News & Analysis as of

Federal Arbitration Act CLRA

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. 
Kilpatrick

Ninth Circuit holds public injunctive relief may be pursued by an individual in arbitration, thereby enforcing arbitration...

Kilpatrick on

Takeaway: One of the most effective tools for a business to reduce its exposure to class action litigation is to include compulsory arbitration provisions and class action waivers in customer-facing contracts. But there are...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

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

Foley & Lardner LLP

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

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

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

Alston & Bird

California Supreme Court Creates More Confusion

Alston & Bird on

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

McGuireWoods LLP

Arbitration Clause Cannot Bar Claims for Public Injunctive Relief

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On April 6, the California Supreme Court issued the latest in an ongoing series of cases resisting preemption of California state law under the Federal Arbitration Act (FAA) and again testing the limits of the U.S. Supreme...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

Carlton Fields on

“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

Fenwick & West LLP

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

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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

Sheppard Mullin Richter & Hampton LLP

Dancing On Their Own: The California Supreme Court’s Decision in McGill v. Citibank, N.A. that Class Action Waivers Do Not Apply...

On April 6, 2017, the California Supreme Court struck another blow in its contentious battle with the United States Supreme Court on the enforceability of consumer arbitration clauses subject to the Federal Arbitration Act...more

Seyfarth Shaw LLP

Supreme Court Airs Re-Run on Class Waivers in DirecTV But Disappoints Again by Declining PAGA Waiver Programming

Seyfarth Shaw LLP on

As discussed by our Consumer Class Defense Blog, this week’s Supreme Court decision in DirecTV, Inc. v. Imburgia reversed a California Court of Appeal that had applied the California Consumer Legal Remedies Act’s prohibition...more

Dorsey & Whitney LLP

It Is Now Easier To Draft Class Action Waivers and Arbitration Agreements

Dorsey & Whitney LLP on

Last week, the California Supreme Court provided additional guidance as to how to draft an enforceable arbitration agreement and how Courts should analyze whether mandatory arbitration provisions can be held unconscionable...more

Ballard Spahr LLP

California Supreme Court Upholds Arbitration Clause, but Unconscionability Remains a Defense to Arbitration

Ballard Spahr LLP on

The California Supreme Court issued its long-awaited decision in Sanchez v. Valencia Holding Company, LLC, on August 3, 2015, reversing a finding by the Court of Appeal that an arbitration provision was unconscionable...more

Sheppard Mullin Richter & Hampton LLP

The California Supreme Court Holds Consumer Class Action Waivers In Arbitration Provisions Are Enforceable Under Federal Law

On August 3, 2015, the California Supreme Court issued its long-awaited arbitration decision in Sanchez v. Valencia Holding Co., LLC, No. B228027. The Court held that the arbitration provision found in a standard form auto...more

BakerHostetler

CA Supreme Court Upholds Class Action Waivers in Long-awaited Sanchez Decision

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On August 3, 2015, the California Supreme Court issued its long-awaited decision in Sanchez. v. Valencia Holding Company, LLC (2015) — Cal.4th — (Sanchez). The court provided much-needed clarity for consumers and auto finance...more

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