Supreme Court Rules Class Arbitration Not Permitted When Agreement Is Silent

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court in a 5-3 decision April 27 reversed a Second Circuit U.S. Court of Appeals ruling and held that an arbitration panel exceeded its authority under the Federal Arbitration Act (FAA) by construing an arbitration clause to permit class arbitration...

Supreme Court Finds Search Of Employees' Text Messages Was Reasonable

WASHINGTON, D.C. - (Mealey's) A police department's search of the transcripts of its employees' text messages was reasonable and did not violate the employees' Fourth Amendment rights, the U.S. Supreme Court ruled June 17, reversing a ruling by the Ninth Circuit U.S. Court of Appeals...

Split U.S. Supreme Court: Federal Arbitration Act Preempts California Rule

WASHINGTON, D.C. - (Mealey's) The Federal Arbitration Act (FAA) preempts a California rule established in Discover Bank v. Superior Court (113 P.3d 1100 [Cal. 2005]) that classifies most collective-arbitration waivers in consumer contracts as unconscionable, a split U.S. Supreme Court ruled April...

Supreme Court Upholds AT&T's Contract Clause Prohibiting Class-Wide Arbitration

On April 27, 2011, the United States Supreme Court issued an important decision upholding an arbitration clause barring class-wide arbitration. The decision has important implications for telecommunications and other consumer contracts, including website terms and conditions. In AT&T Mobility LLC...

Ballard Spahr LLP: 11th Circuit Weighs In On AT&T Mobility v. Concepcion

By the Consumer Financial Services Group As previously reported , in AT&T Mobility LLC v. Concepcion the U.S. Supreme Court on April 27, 2011, held that the Federal Arbitration Act (FAA) preempts California law classifying most class action waivers in arbitration agreements as unconscionable....

Duane Morris LLP: New Jersey Appeals Court Distringuishes Supreme Court Ruling On Arbitration Clauses Barring Class Action Lawsuits

The New Jersey Appellate Division ruled-despite the recent U.S. Supreme Court decision in AT&T Mobility LLC v. Concepcion -that binding arbitration clauses in consumer contracts that bar class-action suits still may be subject to challenge if they are poorly worded and contain contradictory language...

Ballard Spahr Obtains Ruling That FAA Preempts Pennsylvania Unconscionability Law On Class Action Waivers

By the Consumer Financial Services Group In the first opinion to address the issue following the U.S. Supreme Court's landmark decision in AT&T Mobility LLC v. Concepcion , a Pennsylvania federal district court has held that the Federal Arbitration Act (FAA) preempts Pennsylvania law, refusing...

Credit Act's Silence On Arbitration Means Claims Must Be Arbitrated, High Court Rules

WASHINGTON, D.C. - (Mealey's) Because the Credit Repair Organizations Act (CROA) does not specifically state whether claims brought pursuant to the act are eligible for arbitration, the Federal Arbitration Act (FAA) requires an arbitration agreement in a credit card agreement "to be enforced...

Ballard Spahr LLP: Arbitration Enforcement Trend Continues At Supreme Court

By the Consumer Financial Services Group For the fourth time in less than a year, the U.S. Supreme Court has championed the "emphatic federal policy in favor of arbitral dispute resolution" and vacated a state appellate court's decision on the grounds that it contravened the Federal...

Fulbright Briefing: In Mixed Ruling, California Court Addresses Interplay Between Arbitration and Choice-of-Law Provisions in Customer Agreements

By Ellen Bush Sessions , Eric A. Herzog and Spencer Persson In a recent decision with implications for broker-dealers and other companies that do business in California, the California Court of Appeal considered whether the Federal Arbitration Act (FAA) (9 U.S.C. sections 1-16) preempted application...

Standing To Challenge FISA's Constitutionality Debated Before High Court

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Oct. 29 heard arguments on the ability of a group of respondents to challenge the constitutionality of a law that its opponents characterize as "dragnet surveillance" related to the power that it gives the executive branch of the government...

U.S. High Court: Arbitrator Must Decide On Validity Of Noncompete Agreement

WASHINGTON, D.C. - (Mealey's) The Oklahoma Supreme Court failed to properly apply a basic tenet of the Federal Arbitration Act (FAA) when it declared the noncompete agreement in two employment contracts null and void rather than leaving the determination up to an arbitrator, the U.S. Supreme Court...

High Court Hears Arguments On Validity Of Arbitration Clause In Antitrust Action

WASHINGTON, D.C. - (Mealey's) American Express Co. (AmEx) told the U.S. Supreme Court on Feb. 27 in oral arguments that the Second Circuit U.S. Court of Appeals erred in ruling that a mandatory class action waiver clause in AmEx's standardized service contract violated the Federal Arbitration...

High Court: Class-Action Waiver In Arbitration Clause Is Valid In Antitrust Case

WASHINGTON, D.C. - (Mealey's) A mandatory class action waiver clause in American Express Co.'s (AmEx) standardized service contract is enforceable under the Federal Arbitration Act (FAA), even if the cost of individual arbitration of merchants' antitrust claims is prohibitively high, the...

Ballard Spahr LLP: 5th Circuit Rejects NLRB Ruling Invalidating Class Action Waivers In Arbitration Agreements

By Steven W. Suflas, Mark J. Levin and Erin K. Clarke On December 3, 2013, the U.S. Court of Appeals for the Fifth Circuit rejected the National Labor Relations Board’s (NLRB) ruling that an employer violates the National Labor Relations Act (NLRA) by requiring employees to waive their rights...

Williams Mullen: In Rebuff To Labor Board, 5th Circuit Sustains Arbitration Agreements With Class Action Waivers

By David C. Burton , Beth Hirsch Berman and J. Nelson Wilkinson In recent years, employers have faced increased, and increasingly expensive, class action litigation from current and former employees. In response, many employers have turned to arbitration agreements with class-action waivers as...