News & Analysis as of

Federal Arbitration Act Citibank

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
Manatt, Phelps & Phillips, LLP

Could California’s McGill Problem Be Solved on Appeal?

The battle over arbitration in California continues, with two defendants in a recent U.S. Court of Appeals, Ninth Circuit decision appealing the court’s reaffirmation of McGill v. Citibank....more

Sheppard Mullin Richter & Hampton LLP

Choose Your Forum Wisely: Save Your Arbitration Clause From California’s Prohibition on Pre-Dispute Waivers of a Plaintiff’s Right...

The U.S. Supreme Court’s ruling in AT&T Mobility v. Concepcion, 563 U.S. 333 (2011) caused a shockwave in California’s class action bar when it held that the Federal Arbitration Act (“FAA”) preempted California’s former...more

Manatt, Phelps & Phillips, LLP

Ninth Circuit Follows McGill Decision, Cementing Arbitration Risk in California

The U.S. Court of Appeals for the Ninth Circuit has passed on an opportunity to fix the so-called McGill problem in California, affirming the denial of a motion to compel arbitration of a claim for public injunctive relief...more

Manatt, Phelps & Phillips, LLP

California Arbitration Decision Highlights McGill Risk

A recent arbitration decision by a federal district court in San Diego highlights the risk posed by the California Supreme Court’s 2017 decision in McGill v. Citibank. McGill held that California public policy precludes the...more

Weintraub Tobin

Arbitration Agreements Cannot Foreclose A Party’s Right To Seek Public Injunctive Relief Under California’s Consumer Protection...

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The California Supreme Court has struck back in its ongoing battle with the United States Supreme Court as to the enforceability of arbitration agreements in consumer contracts. On April 7, 2017, in McGill v. Citibank, the...more

Pillsbury Winthrop Shaw Pittman LLP

California Supreme Court Punts on FAA Preemption - Court invalidates waiver of public injunctive relief, declines to address...

Last month, the California Supreme Court handed down its unanimous decision in McGill v. Citibank N.A., holding that an arbitration provision that effectively waives a consumer’s statutory right to seek public injunctive...more

Kilpatrick

Back To The Class-Action Waiver Drawing Board: California Supreme Court Holds Arbitration Agreement Cannot Extinguish A Claimant’s...

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Takeaway: Businesses operating in California now face another hurdle in drafting enforceable arbitration agreements. The California Supreme Court has invalidated a provision in an aggressive class action waiver purporting to...more

Robins Kaplan LLP

California’s Supreme Court Holds Arbitration Clauses Cannot Waive Public Injunctive Relief

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In what will likely result in a certiorari petition, the Supreme Court of California unanimously ruled that consumers cannot contractually waive their right to pursue public injunctive relief through a pre-dispute arbitration...more

Alston & Bird

California Supreme Court Creates More Confusion

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The California Supreme Court recently created yet another exception to the enforceability of arbitration agreements with class action waivers, and in doing so generated more uncertainty about what companies should (and should...more

Best Best & Krieger LLP

Right to Seek Injunctive Relief Cannot be Waived by Arbitration Provision - Arbitration Agreement does not Provide Shield from...

An arbitration agreement preventing individuals from seeking injunctive relief was void as contrary to California public policy and could not be enforced under California law, the California Supreme Court recently determined...more

Troutman Pepper

California Supreme Court Finds Arbitration Agreement Waiver of 'Public Right' Unenforceable

Troutman Pepper on

On April 6, the California Supreme Court issued a unanimous opinion in McGill v. Citibank, finding that a pre-dispute arbitration agreement was unenforceable to the extent it required the plaintiff to waive her right to seek...more

Carlton Fields

California Supreme Court Finds Waiver Of Statutory Remedy In Arbitration Agreement Contrary To Public Policy

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“Agreements to arbitrate claims for public injunctive relief under [California’s Consumers Legal Remedy Act or Unfair Competition Law], or the false advertising law are not enforceable in California.” The California Supreme...more

Foley & Lardner LLP

Private Arbitration Agreements which Prohibit Public Injunctive Relief Violate Public Policy and are Unenforceable Under...

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In an April 5, 2017 unanimous opinion, the California Supreme Court (the “Court”) held that private arbitration agreements which prohibit public injunctive relief in any forum are contrary to California public policy and...more

Eversheds Sutherland (US) LLP

Forcing the Issue? California Supreme Court Opens Door for Challenges to Mandatory Arbitration Clauses

Consistent with the historical reluctance of California courts to enforce arbitration provisions in consumer contracts, on April 6, 2017, the California Supreme Court ruled that an arbitration provision that waived an...more

Fenwick & West LLP

Litigation Alert: CA Supreme Court Holds Arbitration Provisions Waiving Right to Seek Public Injunctive Relief "In Any Forum" Are...

Fenwick & West LLP on

In a closely-watched case, the California Supreme Court recently held in McGill v. Citibank, N.A. that arbitration clauses that foreclose a plaintiff’s right to pursue public injunctive relief in any forum are invalid and...more

Seyfarth Shaw LLP

California Supreme Court Invalidates Contractual Waivers Of Public Injunctive Relief

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Seyfarth Synopsis: No California contractual provision, including one in an arbitration agreement, can waive the statutory right to seek injunctive relief to protect the general public. McGill v. Citibank, N.A. (April 6,...more

Sheppard Mullin Richter & Hampton LLP

In California, The Statutory Right To Seek Public Injunctive Relief Is Unwaivable

On April 6, 2017, in the matter Sharon McGill v. Citibank, N.A., the California Supreme Court ruled unanimously that an arbitration agreement that waives a statutory right to seek public injunctive relief in any forum, is...more

Akin Gump Strauss Hauer & Feld LLP

McGill v. Citibank and Arbitration Agreements

On Thursday, April 7, 2017, in McGill v. Citibank, the California Supreme Court held that a pre-dispute arbitration agreement that waives the right to seek public injunctive relief is contrary to public policy and thus...more

Carlton Fields

California Court Of Appeal Sides With Federal Arbitration Act Over State Law Unconscionability Rule

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The California Court of Appeals recently held that the Federal Arbitration Act (“FAA”) preempts California’s Broughton-Cruz rule, which states that arbitration agreements for injunctive relief under California’s unfair...more

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