News & Analysis as of

Contract Terms Arbitration Class Action

Warner Norcross + Judd

Spring Cleaning Your Dispute Resolution Terms and Conditions: Tips for Avoiding Mass Arbitrations

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Mandatory arbitration provisions, combined with class action waivers, are a common element of consumer-facing terms and conditions. Unfortunately, in recent years, plaintiffs’ counsel have moved from fighting these provisions...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

Buchalter

Want to Ensure Arbitration in an E-Commerce World? Time To Refresh Your Website’s Terms of Service

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Recent court decisions have raised the bar for enforceable arbitration provisions in website Terms of Service (ToS) agreements. E-commerce businesses must ensure their website architecture and ToS design meet current legal...more

Orrick, Herrington & Sutcliffe LLP

The Revival of Badie Arbitration Suits in Consumer Finance

Bilateral arbitration is under increasing attack. While businesses evaluate whether and how to update their arbitration clauses in light of the U.S. Court of Appeals for the Ninth Circuit's October decision in Heckman v. Live...more

Troutman Pepper Locke

Fourth Circuit Finds Unilateral Change-in-Terms Provision Rendered the Arbitration Agreement Illusory Under Maryland Law

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On March 11, the U.S. Court of Appeals for the Fourth Circuit affirmed the district court’s denial of a motion to compel arbitration in two class-action lawsuits. The decision potentially has far-reaching implications for the...more

Benesch

Navigating the Fine Print: Ninth Circuit Tightens Scrutiny on Digital Arbitration Agreements

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A recent Ninth Circuit decision, Chabolla v. ClassPass, Inc., underscores critical considerations for retailers with online Terms of Service / Use agreements, particularly regarding arbitration provisions and related consumer...more

DLA Piper

Ninth Circuit Issues First Published Opinion Addressing Mass Arbitration

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The US Court of Appeals for the Ninth Circuit issued its first published opinion addressing mass arbitration on February 28, 2025, following the court’s decision in Heckman v. Live Nation Entertainment, et al., 120 F.4th 670...more

Sheppard Mullin Richter & Hampton LLP

Plaintiffs, Not Defendants, Must Initiate Arbitration

Arzate v. Ace American Insurance Company, — Cal. Rptr. 3d — (2025) began as a familiar case: plaintiffs signed arbitration agreements (“Agreement”) with their employer that contained a class action waiver. But when a dispute...more

Troutman Pepper Locke

Ninth Circuit Rejects Plaintiff’s Attempt to Contest Consolidation of Arbitration Claims

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On February 28, the U.S. Court of Appeals for the Ninth Circuit affirmed a district court’s denial of a petition to compel individual arbitration against Starz Entertainment, LLC. The court held that the plaintiff, who...more

Blake, Cassels & Graydon LLP

B.C. Proposes Consumer Protection Reforms, Aims to Restrict Certain Contract Terms

On February 25, 2025, the British Columbia government introduced Bill 4, the Business Practices and Consumer Protection Amendment Act, 2025 (Bill) for the stated purpose of protecting people from “unfair contract terms” and...more

Holland & Knight LLP

Shielding Against the Mass Arbitration Surge: Strategies to Mitigate Risk

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Mass arbitration is posing significant challenges for businesses, as it creates a new battleground in dispute resolution with the potential to overwhelm companies with a flood of simultaneous claims. Consumer-facing companies...more

Ballard Spahr LLP

Will the CFPB’s proposed rule on contract terms and conditions affect arbitration clauses?

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Earlier this week, the CFPB issued a proposed rule. Among other things, the proposed rule would “forbid covered persons from including in their consumer contracts any terms or conditions that purport to waive substantive...more

Morris, Manning & Martin, LLP

Mass Arbitration: Managing the Risk and Complexities

For over three decades, arbitration has offered an efficient and cost-effective mechanism for resolving consumer disputes. Companies across a variety of industries, including telecommunications, retail and the gig economy,...more

Seyfarth Shaw LLP

Arbitration Agreement Enforceable By Non-Signatory Alleged Joint-Employers

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Employees who sign an arbitration agreement with one company cannot avoid arbitration with related defendant-companies by arguing they were not parties to the agreement. The California Court of Appeal held that claims against...more

Lewitt Hackman

Beyond the Contract: Non-Signatories to an Arbitration Agreement Can Compel Arbitration

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Departing from the ruling in Soltero v. Precise Distribution earlier this year, the California Court of Appeal in the Second District in Gonzalez v. Nowhere Beverly Hills LLC, created a split of authority regarding an alleged...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

Fenwick & West LLP

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

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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

Womble Bond Dickinson

Supreme Court Clarifies Arbitration Clauses: Key Takeaways for Companies

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Recent decisions by the U.S. Supreme Court in Smith v. Spizzirri, 601 U.S. 472 (2024) and Coinbase, Inc. v. Suski, 144 S. Ct. 1186 (2024) provide important guidance for companies utilizing arbitration clauses in their...more

Carlton Fields

Conflict of Contracts: SCOTUS Backs Courts Rather Than Arbitrators to Resolve

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With its recent decision in Coinbase Inc. v. Suski, the U.S. Supreme Court held that when parties have agreed to two separate contracts, one sending arbitrability disputes to arbitration and the other sending arbitrability...more

Ervin Cohen & Jessup LLP

Previous Arbitration Agreements Are Potentially Unenforceable Against Re-Hired Employees

Despite its best efforts, the California Legislature has been unable to substantially curtail the popularity of employment arbitrations in California.  The hostility to employment arbitration remains evident, however, among...more

Carlton Fields

Pennsylvania’s “One-Document Rule” Invalidates Carvana’s Arbitration Agreement

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Dana Jennings and Joseph Furlong each bought a car from Carvana, a nationwide online used car dealer. On the day of their purchases, each signed three separate documents: a “retail purchasing agreement,” a “retail installment...more

Kohrman Jackson & Krantz LLP

Mass Arbitration as a Tennis Match: No Love Here

For the past few years, following the machinations of mass arbitrations has been like watching a tennis match. First one side hits a volley, then another returns, and on-and-on with the opposing sides continually stuck in...more

Holland & Knight LLP

Mandatory Arbitration and Class Action Waivers by Amendment: Easier Said Than Done

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In response in part to the dozens of cases filed throughout the country related to assessment of insufficient funds (NSF) and overdraft (OD) fees, many banks and credit unions have sought to add arbitration and class action...more

Lathrop GPM

California Federal Court Declares Arbitration Clause Unenforceable

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In Munoz, v. Earthgrains Distribution, LLC, 2023 WL 5986129 (S.D. Cal. Sept. 13, 2023), the plaintiffs, members of a class of independent distributors of baked goods for Earthgrains and other bakeries, alleged that they were...more

Benesch

Don’t Hide Your Hyperlinks: (Successfully) Using Arbitration Agreements to Avoid Class Litigation

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In the ever-evolving landscape of TCPA litigation, the recent case of Hooper v. Jerry Insurance Agency, LLC, No. 22-cv-04232, 2023 U.S. Dist. LEXIS 105247 (N.D. Cal. June 1, 2023) provides a noteworthy exploration of contract...more

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