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Waivers Arbitration Arbitration Agreements

Payne & Fears

January 2024 Case Summaries

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Summary:  An employer waives its right to arbitration if it fails to pay its share of the arbitration filing fee within 30 days of the payment’s due date....more

Seyfarth Shaw LLP

PAGA Paraphrased – DeMarinis v. Heritage Bank of Commerce

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Seyfarth Synopsis: The first reported PAGA case of 2024 serves as a reminder of the importance of precise language for an enforceable PAGA waiver and the risks of including a “poison pill” provision in a...more

Meyers Nave

Recent Developments Since the Viking River Cruises Decision: 5 Key Things California Employers Need To Know

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What Happens to the “Non-individual” PAGA Claims Now that Viking River Cruises Compels Arbitration of the “Individual” PAGA Claim? The U.S. Supreme Court’s 2022 decision in Viking River Cruises v. Moriana was widely seen...more

Proskauer - California Employment Law

Employer Waived Right To Arbitration By Failing To Timely Pay Arbitration Fees

Espinoza v. Superior Court, 83 Cal. App. 5th 761 (2022) - Rosa M. Quincoza Espinoza sued her former employer, Centinela Skilled Nursing & Wellness Centre West, LLC, for discrimination and retaliation. The employer filed a...more

Mitchell, Williams, Selig, Gates & Woodyard,...

Arkansas Supreme Court Upholds Validity of Class-Action Waiver Clause Even In Absence of Arbitration Clause

Arbitration agreements and class-action waivers have been important tools for employers seeking to reduce expense and exposure in cases brought by employees. These legal instruments have begun to be limited, though. ...more

Proskauer - Minding Your Business

Supreme Court Rules on the Requirements for a Waiver of the Right to Arbitrate

The United States Supreme Court recently resolved a circuit split regarding when a party has waived its contractual right to arbitrate by participating in litigation prior to seeking to arbitrate a dispute. In Morgan v....more

Stark & Stark

Use It or Lose It: Supreme Court Rules Against Special Rules Favoring Arbitration When Deciding Waiver of That Right

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On May 23, 2022, the U.S. Supreme Court, in a unanimous decision, decided Morgan v. Sundance, Inc., No. 21-328, in favor of an employee who sued her employer, a Taco Bell franchisee, for wage theft. The Court concluded that...more

Stokes Wagner

Supreme Court Rules California Employee Is Bound By Arbitration Agreement She Signed and Thus, Lacks Standing to Bring...

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On May 15, 2022, the U.S. Supreme Court issued the much-anticipated and employer-favorable ruling in Viking River Cruises v. Moriana, holding, in an 8-1 decision, that the Federal Arbitration Act (FAA) preempts the California...more

Holland & Knight LLP

U.S. Supreme Court Holds Individual PAGA Claims May Be Compelled to Arbitration

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The U.S. Supreme Court issued an 8-1 decision in Viking River Cruises, Inc. v. Moriana, 596 U.S. __ (2022) on June 15, 2022, holding that the Federal Arbitration Act (FAA) preempts the California Supreme Court ruling in...more

Benesch

Supreme Court Provides Roadmap for Avoiding Large PAGA Actions

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On June 15, 2022, in Viking River Cruises vs. Moriana, the U.S. Supreme Court ruled 8-1 (with Justice Thomas the lone dissenter) that employers can compel arbitration of an employee's individual claims regarding labor code...more

Mintz - Employment Viewpoints

The Supreme Court Strikes a Blow to PAGA: What California Employers Need to Know

The U.S. Supreme Court has given businesses with California employees the option (at least for now) to avoid employee-initiated court proceedings under California’s Private Attorneys General Act (PAGA). On June 15, 2022, the...more

Smith Anderson

Does the Federal Arbitration Act Favor Arbitration?

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A recent decision of the United States Supreme Court addressed a circuit split regarding the propriety of arbitration-specific procedural rules. In support of adopting such rules, nine of the eleven federal circuits...more

Adams and Reese LLP

SCOTUS Unanimously Rejects an Arbitration-Specific Waiver Rule

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The Supreme Court has unanimously held that the broad policy favoring arbitration does not authorize federal courts to create a special rule necessitating a showing of prejudice in order to demonstrate the right to...more

Nelson Mullins Riley & Scarborough LLP

Arbitration Clauses as Separate Executory Contracts

This term, Supreme Court Justice Elena Kagan has authored a pair of opinions related to arbitration. The first of these decisions, Badgerow v. Walters, 20-1143, 142 S. Ct. 1310 (2022) came down on March 31, 2022, where...more

Foley & Lardner LLP

Supreme Court Makes It Easier to Establish a Waiver of Arbitration through a Pursuit of Litigation

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On May 23, the Supreme Court resolved a circuit split in holding that the Federal Arbitration Act’s (FAA) “policy favoring arbitration” does not allow federal courts to create arbitration-specific federal procedural rules....more

Kohrman Jackson & Krantz LLP

Supreme Court Makes It Easier to Challenge Delayed Arbitration Request

Resolving an issue over when a party has waived their right to arbitrate, the United States Supreme Court recently granted plaintiff’s a major victory, holding that litigants are no longer required to show prejudice when...more

Kilpatrick

SCOTUS displays short memory in rejecting the prejudice requirement for waivers of the right to arbitrate

Kilpatrick on

Takeaway: In Morgan v. Sundance, Inc., --- S. Ct. ----, No. 21-328, 2022 WL 1611788 (May 23, 2022), the Supreme Court rejected the arbitration-specific rule requiring a finding of prejudice for a waiver of the right to...more

Burr & Forman

SCOTUS: Waiver of Arbitration Does Not Require Prejudice

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A unanimous Supreme Court held May 23 that a party’s waiver of its arbitration right does not require showing prejudice to an opposing party, because the Federal Arbitration Act (“FAA”) prohibits arbitration-specific rules....more

ArentFox Schiff

Supreme Court Rules That Prejudice Is Not a Required Element To Establish Waiver of an Agreement To Arbitrate

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In a unanimous decision authored by Justice Elena Kagan, the US Supreme Court ruled that in determining whether a party has waived its right to enforce an arbitration agreement, the party asserting waiver does not have to...more

Obermayer Rebmann Maxwell & Hippel LLP

Waiving Goodbye: Supreme Court Says Prejudice No Longer Required to Establish Employer Waived Right to Arbitrate Employee’s Claims

Employers sometimes favor resolving disputes with their employees in arbitration as opposed to in front of a jury. Such a private tribunal may streamline discovery procedures, offer a quicker resolution, and, theoretically,...more

BakerHostetler

Supreme Court Holds Prejudice Not Required for Waiver of Right to Arbitrate - But Does Little Else

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In a much-anticipated opinion, the Supreme Court unanimously held that a party claiming waiver of the right to arbitrate need not show prejudice, in Morgan v. Sundance, Inc., Case No. 21-328 (May 23, 2022). While the holding...more

McGlinchey Stafford

No Harm, No Foul: Court Rules Prejudice Not Required to Establish Waiver of a Right to Arbitrate

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In a unanimous Opinion issued Monday, May 23, the United States Supreme Court resolved a circuit split and held that waiver of a right to arbitrate does not require a showing of prejudice to the opposing party....more

King & Spalding

Morgan v. Sundance argument: Is an arbitration clause “use it or lose it”?

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It’s common for a plaintiff to file a lawsuit despite a contract dictating that the claims are governed by an arbitration clause. And it’s common for a defendant to then file a motion to stay the litigation to kick the...more

Genova Burns LLC

FAA Trumps NJLAD: NJ Superior Court Upholds Employer’s Arbitration Agreement in NJLAD Case

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In a matter of first impression, the Monmouth County Law Division in Janco v. Bay Ridge Automotive Management Corp., found that a former employee’s claims brought under the New Jersey Law Against Discrimination were subject...more

Carlton Fields

Seventh Circuit Agrees Defendant Expressly Waived Right to Arbitrate by Withdrawing Arbitration Argument From Motion to Dismiss

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The Seventh Circuit affirmed a district court order that the defendant waived its right to arbitrate by withdrawing a venue-based arbitration argument from its motion to dismiss. ...more

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