.W.3d 490 (Tex. 2016). The issue in that case was whether a party seeking to...more

North Carolina Federal Court Holds That Arbitration Clause Requiring Panel To Render A Decision Within 30 Days Is Not...

by Carlton Fields on

In July, a federal court in North Carolina held that an arbitration provision which required the arbitration panel to reach a decision within thirty days of their selection was not unconscionable. Arising out of a dispute...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

English-Only Arbitration Agreement Deemed Unenforceable

by Seyfarth Shaw LLP on

Seyfarth Synopsis: An arbitration provision that was provided only in English to a population consisting of one-third Spanish speakers, and that required claimants to bear one-half of arbitration expenses, was unenforceable...more

Smith v. D.R. Horton, Inc.: The End of Arbitration for Residential Developers and Builders in South Carolina?

Mark Twain famously wrote that the reports of his death were exaggerated. Following the South Carolina Supreme Court’s decision in Smith v. D.R. Horton, Inc. last month, you may have heard arbitration is dead for South...more

South Carolina Supreme Court Decision Impacts Enforceability of Arbitration Provisions in New Residential Construction Sales...

by Womble Bond Dickinson on

On July 6, 2016, the South Carolina Supreme Court filed its Opinion No. 27645, captioned Smith v. D.R. Horton, Inc., in which it affirmed the Court of Appeals' refusal to compel arbitration between new home purchasers and the...more

New Jersey Rejects Contractual Shortening of Limitations Period

by Morgan Lewis on

The New Jersey Supreme Court’s decision forbids employers from contractually shortening the two-year limitations period under the state’s Law Against Discrimination. In a decision issued on June 15 that reversed two...more

Employers Cannot Shorten Time Frame to Bring Claims Under N.J. LAD

In a decision issued yesterday in Rodriguez v. Raymours Furniture Company, the Supreme Court of New Jersey ruled that provisions in employment agreements shortening the limitations period for bringing claims under the New...more

Statute of Limitations for New Jersey Law Against Discrimination Claims Cannot Be Shortened By Contract

by Seyfarth Shaw LLP on

Seyfarth Synopsis: The Supreme Court of New Jersey rules that employers may not shorten the statute of limitations for claims of discrimination under the New Jersey Law Against Discrimination via private contract. The...more

Ninth Circuit Reverses Holding That Arbitration Clause In Employment Agreement Is Unconscionable

by Carlton Fields on

In early April, the Ninth Circuit Court of Appeals reviewed a lower court’s holding that an arbitration clause in an employment agreement with JP Morgan was procedurally and substantively unconscionable. Because the...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

Carbajal v. CWPSC Decision Provides Guidance for Drafting Employment Arbitration Agreements

by McManis Faulkner on

On February 26, 2016, the California Court of Appeal, Fourth District, issued its decision in Carbajal v. CWPSC, Inc., invalidating an employment arbitration agreement due to a number of provisions the Court considered...more

California Supreme Court Upholds Arbitration Agreements That Mutually Exclude Applications for Temporary Restraining Orders and...

by Morrison & Foerster LLP on

On Monday, March 28, 2016, the California Supreme Court affirmed the decision of the Second Appellate District holding that an arbitration agreement in an employment contract is not substantively unconscionable simply because...more

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