Category: Arbitration: Class

Arbitration/Consumers/Class Actions/FAA: Second District, Division 8 Rules That Consumer Legal Remedies Act’s Prohibition Against Class Waivers Is Preempted By The Federal Arbitration Act

“Saving Clause” of the FAA Doesn’t Save Consumer’s Unwaivable Statutory Rights Here      A hot arbitration topic is whether in various circumstances the Federal Arbitration Act (FAA) preempts “unwaivable statutory rights” under state law.  That was an important question in Flores v. West Covina Auto Group, Case No. B238265 (2nd Dist. Div. 8 January 11, […]

Arbitration/Class Action/FAA/Waiver: United States Supreme Court Grants Certiorari In American Express Company v. Italian Colors Restaurant

  Can An Arbitration Class Action Waiver Be Enforced If The Plaintiff Would Not Be Able To Effectively Vindicate Federal Statutory Rights Through Arbitration?      The United States Supreme Court will soon decide whether its holding in AT&T Mobility LLC v. Concepcion, 131 S.Ct. 1740 (2011), concerning the enforceability of a class action waiver through […]

Arbitration/Scope/Fees: Court of Appeal Affirms Arbitration Award Leaving Out Attorney Who Refused Arbitration

Standing On One’s Right May Not Always Be The Best Way To Protect One’s Rights      The stake in the next case was a share of a $380,000 attorney’s fees award in a class action lawsuit.  The parties included the class, whose representative was McCall, and two law firms that had represented the class:  Morris […]

Arbitration/Class/Waiver/Consumers/Enforceability: Second District Division 6 Reverses Denial of Automobile Dealership’s Motion to Compel Arbitration

  Ducks Addressing Viability of Gentry v. Superior Court By Distinguishing It As Case Dealing With Employment Issues, Not Consumer Issues      Plaintiff purchased a BMW, and filed a complaint alleging a violation of the Consumers Legal Remedies Act (CLRA) and other consumer protection statutes, because some BMWs do not come with a spare tire, […]

Arbitration/Res Judicata/Waiver/Consumers/Class Action: 2006 Denial Of Mediation Is Reversed In 2011 And Reversal Is Affirmed In 2012–Concepcion Made The Difference

Court of Appeal Says It Would Have Been Futile To Seek Reversal Earlier      In Phillips v. Sprint, Case No. A134371 (First Dist. Div. 3 Sept. 26, 2012) (Pollak, J., author) (published), the Court of Appeal considered a situation in which the trial court denied a request to arbitrate in 2006 in a consumer class […]

Arbitration/Preemption/Standard of Review: Federal Arbitration Act Preempts Consumer Legal Remedies Act’s Prohibition Against Class-Action Waivers

  Fourth District, Division 3 Reverses Denial of Petition to Compel Arbitration and Remands to Consider Unconscionability Challenge      Plaintiff Caron, who experienced difficulties with her certified preowned Mercedes Benz, sued Mercedes Financial and Mission Imports for relief under the Consumer Legal Remedies Act (CRLA), the Automobile Sales Finance Act, and unfair competition law.  Defendants […]

Arbitration/Employment/Class Actions/Enforceability: First District, Division 1 Affirms Order Compelling Employee To Individual Arbitration

Viability of Gentry v. Superior Court is Sidestepped By Court of Appeal      Plaintiff/employee Lorena Nelsen filed a putative class action lawsuit against her former employer LPI for multiple Labor Code violations.  Because Nelsen signed an arbitration agreement when she was hired, the employer, LPI moved, successfully, to compel arbitration with Nelsen all alone.  Nelsen […]

Arbitration/Federal Preemption/Class Actions/Employment: Second District, Division 2 Broadly Applies Federal Preemption in Labor Code Violation Case to Uphold Arbitration

Vindication of Statutory Rights Loophole to Arbitration Is Closed      In an April 25, 2012 post, we suggested, based on Kinecta Alternative Financial Solutions, Inc. v. Superior Court of Los Angeles County, (2012) (partially published) (District 2, Div. 3), that “the rule in Gentry [42 Cal.4th 443 (2007)] allowing for invalidation of class arbitration waiver […]

Arbitration/Class Action Waiver: Party Cannot Be Compelled To Arbitrate Class Arbitration Where Arbitration Provision Neither Authorizes Nor Prohibits Class Action

  But Rule in Gentry Allowing For Invalidation of Class Arbitration Waiver Where Nonwaivable Statutory Rights Are At Issue Manages to Maintain Toehold      Once again, the Court of Appeal ventures into the thicket of class action arbitration waivers, threading its way around ATT&T Mobility LLC v. Concepcion, __ U.S. __ , 131 S.Ct. 1740 […]

Arbitration/Class Actions/Waiver/Unconscionability: Second District, Division 7, Agreeing That Class Action Waiver Is Unconscionable, Affirms Trial Court

  No Need To Decide Whether Concepcion Overrules Gentry Here – Because "This Is Not A Close Case"      These proceedings began in 2004 when Ralphs Grocery Company employees sued Ralphs for alleged violations of the Labor Code and Unfair Competition law. The proceedings moved up and down the appellate ladder. Eventually, after a remand, […]