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Unenforceable Contract Terms Mandatory Arbitration Clauses

Ervin Cohen & Jessup LLP

Previous Arbitration Agreements Are Potentially Unenforceable Against Re-Hired Employees

Despite its best efforts, the California Legislature has been unable to substantially curtail the popularity of employment arbitrations in California.  The hostility to employment arbitration remains evident, however, among...more

BakerHostetler

At Long Last, California District Court Permanently Enjoins Enforcement of AB 51

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There are times when one would rather not be proven right. Nearly four years ago, a California district court invalidated AB 51, which sought to prohibit mandatory arbitration by, among other things, calling for criminal...more

Holland & Knight LLP

The Law on ERISA Plan Arbitration Provisions Remains Unsettled

Holland & Knight LLP on

As previously discussed, courts continue to disagree over the enforceability of mandatory arbitration provisions containing class action waivers set forth in benefit plans governed by the Employee Retirement Income Security...more

Lathrop GPM

California Federal Court Declares Arbitration Clause Unenforceable

Lathrop GPM on

In Munoz, v. Earthgrains Distribution, LLC, 2023 WL 5986129 (S.D. Cal. Sept. 13, 2023), the plaintiffs, members of a class of independent distributors of baked goods for Earthgrains and other bakeries, alleged that they were...more

Carlton Fields

New York Appellate Court Reverses Order Compelling Arbitration, Holds Collective Bargaining Agreement Arbitration Provisions...

Carlton Fields on

New York statutes classify certain civil service positions as exempt where such positions are confidential in nature and require personal qualities that cannot practicably be tested by an examination. These positions are...more

Latham & Watkins LLP

Court of Appeal Rules on Enforceability of Mandatory ADR Clauses

Latham & Watkins LLP on

A recent decision reminds parties about the need to draft dispute resolution clauses that are tailored to the parties’ agreement. The Court of Appeal recently ruled that an alternative dispute resolution (ADR) clause in...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

White and Williams LLP

In All Fairness: Illinois Appellate Court Finds That Arbitration Clause in a Residential Construction Contract Was Unconscionable...

White and Williams LLP on

In Bain v. Airoom, LLC, No. 1-21-001, 2022 Ill. App. LEXIS 241, the Appellate Court of Illinois (Appellate Court) considered whether the lower court erred in enforcing an arbitration clause in a construction contract between...more

Buchalter

More Than Meets the Eye: TN Court Finds Arbitration Agreement in Employee Handbook Non-Binding

Buchalter on

In Mankin Media Systems, Inv. v. Timothy Crowder, No. 19CV-48300W (Jun. 30, 2022), the Court of Appeals of Tennessee reversed the confirmation of an arbitration award because the so-called arbitration clause appeared in the...more

Carlton Fields

Georgia Supreme Court Finds Mandatory Arbitration Clause in Law Firm Engagement Agreement Is Neither Unconscionable nor Void as...

Carlton Fields on

The plaintiff sued its former lawyer and law firm for legal malpractice. The defendants moved to dismiss and compel arbitration based on a mandatory arbitration clause in the parties’ engagement agreement. The trial court...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

Skadden, Arps, Slate, Meagher & Flom LLP

Growing State Anti-Discrimination and Anti-Harassment Protections Create Patchwork of Regulations for Employers

The #MeToo Movement, now in its third year, continued its evolution from grassroots activism to legislative change in 2019, with new laws addressing discrimination and harassment emerging from state governments and resulting...more

Littler

EEOC Rescinds Policy Statement Disfavoring Arbitration Agreements

Littler on

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

Carlton Fields

Eighth Circuit Rejects Claim That Arbitration Clause in Retainer Was Unconscionable

Carlton Fields on

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

Fisher Phillips

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

Fisher Phillips on

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

Carlton Fields

District Court Grants Motion to Compel Arbitration, Finding Arbitration Provision Not Severable From Allegedly Void Contract

Carlton Fields on

A Pennsylvania federal district court granted a motion to compel arbitration pursuant to 9 U.S.C. § 4 of the Federal Arbitration Act, over objection by the defendant on severability grounds. The defendant argued that its...more

Carlton Fields

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

Carlton Fields on

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

Winstead PC

Federal Court Holds That Trust Beneficiaries’ Claims Against Brokerage Firm Should Not Be Compelled To Arbitration

Winstead PC on

In Freeman v. Fid. Brokerage Servs., LLC, the mother of the plaintiffs executed a living trust agreement. No 3:18-CV-0947-G, 2019 U.S. Dist. LEXIS 34694 (N.D. Tex. March 5, 2019)....more

Fisher Phillips

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

Fisher Phillips on

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

Troutman Pepper Locke

Pros And Cons Of Mandatory Arbitration Policies For Employment Disputes

Troutman Pepper Locke on

Q.  Our company has a policy providing for mandatory arbitration of employment claims. I heard recently that some companies are moving away from these types of policies.  What are the pros and cons of requiring all employees...more

Hogan Lovells

Acknowledgment Does Not Equal Agreement Says New Jersey Appellate Division

Hogan Lovells on

Following up on a recent post about the intricacies of mandatory arbitration agreements in the workplace, the New Jersey Appellate Division recently held that an arbitration clause that employees did not explicitly agree to...more

Carlton Fields

California Appellate Court Holds Arbitration Agreement and Delegation Clause Unenforceable for Failure to File with State...

Carlton Fields on

The California Court of Appeals became the latest court to determine that a common arbitration agreement related to the EquityComp workers’ compensation insurance program and accompanying reinsurance agreements is...more

Genova Burns LLC

New Jersey Supreme Court Rules Mis-Labeled Arbitration Provision in Consumer Contract Unenforceable

Genova Burns LLC on

A day after the U.S. Supreme Court issued a decision seen as pro-arbitration – see our January 10, 2019 Blog Post, Arbitrator to Decide Whether Dispute is Subject to Arbitration Even if Argument is “Wholly Groundless,”...more

Genova Burns LLC

Best If Used By: Keep an Eye Out for Arbitration Agreement Expiration Dates

Genova Burns LLC on

A recent opinion in the case of Susan L. O’Keefe v. Edmund Optics, Inc., addressed the question of whether an arbitration provision in a written employment agreement could survive the expiration of the agreement’s one-year...more

Bradley Arant Boult Cummings LLP

Florida Court Finds Arbitration Clause Expanding Authority of Courts to Vacate/Modify Arbitration Awards Unenforceable

The Florida Arbitration Code addresses the confirmation, vacation, modification or correction, and appeal of arbitration awards in Florida. In September, a Florida District Court of Appeal addressed whether parties may expand...more

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