Proposed legislation now working its way through the New Jersey Senate would eliminate the eligibility of postsecondary students and other individuals for State student assistance, training and employment services, including grants, scholarships and loans, if the school or training provider requires students to sign enrollment contracts that include “forced arbitration and other restrictive clauses, including

After a recap of industry’s successful history in defeating challenges to the use of arbitration agreements to limit class action exposure, we discuss the threat of individual public injunctive relief claims to the use of arbitration resulting from recent California and Ninth Circuit decisions, efforts to distinguish such claims from claims for other relief, drafting

On June 15, 2020, the U.S. Supreme Court granted certiorari in Henry Schein, Inc. v. Archer and White Sales, Inc. to decide a question that has divided the federal circuit courts and state supreme courts: “whether a provision in an arbitration agreement that exempts certain claims from arbitration negates an other­wise clear and unmistakable delegation

Briefing is now complete on the petitions for certiorari in the Blair v. Rent-A-Center appeals that could produce the next blockbuster U.S. Supreme Court arbitration decision. At issue is whether the Federal Arbitration Act (FAA) preempts California’s McGill Rule. Under the McGill Rule, an arbitration agreement that precludes a consumer from pursuing claims for “public”

After denying the defendants’ petitions for panel and en banc rehearing in the Blair v. Rent-a-Center appeals, the Ninth Circuit has granted their motions to stay the issuance of the Court’s mandates for 90 days pending the filing of petitions for certiorari with the U.S. Supreme Court. If petitions for certiorari are filed, the stays

On January 17, 2020, the Ninth Circuit denied the defendants’ petitions for panel and en banc rehearing in the Blair v. Rent a Center appeals, setting the stage for possible U.S. Supreme Court review of the California Supreme Court’s McGill Rule.  Under the McGill Rule, an arbitration agreement that precludes a consumer from pursuing claims

A group of small businesses and their individual owners have filed a putative class action lawsuit in a New York federal district court against online lender Kabbage, Inc. that alleges Kabbage engaged in a “rent-a-charter” scheme to make loans at interest rates that were usurious under state law.

According to the complaint, Kabbage entered

In this podcast, we look at the current state of consumer arbitration law, discuss recent CA state and federal court decisions involving the enforceability of arbitration agreements with respect to requests for public injunctive relief, whether similar issues may arise in other states, the prospects for SCOTUS review, and the need to revisit arbitration agreements

The California Chamber of Commerce is encouraging its members to send letters to California Governor Gavin Newsom urging him to veto California SB 707, which was passed by the state’s Assembly and Senate and is currently sitting on his desk awaiting his signature.  The bill would amend the state’s existing law on arbitration agreements