As we recently advised you , on September 9, 2019, the Ninth Circuit ordered the plaintiffs in the Blair v. Rent-A-Center appeals to respond to the defendants’ petitions for rehearing, which ask the court en banc to overturn a panel decision holding that the Federal Arbitration Act (FAA) does not preempt the California Supreme Court’s McGill Rule. Under the McGill Rule, an arbitration agreement that precludes a consumer from pursuing claims for “public” injunctive relief in court or in arbitration is unenforceable under California law.
By way of update, the plaintiffs filed their responses on September 30, 2019. Contrary to the arguments of the defendants and their amici curiae, plaintiffs argue that there is no preemption because the Blair Rule does not discriminate against arbitration or interfere with any of the fundamental attributes of arbitration.
We will update you again when the Ninth Circuit rules on the rehearing petitions, which we expect to happen in the near future.