News & Analysis as of

Class Action Arbitration Waivers Federal Arbitration Act

Axinn, Veltrop & Harkrider LLP

Be Careful What You Wish For: Class Action Waivers and Arbitration Agreements Can Create Headaches if Not Carefully Drafted

Companies often seek to avoid the expense and outsized potential liability of class actions by including class action waivers and arbitration clauses in contracts with consumers, employees, and corporate counterparties alike....more

Buchalter

Washington Ruling Highlights the Need for Careful Review of Arbitration Agreements and Class Action Waivers in Wage-and-Hour...

Buchalter on

In an unpublished opinion, the Washington Court of Appeals recently affirmed a trial court’s refusal to compel arbitration in a proposed class action against Geodis Logistics, LLC, holding that the employees’ arbitration...more

Paul Hastings LLP

SEC Issues Policy Statement on Mandatory Arbitration Provisions in Governing Documents

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On Sept. 17, the Securities and Exchange Commission (SEC) issued a Policy Statement stating that the SEC would henceforth declare effective registration statements of companies that provide for mandatory arbitration of...more

Ballard Spahr LLP

New SEC Policy Statement Allows Companies Seeking to Register Securities to Include a Mandatory Arbitration Provision in Their...

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Citing a host of recent U.S. Supreme Court rulings interpreting the Federal Arbitration Act (FAA), the Securities and Exchange Commission (SEC) has “determined that the presence of an issuer-investor mandatory arbitration...more

Robinson Bradshaw

Say the Magic Word: Fourth Circuit Imposes High Standard for Showing that Federal Statute Precludes Enforcement of Agreement to...

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A recent Fourth Circuit decision extends the trend of cases refusing to use federal statutes to invalidate arbitration agreements waiving the right to bring class claims in federal court. The statute at issue in Espin v....more

Ballard Spahr LLP

New Jersey Supreme Court Enforces Stand-Alone Class Action Waiver

Ballard Spahr LLP on

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

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

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

Carlton Fields

Second Circuit Rejects Enforcement of Class Waiver and Arbitration Agreement Under FAA, Finds That Provisions Impermissibly...

Carlton Fields on

The plaintiff sued the trustee of his retirement plan, his former employer, and others for breach of fiduciary duties in connection with the plan’s purchase of shares of the employer’s parent company for more than fair market...more

Mintz

Arbitration Clauses and Class Action Waivers in Residential Leases: Are They Enforceable?

Mintz on

Landlords and property managers are increasingly adding arbitration clauses with class action waivers to their residential leases. These lease provisions can protect landlords from the significant time and costs associated...more

Mayer Brown

Consumer Arbitration in the US

Mayer Brown on

Join us for the latest episode of Financial Services Focus as Andy Demko and Archis Parasharami discuss how consumer arbitration became popular among U.S. businesses in response to class actions from the late 90s onward. The...more

Seyfarth Shaw LLP

Second Circuit Holds that Plan Arbitration Provisions that Force Plaintiff to Surrender Statutory Right To Plan-Wide Relief Are...

Seyfarth Shaw LLP on

The Second Circuit recently ruled that an ERISA plan’s arbitration provision was not enforceable because the provision barred plan-wide relief. Cedeno v. Sasson, 2024 WL 1895053 (2d Cir. May 1, 2024). The Court decision...more

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

Recent Court Rulings on FAA’s Transportation Worker Exemption May Require Employers to Update Their Arbitration Agreements

The U.S. Department of Labor estimates 56 percent of all nonunion private-sector employees are subject to mandatory arbitration agreements. Many employers use such agreements—and the class action waivers contained therein—to...more

Foley & Lardner LLP

Ongoing Battles Remind Employers to Carefully Consider Their Approach to Arbitration Agreements

Foley & Lardner LLP on

Hop into the time machine with me so I can take a quick victory lap before I revert to being the ever-cautious counselor. Way back in October 2019, I not-so-subtly indicated my belief that a California statute banning...more

Holland & Knight LLP

The Law on ERISA Plan Arbitration Provisions Remains Unsettled

Holland & Knight LLP on

As previously discussed, courts continue to disagree over the enforceability of mandatory arbitration provisions containing class action waivers set forth in benefit plans governed by the Employee Retirement Income Security...more

Ballard Spahr LLP

Rhode Island federal court nixes stand-alone class action waiver

Ballard Spahr LLP on

A Rhode Island federal district court recently refused to enforce a stand-alone class action waiver in the consumer plaintiff’s automobile lease agreement on the ground that it violates state public policy. The court in...more

Kilpatrick

Supreme Court declines to clarify enforceability of mandatory arbitration provisions for fiduciary breach claims

Kilpatrick on

Are mandatory arbitration provisions with class action waivers a solution to the onslaught of class action litigation against 401(k) plans in recent years? Some courts have enforced mandatory arbitration provisions in ERISA...more

Ballard Spahr LLP

Consumer Advocates Petition CFPB to Undertake Rulemaking to Prohibit “Pre-dispute” Consumer Arbitration Clauses

Ballard Spahr LLP on

Earlier last week, a group of consumer advocate organizations filed a Petition for Rulemaking with the CFPB that would prohibit the use of pre-dispute arbitration clauses in consumer contracts in favor of arbitration clauses...more

Ballard Spahr LLP

California federal court denies arbitration motion in Ticketmaster case

Ballard Spahr LLP on

We previously wrote about a Ninth Circuit appeal dealing with the use of bellwether procedures to resolve mass arbitration claims brought by thousands of customers against Verizon Wireless. That appeal remains pending and is...more

Greenberg Glusker LLP

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

Greenberg Glusker LLP on

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

BakerHostetler

A Recent DoorDash Opinion Addresses Several Pivotal Arbitration Issues

BakerHostetler on

Two DoorDash delivery drivers filed a class action against the company and two of its employees alleging violations of federal and state wage and hour laws. After removal of the case to the Southern District of New York, the...more

Fisher Phillips

Does Your Dealership Arbitrate? Recent Developments in Workplace Arbitration Agreements

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Employers – and, in particular, car dealerships – have relied on binding arbitration agreements to resolve employment disputes for decades. Arbitration offers a confidential setting in which businesses can efficiently...more

Butler Snow LLP

The Supreme Court Again Affirms Party Autonomy, in Arbitration Agreements, Holds FAA Preempts State Law Rules Preventing Division...

Butler Snow LLP on

In Viking River Cruises, Inc. v. Moriana, 213 L. Ed. 2d 179, 142 S. Ct. 1906 (2022), reh’g denied, No. 20-1573, 2022 WL 3580311 (U.S. Aug. 22, 2022), the Supreme Court held that the Federal Arbitration Act, 9 U.S.C. § 1 et...more

Miller Nash LLP

Washington Court of Appeals Voids Class Action Waivers in Some Wage and Hour Claims

Miller Nash LLP on

In a recently published decision, the Washington Court of Appeals declared class action waivers in certain employment agreements unenforceable. In Oakley v. Domino’s Pizza, LLC, plaintiff Oakley brought claims under the...more

Fisher Phillips

Massachusetts High Court Says Grubhub Delivery Drivers Must Arbitrate Claims

Fisher Phillips on

The Massachusetts Supreme Judicial Court (SJC) held yesterday that local Grubhub delivery drivers are not exempt from the Federal Arbitration Act (FAA), and those workers can be compelled to individually arbitrate their...more

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