Category: Arbitration: Enforceability

Arbitration, Public Injunctive Relief: 9th Circuit Holds Arbitration Provision Allowing For Public Injunctive Relief, While Prohibiting Private Attorneys General, Is Enforceable

Arbitration Provision Allowing For Public Injunctive Relief Does Not Violate McGill Rule.         The so-called McGill rule states California’s legal requirement that contracts allow public injunctive relief. So what happens if a contract requires arbitration of disputes, provides for all remedies in arbitration, and further provides that the claimant cannot act as a private attorney […]

Arbitration, Public Policy: An Arbitration Provision Purporting To Waive Consumer’s Right To Seek Public Injunctive Relief Is Invalid And Unenforceable

McGill Is Still Good Law.         The action in Joe Maldonado v. Fast Auto Loans, Inc., G058645 (4/3  2/8/21) (O'Leary, Aronson, Thompson) centered on whether McGill v. Citibank, N.A., 2 Cal.5th 945  (2017) is still good California law and whether it has been preempted by the Federal Arbitration Act. McGill, which we posted about on […]

Internet Commerce: 9th Circuit Rules Change-Of-Terms Provision Did Not Exempt Website Visitor From Arbitration Where Visitor Was Unaware Of The Contract Terms

Original Contract Required Arbitration Of Dispute, New Terms Exempted Consumer Claim From Arbitration, And Website Visitor Was Not Aware Of New Contract Terms.         Rachel Stover  attempted to prosecute a class action complaint against Experian, alleging that Experian had provided her with a credit reporting score represented to be useful, but essentially useless, because the […]

Arbitration, Policy, Choice of Law, FAA, Severance: McGill v Citibank Lives: Arbitration Provision Eliminating Any Forum For Public Injunctive Relief Is Unenforceable

Case Offers Primer On McGill v. Citibank, N.A.         Defendant and appellant DACM, Inc. (Del Amo) sold a motorcycle to Joseph Mejia, who paid some cash and financed the remainder of the purchase with a credit card. And, the credit card included an arbitration provision covering Del Amo. So when Mejia sued Del Amo for […]

Arbitration: On Issue Of First Impression, 9th Circuit Holds Arbitration Obligations Survived Contract Termination

Shivkov v Artex Risk Solutions Arises From Tax Shelter Gone Sideways . . .         The numerous Plaintiffs in Shivkov, et al v. Artex Risk Solutions, Inc., et al, No. 19-16746 (9th Cir.  9/9/20) (Smith, Fisher, Hawkins), probably felt that the Artex Risk Solutions was a misnomer by the time they brought suit. Defendants allegedly […]

Arbitration, Employment, Unconscionability: First Dist. Div. 3 Agrees Arbitration Agreement Is Unconscionable And Unenforceable

Limited Discovery And Lack Of Mutuality Were Important To Result.     The Court of Appeal affirmed orders denying motions to compel arbitration in Scott Davis v. Stefan Kozak et al. and Scott Davis v. Red Bull North America, Inc., A156234 & A156238 (1/3  8/19/20) (Fujisaki, Siggins, Jackson), a consolidated appeal arising from an employee's lawsuit against […]

Arbitration, Enforceability: Fourth District, Div. 3 Holds That Temporary Conservators Could Not Be Held To Arbitrate

August 26, 2020 · Arbitration: Enforceability

Nursing Homes And Senior Living Facilities Continue To Generate Enforcement Of Arbitration Cases.     The Court of Appeal affirms denial of a motion to compel arbitration in Diane Holley v. Silverado Senior Living Management, Inc., et al, No. G058576 (4/3  8/7/20) (Moore, Bedsworth, Aronson).      Holley brought a suit individually, and as successor in interest against defendants […]

Arbitration, Nonsignatories: Failure To Initial Waiver Of Jury Is “Of No Legal Consequence” — Under The Circumstances

The Parties Failed To Initial The Jury Waiver, But They Did Sign A "Certification."         "What if neither party to an arbitration agreement places initials next to a jury waiver contained in the agreement, even though the drafter included lines for their initials?" That's the question presented in Martinez v. BaronHR, Inc., et al, B296858 […]

Arbitration, PAGA, Waiver, Severability: Non-Severability Provision And PAGA Waiver Make Arbitration Provision Unenforceable

The Briefing Focused On A "Blow-Up" Provision, But The Court Focused On An Unenforceable Waiver Of PAGA Claims And Lack Of Severability.       "Six-year-old Gregorio Drozco III does what a lot of people do in a Seattle, Washington, alley when he blows a bubble, preparatory to wadding up his gum and sticking it to […]