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Unconscionable Contracts Mandatory Arbitration Clauses

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

California Appeals Court Finds Employer’s Arbitration Agreement With Cost-Sharing and Out-of-State Law Provisions Unconscionable

In a recent ruling, a California appeals court found an arbitration agreement with an eyewear store employee that was presented on a take-it-or-leave-it basis required an arbitrator to apply the laws of another state,...more

McGlinchey Stafford

Am I Bound by My Client’s Settlement Agreement? - McGlinchey Commercial Law Bulletin - March 8, 2024

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In this appeal, the Eleventh Appellate District affirmed the trial court’s decision to grant the defendant summary judgment, finding, among other things, that equitable estoppel was a defense, not affirmative cause of action....more

Proskauer - Blockchain and the Law

Cryptocurrency Companies: Enforceable Terms of Use Matter

It is not unusual for users of a platform or of software to challenge the enforceability of a company’s terms of use if they take issue with the company’s product or service and decide to bring suit. As most terms of use...more

Stikeman Elliott LLP

Online Meal Service’s Arbitration Clause Doesn’t Deliver the Goods: Manitoba Court Rules in Favour of Courier Who Agreed To It...

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The Manitoba Court of King’s Bench recently rejected a motion by a large online meal delivery service to stay a class proceeding in favour of arbitration in accordance with the terms of a new agreement with its couriers. The...more

Seyfarth Shaw LLP

Mandatory Arbitration Provision Struck Down by the Washington Supreme Court

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Seyfarth Synopsis: The Washington Supreme Court refused to enforce a mandatory arbitration agreement that was contained within an Employee Handbook. ...more

Carlton Fields

Court Compels Arbitration With Respect to Insurers, Not Brokers

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The U.S. District Court for the Southern District of Texas recently compelled arbitration against insurers but not brokers related to a commercial insurance dispute....more

Skadden, Arps, Slate, Meagher & Flom LLP

Court of Chancery Dismisses Consent and Unconscionability Claims Challenging Contract Between Parent and Wholly Owned Subsidiary

On March 30, 2020, in The Chemours Company v. DowDuPont Inc., et al., C.A. No. 2019-0351-SG (Del. Ch. Mar. 30, 2020), the Delaware Court of Chancery issued an important decision reaffirming bedrock principles of Delaware...more

Carlton Fields

Eighth Circuit Rejects Claim That Arbitration Clause in Retainer Was Unconscionable

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The Eight Circuit has rejected a plaintiff’s claim that an arbitration clause in a retainer agreement she signed with a law firm after receiving a call from a purported agent of the firm informing her of a purported...more

Payne & Fears

Key California Employment Law Cases: August 2019

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OTO, L.L.C. v. Kho, 8 Cal. 5th 111, 251 Cal. Rptr. 3d 714 (2019) - Summary:  Mandatory arbitration agreement may be unenforceable against employee wage claims if agreement requires employee to forego Labor Commissioner...more

Fisher Phillips

Supreme Court’s Decision Not To Review California’s Arbitration Framework Means We Have A Roadmap For Compliance

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The U.S. Supreme Court just did something that was more than just a bit out of character—it rejected the opportunity to find that California had once again overstepped its bounds by creating judicial rules disfavoring...more

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

Payne & Fears

California Supreme Court Casts Doubt on Arbitration Agreements that Require Civil Litigation Procedures for Wage Claims

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On August 29, 2019, the California Supreme Court held in OTO, L.L.C. v. Kho, S244630, that a mandatory arbitration agreement may be unenforceable against employee wage claims if it requires the employee to forego the “Berman”...more

Carlton Fields

Court Compels Arbitration Based on Text Message Agreement

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A district court has granted a motion to compel arbitration based on an arbitration clause in an agreement sent via text message and agreed to via a reply text. ...more

Carlton Fields

Alabama District Court Enforces Arbitration Clause Related to Disability Policy Over Unconscionability Claim

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The U.S. District Court for the Northern District of Alabama has compelled arbitration despite a former employee’s claim that the arbitration clause in the policy at issue was unconscionable under the circumstances related to...more

Hogan Lovells

California Appellate Courts Diverge on Arbitration Agreements

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Two California Courts of Appeal came to two different conclusions on motions to compel arbitration on the same day last week (April 10), again demonstrating the care that must be taken in drafting and presenting arbitration...more

Payne & Fears

Key California Employment Law Cases: November 2018

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This month’s key employment law cases address nonsolicitation provisions and arbitration agreements. AMN Healthcare, Inc. v. Aya Healthcare Servs., Inc., 28 Cal. App. 5th 923, 239 Cal. Rptr. 3d 577 (2018) Summary:...more

Carlton Fields

Case Alleging That Barnes & Noble Wrongfully Shared Customer Information With Facebook Ordered To Arbitration

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Plaintiff filed a class action against Barnes & Noble in the Southern District of New York, alleging that it violated her privacy by sharing information about her purchases with Facebook. Barnes & Noble moved to compel...more

Carlton Fields

Ninth Circuit Affirms Application Of Arbitration Clause Found In Amazon’s Conditions Of Use

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Applying Washington law, the Ninth Circuit Court of Appeals affirmed a California federal court’s ruling that Amazon’s Conditions of Use (COU) created a valid contract between Amazon and its customers, and there was no...more

Proskauer - New Media & Technology

Ninth Circuit Rejects Claim That Amazon’s Terms and Conditions Are an Unconscionable Contract

In an unpublished opinion, the Ninth Circuit affirmed a lower court’s ruling that had sent a putative class action against Amazon over its pricing practices to arbitration, as per Amazon’s terms of service. (Wiseley v....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

Carlton Fields

New Jersey Court Compels Arbitration, Declines To Appoint Substitute Arbitrator Despite “Exorbitant” Administrative Fee

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Terra Finance LLC brought an action to compel arbitration. Defendant Acrow Corporation moved to dismiss the action under Fed. R. Civ. P. 12(b)(6), arguing that the arbitration clause was unconscionable, and therefore...more

Fox Rothschild LLP

New Arbitration Protections for CA Employees

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California’s legislature has passed two new statutes that increase the protections for employees arbitrating workplace disputes. SB 1007, which passed on September 1, 2016, gives any party to arbitration proceedings “the...more

Seyfarth Shaw LLP

Court OKs Arbitration Agreement Permitting Injunctive Relief

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Seyfarth Synopsis in a Second: A clause in an employment arbitration agreement that authorizes preliminary injunctive relief in court does not make the agreement unenforceable. As a general proposition, arbitration...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

Parker Poe Adams & Bernstein LLP

Supreme Court Agrees to Review California Rule Invalidating Contractor Arbitration Agreements

On October 1, the U.S. Supreme Court agreed to hear the appeal of a company whose mandatory arbitration agreements with its contractors were deemed invalid by California state courts. Once again, the Court will determine...more

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