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Unenforceable Contract Terms Federal Arbitration Act Arbitration Agreements

Katten Muchin Rosenman LLP

The Latest Attack on Consumer Arbitration Agreements

The war against arbitration agreements continues apace. The latest volley comes from the U.S. Court of Appeals for the Fourth Circuit, Johnson v. Continental Finance Company, LLC, No. 23-2047 (4th Cir. Mar. 11, 2025). In...more

Ballard Spahr LLP

New Jersey Supreme Court Enforces Stand-Alone Class Action Waiver

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Earlier this year, the New Jersey Supreme Court held in Pace v. Hamilton Cove that class action waivers in consumer contracts that do not contain an arbitration clause (i.e., a stand-alone class action waiver) are not per se...more

Goodwin

Ninth Circuit Strikes Mass Arbitration Agreement as Unenforceable under California Law

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On October 28, 2024, the Ninth Circuit struck a mass arbitration agreement as unconscionable and unenforceable under California law in Heckman v. Live Nation Ent., Inc., No. 23-55770.  The three-judge panel affirmed the...more

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

California Appellate Decision Raises New Considerations for Arbitration Agreements

A California appellate court recently denied a motion to compel arbitration, finding the agreement unconscionable in part because it (1) applied to all claims rather than just those arising from employment, (2) was unlimited...more

Seyfarth Shaw LLP

Second Circuit Holds that Plan Arbitration Provisions that Force Plaintiff to Surrender Statutory Right To Plan-Wide Relief Are...

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The Second Circuit recently ruled that an ERISA plan’s arbitration provision was not enforceable because the provision barred plan-wide relief. Cedeno v. Sasson, 2024 WL 1895053 (2d Cir. May 1, 2024). The Court decision...more

Carlton Fields

Nevada Supreme Court Reverses Order Denying Motion to Compel Arbitration

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The Nevada Supreme Court recently reversed the denial of a motion to compel arbitration, explaining that the plaintiff’s arguments that the contract at issue was illegal were not a valid basis to deny arbitration because...more

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

Ninth Circuit Blocks California’s Ban on Mandatory Arbitration in Employment

On February 15, 2023, the Ninth Circuit Court of Appeals blocked a 2020 California law that attempted to prohibit employers from requiring employees and job applicants to agree to arbitration as a condition of employment. The...more

BakerHostetler

A Recent DoorDash Opinion Addresses Several Pivotal Arbitration Issues

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Two DoorDash delivery drivers filed a class action against the company and two of its employees alleging violations of federal and state wage and hour laws. After removal of the case to the Southern District of New York, the...more

Seyfarth Shaw LLP

New Jersey Arbitration Agreements Need Not Designate a Specific Arbitrator or “Arbitral Forum” to be Enforceable

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Seyfarth Synopsis: In Flanzman v. Jenny Craig, Inc., the New Jersey Supreme Court reversed the Appellate Division and held that an arbitration agreement may bind the parties even if the agreement does not designate a specific...more

Flaster Greenberg PC

Trends in Arbitration Agreements

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The New Jersey Supreme Court in late November 2019 heard oral argument in Flanzman v. Jenny Craig, Inc., 456 N.J. Super. 613 (App. Div. 2018), cert. granted, 237 N.J. 310 (2019), in which the Appellate Division boldly refused...more

Littler

EEOC Rescinds Policy Statement Disfavoring Arbitration Agreements

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As part of its efforts to rescind outdated guidance on a rolling basis, the EEOC recently dispensed with a 22-year-old policy statement that disfavored mandatory arbitration agreements between employers and employees....more

Epstein Becker & Green

Court to Consider Whether California Ride Share Drivers Who Make Airport Runs Are Exempt from the Federal Arbitration Act

Epstein Becker & Green on

On November 26, 2019, San Francisco Superior Court Judge Richard B. Ulmer ruled that the Federal Arbitration Act (“FAA”) might not apply to Uber drivers who are engaged in interstate commerce while driving passengers to or...more

Carlton Fields

Nevada Supreme Court Reverses Ordered Arbitration as the FAA Preempts NRS 597.995

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Nevada Revised Statutes section 597.995 requires agreements that include an arbitration provision to also include a specific authorization for the arbitration provision showing that the parties affirmatively agreed to that...more

King & Spalding

California Rule Barring Enforcement of Contractual Provisions that Limit Consumers’ Right to Seek Public Injunctions Not Preempted...

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On June 28, 2019, the Ninth Circuit issued three decisions confirming that the FAA does not preempt California’s so-called “McGill” rule. As a result, the court invalidated provisions of the arbitration agreements in each...more

Ballard Spahr LLP

Ninth Circuit Holds FAA Does Not Preempt California’s McGill Rule

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Earlier this year, we reported on the pendency of several Ninth Circuit appeals concerning the enforceability of consumer arbitration agreements with respect to claims for “public” injunctive relief. On June 28, 2019, in...more

Fisher Phillips

The See-Saw World of Uber’s Arbitration Agreement Again Tips In Uber’s Favor

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Ever since Uber became part of our everyday world, the mandatory arbitration agreement it requires its independent contractor drivers to sign has been under constant scrutiny—and attack. A recent decision, however, fell in...more

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

California Court Invalidates Arbitration Agreement With PAGA Waiver

In an unpublished decision, the California Court of Appeal, Third Appellate District denied an employer’s motion to compel arbitration of a former employee’s Private Attorneys General Act (PAGA) claims. Instead, the court...more

Carlton Fields

Illinois Appellate Court Holds Nebraska Arbitration Act Reverse Preempts Federal Arbitration Act and Renders Arbitration Clause in...

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An Illinois appellate court recently affirmed a lower court decision granting summary judgment and denying defendant insurers’ motion to compel arbitration where Nebraska law governed, reverse preempted the Federal...more

Genova Burns LLC

New Jersey Appellate Division Invalidates Jenny Craig Employee Arbitration Provision

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This week, in Marilyn Flanzman v. Jenny Craig Inc. et al., No. A-2580-17, a panel of the Appellate Division found that an arbitration provision between weight loss company Jenny Craig and a former employee was unenforceable...more

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

Kentucky Supreme Court Rules FAA Does Not Protect Mandatory Employment Arbitration

In a surprise decision, the Supreme Court of Kentucky ruled on September 27, 2018, that the Federal Arbitration Act (FAA) does not protect employment arbitration agreements that are required as a condition of employment....more

Carlton Fields

Court Interprets Contract Containing Mandatory De Novo Review Provision Of Arbitration Award

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The Tenth Circuit Court of Appeals determined that an ADR provision of an agreement which called for arbitration, but also indicated that either party may “notwithstanding any provision of law bring an action against the...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

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

Allen Matkins

Ninth Circuit Strikes Down Class Action Waivers In Employment Arbitration Agreements

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On August 22, 2016, the U.S. Court of Appeals for the 9th Circuit (which covers California) struck down a "concerted action waiver" (i.e., a waiver of class, collective or other group actions) in an arbitration agreement....more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Invalidates Arbitration Agreement with Class Action Waiver

On August 22, 2016, the Ninth Circuit joined the Seventh Circuit in the split amongst U.S. Circuit Courts of Appeal on the issue of enforceability of employment arbitration agreements precluding class actions. The Ninth...more

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