The Supreme Court's Decision on Unconscionability, the Purpose of the Federal Arbitration Act, and Banning Class Arbitration: Dr. John E. Murray, Jr. on AT&T Mobility LLC v. Concepcion

Under Federal Arbitration Act § 2, an arbitration agreement "shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract." California law set forth certain circumstances in which "class action waivers" in...

Conceiving of the End of Class Arbitration: Supreme Court's Action in AT&T Mobility

By John E. Porter and Ronald M. Oster In AT&T Mobility LLC v. Concepcion (2011), a divided U.S. Supreme Court ruled that the FAA preempted CA's Discover Bank rule, which held waivers of class arbitration in consumer contracts unconscionable and unenforceable. The FAA prohibits states from conditioning...

Mandatory Provisions—Not in My State—McCarran-Ferguson, the FAA, and Reverse Preemption

By John E. James and Michael B. Rush, Attorneys, Potter Anderson & Corroon LLP In their article appearing in the May/June 2011 issue of Coverage , "Mandatory Provisions-Not in My State-McCarran-Ferguson, the FAA, and Reverse Preemption," John E. James and Michael B. Rush examine how...

Cruz v. Cingular Wireless, LLC, 2011 U.S. App. LEXIS 16811 (August 11, 2011)

LexisNexis Overview: Florida public policy that would invalidate waivers of class actions in cell phone customers' contracts was an obstacle to the Federal Arbitration Act's objective of enforcing arbitration agreements according to their terms, and was preempted; compelling individual arbitration...

Cruz v. Cingular Wireless, LLC, 2011 U.S. App. LEXIS 16811 (August 11, 2011)

LexisNexis Overview: Florida public policy that would invalidate waivers of class actions in cell phone customers' contracts was an obstacle to the Federal Arbitration Act's objective of enforcing arbitration agreements according to their terms, and was preempted; compelling individual arbitration...

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...

Court Permits Non-Sovereign to Invoke Sovereign Immunity Defense of Absent, Defaulting Non-U.S. Sovereign

By Louis M. Solomon First Investment Corp of the Marshall Islands v. Fujian Mawei Shipbuilding, Ltd. et al. , Civil Action No. 09-3663 (E.D. La. June 2011) [ enhanced version available to lexis.com subscribers ], addresses the interesting international practice question under what circumstances...

Ballard Spahr LLP: 3rd Circuit Finds FAA Preempts N.J. Law On Class Action Waivers

By the Consumer Financial Services Group In the first federal appeals court decision to apply AT&T Mobility LLC v. Concepcion to a non-AT&T Mobility arbitration agreement, the U.S. Court of Appeals for the Third Circuit has held that the Federal Arbitration Act (FAA) preempts New Jersey...

Foley & Lardner: Avoiding Problems With Arbitrator Disclosures: Practical Lessons From Karlseng v. Cooke

By Eric Haab , Partner, Foley & Lardner LLP For many decades, the reinsurance marketplace has adopted arbitration as the preferred mode of dispute resolution. The expressed goals of arbitration are familiar - timely and efficient resolution of disputes by a panel of experts familiar with the intricacies...

Supreme Court Hears Oral Argument In Credit Repair Organizations Act Suit

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Oct. 11 heard oral arguments debating whether the words "right to sue" in the Credit Repair Organizations Act (CROA) mean only that aggrieved parties may go to arbitration to settle their claims ( CompuCredit Corp., et al. v. Wanda...

California Court Avoids Concepcion By Striking Arbitration Agreement Without Considering Class Action Waiver

A recent decision by the California Court of Appeal underscores the importance of making arbitration provisions with class action waivers as consumer-friendly as possible - even after the U.S. Supreme Court's landmark ruling in AT&T Mobility v. Concepcion, which held that state laws barring the...

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...

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...

Supreme Court Hears Arguments In Health Care Class Arbitration Dispute

WASHINGTON, D.C. — The U.S. Supreme Court on March 25 heard oral arguments to address whether, in a dispute over a health insurer’s reimbursement of physicians’ claim, an arbitrator acted within his authority in determining that the dispute could proceed as a class arbitration Oxford...

Supreme Court Affirms Decision In Health Care Class Arbitration Dispute

WASHINGTON, D.C. - (Mealey's) In a unanimous opinion, the U.S. Supreme Court on June 10 affirmed that an arbitrator acted within his powers under the Federal Arbitration Act (FAA) in determining that parties affirmatively "agreed to authorize class arbitration" in a case involving a dispute...

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...

Supreme Court Affirms Decision In Health Care Class Arbitration Dispute

WASHINGTON, D.C. - (Mealey's) In a unanimous opinion, the U.S. Supreme Court on June 10 affirmed that an arbitrator acted within his powers under the Federal Arbitration Act (FAA) in determining that parties affirmatively "agreed to authorize class arbitration" in a case involving a dispute...

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...

Ballard Spahr LLP: Website Hyperlink Alone Does Not Establish User’s Assent to Arbitration Agreement, 9th Circuit Holds

By the Consumer Financial Services Group In a case intersecting the 89-year-old Federal Arbitration Act (FAA) and the digital era, the Ninth Circuit has ruled that a consumer who did not read the company’s terms of use when ordering a product on its website was not bound by the terms’...