Category: Arbitration: Federal Arbitration Act

Arbitration/FAA Preemption: Justice Gilbert Answers Question of Federal Arbitration Act Preemption

It All Depends      Justice Gilbert addresses the issue of when federal preemption applies in consolidated appeals of Mastick v. TD Ameritrade, Inc. and Mastick v. Oakwood Capital Management, Inc., LLC, Nos. B237475 and B238070 (2nd Dist. Div. 6 October 9, 2012) (published).  “We answer the question when it does with judges’ and lawyers’ habitual, […]

Arbitration/Class Action/Waiver/Employment: 4th District Division 1 Endorses De-Gentrification But Concludes That Gentry v. Superior Court Is Stare Decisis In California – For Now

At Issue for Employers and Employees:  Classwide Arbitration or Individual Arbitration?      In an April 25, 2012 post, we said the rule in Gentry v. Superior Court, 42 Cal.4th 443 (2007), allowing for invalidation of a class arbitration waiver where nonwaivable statutory rights are at issue, manages to maintain a “toehold”.  We suggested Gentry, like […]

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/Federal Arbitration Act: Ninth Circuit Affirms District Court’s Decision Affirming Denial of Motion to Compel Arbitration Where Conflict Existed Between Dischargeability Purpose of Bankruptcy Code and Arbitration

How to Reconcile the Federal Arbitration Act With the Bankruptcy Code?      The threshold issue that the Ninth Circuit had to resolve In the Matter of:  Jose Eber, Case Nos. 10-56772 and 11-55341 (9th Cir. July 9, 2012) (for publication) was “how to reconcile the FAA with the Bankruptcy Code, and, more specifically, a bankruptcy […]

Arbitration/FAA/Waiver/Employment: Fourth District, Div. 2, Affirms Denial of Petition to Arbitrate in Area of the Law It Describes as “Fluid and Volatile”

Split of Opinion Continues About Arbitrability of State Statutory Labor Claims “Once more unto the breach, dear friends, once more.” (Henry V, Act 3, Scene 1).      Hoover v. American Income Life Insurance Company, Case No. E052864 (4th Dist. Div. 2 May 16, 2012) (Codrington, J., author) (certified for publication) underscores a split in the […]

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/Enforceability/FAA/Construction: Arbitration Clause That The Employer Can Change Turns Out To Be Illusory

  Problem Here: Modification Provision Was Not Sufficiently Restricted So As To Exempt All Employee Claims, Accrued Or Known, From A Contract Change      Magician, Illusionist, Entertainer.  1913.  Library of Congress.      The next case takes us back to law school days:  is a contract illusory?  The case required the Court of Appeal to determine […]

Arbitration: Third District Rules That FAA Does Not Preempt California Arbitration Statute Allowing for Denial of Arbitration Where There Is Possibility of Conflicting Rulings

  Elder Abuse of Parent and Emotional Distress of Daughter Set Up Possibility of Conflicting Rulings      The trial court denied motions of operators of skilled care nursing facilities to compel arbitration of parent’s Elder Abuse claim that was subject to arbitration. Why? Because the daughter’s claim of emotional distress caused by her mother’s alleged […]

Arbitration/FAA: Two Recent Supreme Court Cases Apply FAA And Uphold Arbitration Agreements

  CompuCredit Corporation v. Greenwood Upholds Right To Arbitrate Credit Repair Organizations Act Claims.      Pursuant to the Opinion of the Supreme Court in CompuCredit Corp. v. Greenwood, 565 U.S. ___, 132 S.Ct. 665 (2012), the Ninth Circuit today vacated the district court’s decision denying defendants’ motion co compel arbitration. Greenwood v. CompuCredit Corp., No. […]