News & Analysis as of

Arbitration Mandatory Arbitration Clauses Consumer Contracts

Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties... more +
Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties to arbitration agree in advance to be bound by the arbitrator's decision. Arbitration is an alternative to litigation, but it shares many of the familiar features of litigation. Namely, parties to arbitration hold hearings before neutral decision-makers, present evidence and argue the merits of their position. Parties often choose arbitration due to its perceived advantages over litigation. Those perceived advantages include greater efficiency and flexibility, and lower costs. less -
BCLP

Is Your Company Vulnerable to a Mass Arbitration Attack? What It is and How to Prevent It

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A recent trend in litigation has emerged that is causing companies to re-think conventional wisdom. Until now, it has been a widely adopted best practice for retailers and other consumer-facing companies to include mandatory...more

Benesch

Examining The Arbitration Clause Landscape Amid Risks

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For more than a decade, companies have benefited immensely from the U.S. Supreme Court's 2011 decision of AT&T Mobility LLC v. Concepcion, which upheld a company's right to compel consumers into participating in individual...more

Lathrop GPM

California Appellate Court Rules that Customer Agreed to Franchisor’s Arbitration Requirement in “Clickwrap” Agreement

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A state appellate court in California reversed a superior court’s denial of a massage franchisor’s motion to compel arbitration. Jane Doe #1 (I.G.) v. Massage Envy Franchising, LLC, 2023 WL 8801517 (Cal. Ct. App. Dec. 20,...more

Benesch

DCD Compels Arbitration for TCPA Class Action Despite Being Non-Signatory to Agreement

Benesch on

The District of Massachusetts’s recent decision in Fairfield v. DCD Auto. Holdings, Inc., No. 22-cv-11977, 2023 U.S. Dist. LEXIS 109463 (D. Mass. June 26, 2023) serves as a key reminder for businesses not only to have...more

Cadwalader, Wickersham & Taft LLP

CFPB Issues Proposed Rule on Form Contracts

The Consumer Financial Protection Bureau (“CFPB”) issued a proposed rule last week addressing the “Registry of Supervised Nonbanks that Use Form Contracts to Impose Terms and Conditions that Seek to Waive or Limit Consumer...more

Burns & Levinson LLP

Learn From Uber’s Miscues to Ensure Your Electronic Agreement Is Enforceable

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As discussed in a blog post last year, Uber learned the hard way that with online agreements, it can take more than a simple provision stating “all disputes must be arbitrated” to ensure that your customers cannot sue you in...more

Steptoe & Johnson PLLC

Pennsylvania Appellate Court Invalidates Online Arbitration Clause in Hyperlinked 'Terms and Conditions'

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The Pennsylvania Superior Court recently invalidated Uber’s use of a mandatory arbitration clause in an online registration page for customers, ruling that the arbitration clause was unenforceable because it did not clearly...more

Carlton Fields

Eleventh Circuit Affirms Order Compelling Arbitration of Cruise Liner Class Action

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Plaintiffs filed a putative class action against Norwegian Cruise Lines claiming that Norwegian failed to disclose profits it earned when the plaintiffs elected to purchase travel insurance during the cruise booking process....more

Sheppard Mullin Richter & Hampton LLP

An Arbitration Clause Health Check

Arbitration clauses with class action waivers remain one of the most effective tools that consumer-facing companies can employ to fend off consumer class action litigation. Yet many companies stumble both in getting their...more

Ervin Cohen & Jessup LLP

SB 707: California Continues to Attack Arbitration Agreements

Ervin Cohen & Jessup LLP on

Although popular with employers as a method to expedite the resolution of disputes and reduce costs, arbitration is unpopular with plaintiff’s lawyers and, apparently, the California Legislature. As we wrote about here,...more

Womble Bond Dickinson

Court enforces Arbitration Clause in Clickwrap Agreement of “Ganjapreneur” App

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A California Court granted Defendant’s motion to compel arbitration based on a duly formed and consented arbitration clause via a “clickwrap” agreement, despite Plaintiff’s argument that no contract was ever formed because...more

Ballard Spahr LLP

House passes bill to ban mandatory arbitration agreements; White House threatens veto

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This past Friday, by a vote of 225-186, the House passed H.R. 1423, the “Forced Arbitration Injustice Repeal Act.”  A Senate companion bill (S. 610) was introduced in February 2019 and referred to the Senate Judiciary...more

Carlton Fields

District of Connecticut Enforces Amex Arbitration Clause Where Cardmember Did Not “Opt Out”

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In a dispute involving fraudulent charges, the District of Connecticut required American Express and the cardmember to resolve their issue in arbitration, pursuant to the cardmember agreement, as amended. AmEx provided notice...more

Faegre Drinker Biddle & Reath LLP

By Clicking Continue . . .

The Northern District of Illinois recently denied a motion to compel arbitration in a putative class action, and in doing so found that the defendants failed to show that the plaintiff had agreed to arbitrate the dispute when...more

Carlton Fields

California Federal Court Enforces Arbitration Provision in Uber Agreements

Carlton Fields on

A class action alleging unsolicited text messages received from Uber violated the Telephone Consumer Protection Act (TCPA) and California competition law was sent to arbitration by a California federal court based upon an...more

Mintz - Arbitration, Mediation, ADR...

Does the Physical or Mental Impairment of a Party Make An Arbitration Agreement Voidable?

For an arbitration agreement to be enforceable, the parties must have a reasonable opportunity to understand its terms. See Fagerstrom v. Amazon.com, Inc., 141 F. Supp. 3d 1070 (S.D. Cal. 2015). With this principle in mind,...more

Genova Burns LLC

New Jersey Supreme Court Rules Mis-Labeled Arbitration Provision in Consumer Contract Unenforceable

Genova Burns LLC on

A day after the U.S. Supreme Court issued a decision seen as pro-arbitration – see our January 10, 2019 Blog Post, Arbitrator to Decide Whether Dispute is Subject to Arbitration Even if Argument is “Wholly Groundless,”...more

Blank Rome LLP

New Jersey Supreme Court Weighs in on Arbitration Clauses in Consumer Contracts

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On January 10, 2018, the New Jersey Supreme Court decided a case involving the enforceability of mandatory arbitration agreements in consumer contracts. In Kernahan v. Home Warranty Administrator of Florida, the Court held...more

Carlton Fields

Eighth Circuit Finds All Claims Involving Consumer Credit Dispute Subject To Arbitration

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A federal court in Minnesota determined that three of Plaintiffs’ claims were not subject to the applicable arbitration clause: (1) state-law usury claims; (2) state and federal financial disclosure claims; and (3) state-law...more

Carlton Fields

First Circuit Holds Online Mandatory Arbitration Agreement Is Unenforceable

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The First Circuit recently held that an arbitration clause contained in the online contract of the ride sharing app, Uber Technologies, Inc., is unenforceable under Massachusetts law. ...more

Seyfarth Shaw LLP

First Circuit Invalidates Arbitration Clause In Uber’s User Agreement

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Executive Summary and Takeaway. User agreements for websites and apps have become increasingly prevalent in recent years, and courts have had to adapt traditional rules of contract interpretation to the new digital frontier....more

Ballard Spahr LLP

Online Arbitration Agreement Must Be “Reasonably Communicated and Accepted”

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Ruling in a class action brought against Uber Technologies, Inc., the U.S. Court of Appeals for the First Circuit recently held that the company's arbitration clause could not be enforced because it was not "reasonably...more

Proskauer - New Media & Technology

New York State Court Declines to Compel Arbitration, Cites Purported Ambiguities in Mobile Contracting Process

Courts are increasingly taking a magnifying glass to electronic contracting processes, particularly how the presentation of the terms of service and call to action are displayed. As such, companies might take a second look at...more

Stoel Rives - Renewable + Law

Arbitration Clauses in Solar Contracts

This month, a panel of the New Jersey Superior Court, Appellate Division, ruled that a proposed class action brought by customers of a solar energy company was subject to arbitration. The case, Brian and Ananis Griffoul v....more

Downs Rachlin Martin PLLC

Vermont Legislative Update 1-5-18 - An analysis from DRM's Government & Public Affairs Team

The merger between the Department of Labor and the Agency of Commerce and Community Development as proposed by the Scott Administration is off the table, but work that was spawned by consideration of the idea has gathered...more

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