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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 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...

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...

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...

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...

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’...