After recently hearing oral argument in Lamps Plus Inc. v. Varela, the United States Supreme Court is set to decide whether the Federal Arbitration Act forecloses a state-law interpretation of an arbitration agreement that would result in permitting class arbitration. Arbitration is a function of contract, and therefore parties may agree to aggregated arbitrations in
What Employers Should Know About This Week’s “Drama” At The CFPB
Seyfarth Synopsis: A somewhat bizarre event – even by this year’s standard of unusual current events – hit the news stream earlier this week, as two “Acting Directors” showed up to work on Monday morning at the U.S. Government’s Consumer Financial Protection Bureau, also known as the CFPB. In today’s vlog, Partner Jerry Maatman of
Senate Kills CFPB Rule Prohibiting Class Action Waivers
Today the Senate struck down a new Consumer Financial Protection Bureau (“CFPB”) rule which would have prohibited providers of financial products and services from including class action waivers in their arbitration agreements with consumers. The action is a win for the financial services industry.
Background
Way back in March 2015 we blogged about the CFPB’s
Supreme Court to California Courts: You Can’t Ignore Us or the FAA
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 yet another blow to California Courts’ attempts to invalidate class action waivers.
Background
The plaintiffs in Imburgia
Consumer Financial Protection Bureau Issues Final Arbitration Report
One of the largest issues to loom over the class action battlefield in the past decade has been the use of arbitration clauses in consumer contractual relationships. As many know, and as discussed in our sister blog, Workplace Class Action Blog, the United States Supreme Court’s seminal 2011 decision in AT&T Mobility v. Concepcion
Brown v. DirecTV LLC: Court Orders Arbitration of TCPA claim
On June 26, 2013, in Brown v. DirecTV, LLC, et al., Case No. 2:12-cv-08382, Judge Gee, sitting in the Central District of California, granted DirecTV’s motion to compel arbitration, rejecting two efforts by the Plaintiff to keep the matter in federal court: (1) that TCPA claims did not “arise under or relate
Supreme Court Enforces Class Arbitration Waivers in Italian Colors
In American Express Co. v. Italian Colors Restaurant, the Supreme Court held in a 5-3 decision that class waivers in arbitration agreements are enforceable, even if the plaintiff’s cost of arbitrating her federal statutory claim exceeds her potential recovery.
Background
Italian Colors brought a class action against American Express for alleged federal antitrust violations
Oxford Health Plans v. Sutter – Be Careful What You Ask For Because You Might Get Class Arbitration
On June 10, 2013, the Supreme Court issued an arbitration decision underscoring the importance of including express class waivers in arbitration agreements. In a unanimous decision, the Supreme Court upheld an arbitrator’s ruling that an arguably ambiguous arbitration provision permitted class arbitration. Oxford Health Plans, LLC v. Sutter, No. 12-135, 2013 WL 2459522, 569
Gentry Survives For Now, But Are Its Days Numbered?
Notwithstanding the U.S. Supreme Court’s 2011 decision in AT&T Mobility v. Concepcion, California courts continue to muddle through whether a court can mandate classwide arbitration, particularly in the context of arbitration agreements between employer and employee. Truly Nolen of America v. Superior Court, decided this week by California’s Fourth District Court of Appeal,