Category: Arbitration: Waiver

Arbitration, Class, Waiver, FINRA: FINRA Rules Preventing Arbitration Of Class Actions Do Not Apply When There Is A Class Action Waiver

The Class Action Waiver Is Enforceable.          When a financial advisor brought a putative class action against Credit Suisse for deferred compensation, Credit Suisse moved successfully to dismiss based on an arbitration requirement in its Employee Dispute Resolution Program. The financial advisor appealed, arguing that Financial Industry Regulatory Authority (FINRA) rule Rule 13204(a)(4) barred arbitration […]

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, Landlord/Tenant, Waiver, Public Policy: Under California Law, Arbitration Clause In Residential Lease Is Void

Case Was Governed By State Law Rather  Than The Federal Arbitration Act.         The defendant landlord in Keisa Williams et al. v. 3620 W. 102nd Street, Inc., et al., B297824 (2/8  8/24/20) (Wiley, Grimes Stratton), did not discharge the burden of establishing that the residential lease at issue involved interstate commerce, and hence California state […]

Arbitration, Class, Waiver, Construction: Third District Holds Plaintiff Only Waived Right To Bring Class Action Lawsuit, Not Class Arbitration

Court Of Appeal Reverses Order Denying Motion To Compel Arbitration Of Class Claim.         In an employment dispute, the trial court denied plaintiff' Garner's ability to  pursue class action claims in arbitration, relying on "language in the arbitration agreement stating that Garner waived his right to participate in class action lawsuits." Chris Garner v. […]

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 […]

Arbitration, Waiver: Failure To Affirmatively Seek Stay And Move To Compel Arbitration Results In Waiver Of Right To Arbitrate

May 28, 2020 · Arbitration: Waiver

A party that wishes to pursue arbitration must take “ ‘active and decided steps to secure that right’ . . ."         Why? Because an arbitration agreement is not self-executing.          In Fleming Distribution Company v. Alfons Younan, A157038 (3/1  5/15/20) (Petrou, Fujisaki, Jackson), Defendant/Appellant Fleming appealed from a trial court order denying its […]

Arbitration, Waiver, Standard Of Review: Delay, Substantial Invocation Of Litigation Machinery, And Prejudice Result In Waiver Of Right To Arbitrate

Was Delay In Requesting Arbitration Simply A "Strategic Convenience" For Defendants?     Spracher v. Paul M. Zagaris, Inc. [Zagaris], and Higashi v. Disclosure Source, A1952941, A152962 (1/3   9/17/19) (Petrou, Siggins, Fujisaki), is a consolidated appeal brought by defendants in a class action in which plaintiffs alleged that defendants schemed to defraud plaintiffs. Plaintiffs were […]

Arbitration, Waiver: Employer Waived Right To Compel Arbitration Under A Collective Bargaining Agreement

Trial Court's Ruling That Delay And Prejudice Resulted In Waiver Is Affirmed.             Nunez v. Nevell Group, Inc., G056585 (4/3  5/2/19) (Fybel, Bedsworth, Goethals), addresses an employer's waiver of right to compel arbitration of violations of a wage order under a Collective Bargaining Agreement. The Court affirms the trial court's order denying the […]