News & Analysis as of

Unconscionable Contracts Class Action Arbitration Waivers

Ballard Spahr LLP

Small business borrowers bring lawsuit alleging lender engaged in “rent-a-charter” scheme to make usurious loans

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A group of small businesses and their individual owners have filed a putative class action lawsuit in a New York federal district court against online lender Kabbage, Inc. that alleges Kabbage engaged in a “rent-a-charter”...more

FordHarrison

Lessons in Drafting and Implementing an Enforceable Mandatory Arbitration Agreement

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Recently, the California Supreme Court invalidated a mandatory arbitration agreement in OTO, LLC v. Kho (August 29, 2019) finding the agreement was both procedurally and substantively unconscionable. The case involved...more

Payne & Fears

Ninth Circuit Reverses Grant of Class Certification and Denial of Motions to Compel Arbitration in Several Uber Class Actions

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In a major victory for ride-share company Uber Technologies, Inc. ("Uber"), the United States Court of Appeals for the Ninth Circuit issued its much anticipated opinion in O'Connor v. Uber Technologies, Inc., Case No....more

Carlton Fields

Ninth Circuit: Unconscionability Arguments Directed Solely At Class Action Waiver Provisions In Arbitration Agreements Are...

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Utilizing a “sweeping reading of Concepcion,” as characterized by the concurring opinion, the Ninth Circuit has ruled that arguments that “a class action waiver, by itself, is unconscionable under state law or that an...more

Cohen & Gresser LLP

We Have an Arbitration Agreement. Now What?

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The U.S. Supreme Court, in recent years, has provided companies with a powerful tool to avoid class action lawsuits: arbitration. In a series of decisions, the Supreme Court has held that class action waivers in otherwise...more

Foley & Lardner LLP

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

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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

Proskauer - Minding Your Business

Recent Decisions Clarify (Un)Enforceability of Class Action Waivers in Employment Agreements

Companies looking to waive class action rights of employees may instead be waving goodbye to provisions in their employment contracts. Two recent decisions in California—one administrative and one in the 9th Circuit—recently...more

Pierce Atwood LLP

Consumer Financial Protection Bureau Publishes Proposed Rule Precluding Class Action Waivers in Arbitration Clauses

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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

Manatt, Phelps & Phillips, LLP

Employment Law - March 2016 #3

New EEOC Suits: Discrimination Based on Sexual Orientation Violates Title VII - Why it matters - The Equal Employment Opportunity Commission (EEOC) filed a pair of landmark lawsuits alleging sex discrimination based...more

Manatt, Phelps & Phillips, LLP

Advertising Law - January 2016 #2

Uber Drives Settlement With NY AG Over Data Breach, Privacy Violations - In a pair of settlements, ride-sharing company Uber agreed to pay a $20,000 fine for failing to report a data breach in a timely manner as...more

Carlton Fields

Uber’s Attempt To Compel Class Arbitration Rejected Due To Unconscionability Of Arbitration Agreement

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The court held that a number of the provisions in the subject arbitration agreements were unconscionable, including a delegation clause providing that disputes involving the arbitration agreement be decided in arbitration....more

Proskauer - Advertising Law

When it Comes to Arbitration Agreement Class Action Waivers, Concepcion is Still the Law, Even in California.

In 2014, we blogged about a California state appellate court decision invalidating the arbitration clause in DIRECTV’s consumer contracts. We found that California decision to be noteworthy because it seemed to fly in the...more

Carlton Fields

U.S. Supreme Court Applies Concepcion In Reversing Order Finding Class Arbitration Waiver Unconscionable Under California Law

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On December 14, 2015, the U.S. Supreme Court applied its landmark Concepcion decision and reversed a California appellate court’s ruling that an arbitration clause containing a class arbitration waiver was unenforceable under...more

Franczek P.C.

DIRECTV v. Imburgia

Franczek P.C. on

Last week, in DIRECTV v. Imburgia, the United States Supreme Court issued a decision once again re-affirming the strong federal policy in favor of arbitration. At issue in this case was a service agreement entered into...more

Sheppard Mullin Richter & Hampton LLP

Arbitration Wars: Supreme Court Continues To Affirm The Supremacy of the FAA

The United States Supreme Court recently reversed a decision by the California Court of Appeal wherein the state court refused to enforce a class action waiver in an arbitration agreement. The Supreme Court enforced the class...more

Cozen O'Connor

What the United States Supreme Court’s Decision in Direct TV v. Imburgia Means For Your Consumer Agreements and Arbitration...

Cozen O'Connor on

Last week, the United States Supreme Court issued its opinion in Direct TV v. Imburgia, 577 U.S. ___ (2015). This decision is important for manufacturers of consumer products because it fortifies the ability to incorporate...more

Genova Burns LLC

Supreme Court Reiterates The FAA’s Preemptive Authority

Genova Burns LLC on

On December 14, 2015, the United States Supreme Court in DIRECTV, Inc. v. Imburgia, 577 U.S. ___, No. 14-462, slip op. at 1 (Dec. 14, 2015), doubled down on its previous holdings that the Federal Arbitration Act (“FAA”)...more

Littler

High Court Again Finds a California Court Failed to Place Arbitration Agreements on Equal Footing With Other Contracts

Littler on

On December 14, 2015, in DirecTV, Inc. v. Imburgia, the U.S. Supreme Court reversed a California State Court of Appeal decision that had invalidated an arbitration provision based on language from the agreement rendering the...more

Stoel Rives LLP

United States Supreme Court Once Again Rejects California’s Attempt To Void Class Arbitration Waivers

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In DIRECTV, Inc. v. Imburgia, a decision released this week, the United States Supreme Court rejected the California Court of Appeal’s interpretation of a binding arbitration provision that would have rendered unenforceable a...more

Seyfarth Shaw LLP

Supreme Court to California Courts: You Can’t Ignore Us or the FAA

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On Monday, the U.S. Supreme Court issued its highly-anticipated opinion in DirecTV, Inc. v. Imburgia et al., 577 U.S. ___ (2015), which reaffirmed its ruling in AT&T Mobility LLC v. Concepcion, 56 U.S. 333 (2011), dealing...more

BakerHostetler

Supreme Court Disconnects Plaintiffs’ Attempt to Avoid Class Arbitration Waiver

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In a 6-3 decision yesterday, the Supreme Court in DirecTV, Inc. v. Imburgia, 577 U.S. ___, S. Ct. (2015) reversed a decision of the California Court of Appeals that refused to enforce a class action arbitration waiver on...more

Blank Rome LLP

U.S. Supreme Court Rules That Federal Arbitration Act Pre-Empts CA Law Against Class Action Waivers

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Action Item: The United States Supreme Court continues to find that federal law strongly favors arbitration clauses. The Supreme Court’s decision in DIRECTV should provide some reassurance to companies that arbitration...more

Carlton Fields

Supreme Court Confirms Enforceability of Class Action Waivers

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For the second time in four years, the U.S. Supreme Court has overruled a California decision that refused to enforce an arbitration agreement with a class action waiver, holding that the Federal Arbitration Act (FAA) trumps...more

Foley & Lardner LLP

The Supreme Court Preview, Part II: Tuning Up Arbitration Clauses

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This is the second post in our series “The Supreme Court Preview,” - California state and federal courts have a rocky history with the U.S. Supreme Court, as the highest court in the land has repeatedly reversed the...more

Seyfarth Shaw LLP

Don’t Throw the Class Waiver Baby Out with the Arbitration Agreement Bathwater

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Sound advice that the world has lived with since 1512…until recently flushed by the Ninth Circuit. Not so quick to discard 500 years of wisdom, however, the Supreme Court has agreed to consider whether this idiom will rest in...more

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