As reported in Public Citizen’s Consumer Law & Policy Blog, the Pennsylvania Supreme Court recently agreed to review Chilutti v. Uber Technologies, Inc., in which a divided panel of the Pennsylvania Superior Court (and later the Superior Court en banc) held that courts must apply a “stricter burden of proof” when asked to enforce an arbitration agreement in a company’s online terms and conditions because arbitration waives the constitutional right to a jury trial.… Continue Reading
arbitration agreement
BNA Report: CFPB Review of Consumer Arbitration Agreements Is “on Table”
We recently wrote about a Law 360 report indicating that the CFPB appears unlikely, at least in the near future, to undertake new rulemaking that would regulate the use of consumer arbitration agreements. The report was based on comments made by CFPB Director Rohit Chopra at a virtual meeting organized by Public Justice. … Continue Reading
Professor Sovern’s opt-in arbitration proposal is neither new nor supportable
Professor Jeff Sovern recently proposed that the CFPB issue a supposedly “new” arbitration rule “that prevents companies from blocking consumers from suing in court unless consumers specifically opted in to the arbitration clause” after being given a CFPB-mandated disclosure that if they do not sign and their rights are violated, they “may still sue us in court or later agree to arbitration.” … Continue Reading
House Judiciary Subcommittee Hears Testimony on Arbitration Agreements
A subcommittee of the House Judiciary Committee recently held a hearing titled “Justice Denied: Forced Arbitration and the Erosion of our Legal System.” This hearing, which followed an April 2 hearing at which Alan Kaplinsky testified on “Arbitration in America” before the Senate Judiciary Committee, was held in conjunction with several legislative proposals regarding arbitration that are pending in the House of Representatives.… Continue Reading
Consumer Advocates’ Proposed “Arbitration Multiplier” Is a Wolf in Sheep’s Clothing
According to a forthcoming article by Professors Andrea Chandrasekher and David Horton in the California Law Review, more consumers and their lawyers would take advantage of individual arbitration if states enacted non-waivable statutes allowing an arbitrator who awards a prevailing consumer fees and expenses under a fee-shifting statute to augment the award with an extra “bounty” for winning the arbitration. … Continue Reading
State of Washington Executive Order May Be Preempted by FAA
An Executive Order issued by Washington Governor Jay Inslee on June 12, 2018 seeks to rebuff the U.S. Supreme Court’s ruling in Epic Systems LLC v. Lewis, 138 S. Ct. 1612 (May 21, 2018), by implementing new state procurement procedures that overtly discriminate against companies whose employment agreements contain arbitration provisions with class action waivers. … Continue Reading