The U.S. Department of Education recently announced proposed regulations designed to expand and improve the major student loan discharge programs authorized by the Higher Education Act. Among other things, the proposed regulations would prohibit institutions that participate in the Federal Direct Loan program from requiring borrowers to sign mandatory pre-dispute arbitration agreements or class-action waivers.
FAA
U.S. Supreme Court Ruling Denies Arbitration, Ramps Up Litigation
By Mark J. Levin & Steven W. Suflas on
Posted in Arbitration, Litigation and Court Decisions
For the second time in two weeks, the U.S. Supreme Court has ruled against a company seeking to compel individual arbitration of Fair Labor Standards Act (FLSA) collective action claims. In Southwest Airlines Co. v. Saxon, the Court held that the plaintiff’s claims were exempt from arbitration under Section 1 of the Federal Arbitration…
U.S. Supreme Court rejects prejudice requirement for waiver of arbitration
By Mark J. Levin on
Posted in Arbitration, Litigation and Court Decisions
The U.S. Supreme Court today held that waiver of the right to arbitrate does not require a showing that the other party was prejudiced. The unanimous opinion by Justice Kagan in Morgan v. Sundance reversed the Eighth Circuit, which had held that a party waives the right to arbitrate if it knew of the right…
This week’s podcast: A deep dive into mass arbitration: Part I, with special guest Maria Glover, Professor of Law at Georgetown University Law Center
By Barbara S. Mishkin on
Posted in Arbitration
Prof. Glover is the author of the first major academic study of mass arbitration, which is soon to be published as a law review article. In Part I of this two-part podcast, after reviewing the historical background of the Federal Arbitration Act, key SCOTUS arbitration decisions, and the evolution of mass arbitration, Prof. Glover discusses…
Petitioners in FAA Preemption Case Receive Support of Industry Groups in Brief filed by Ballard Spahr with Supreme Court
By Alan S. Kaplinsky on
On June 11, the American Bankers Association and the Consumer Bankers Association, represented by Ballard Spahr, filed an amicus brief in support of a petition for certiorari asking the Supreme Court to review the Ninth Circuit’s ruling in HRB Tax Group, Inc. v. Snarr that the Federal Arbitration Act (FAA) does not preempt California’s McGill…
Supreme Court Agrees to Decide Arbitration Issue (But Not the Expected One)
By Alan S. Kaplinsky on
Posted in Arbitration, Litigation and Court Decisions
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…
FAA Preemption Petitions Now Ripe for SCOTUS Conference
By Alan S. Kaplinsky on
Posted in Arbitration, Litigation and Court Decisions
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”…
Petitioners in FAA Preemption Cases Receive Support of Industry Groups in Brief filed by Ballard Spahr with Supreme Court
By Alan S. Kaplinsky on
On March 26, the American Bankers Association and the Consumer Bankers Association, represented by Ballard Spahr, filed an amicus brief in support of petitions for certiorari asking the Supreme Court to review the Ninth Circuit’s rulings in the Blair v. Rent-A-Center appeals that the Federal Arbitration Act (FAA) does not preempt California’s McGill rule. The…
Possible Supreme Court Review of California’s “McGill Rule” Moves One Step Closer as Ninth Circuit Stays Mandates in Blair Appeals
By Mark J. Levin on
Posted in Arbitration, Regulatory and Enforcement
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…
Ninth Circuit Orders Plaintiffs to File Responses to Blair Rehearing Petitions
By Mark J. Levin on
Posted in Arbitration, Litigation and Court Decisions
We recently posted a discussion concerning the petitions for rehearing filed in the Blair v. Rent-A-Center appeals pending in the Ninth Circuit which raise the issue of whether the Federal Arbitration Act preempts California’s McGill Rule. The McGill Rule derives from the California Supreme Court’s ruling in McGill v. Citibank, N.A. that an arbitration agreement…