News & Analysis as of

Mandatory Arbitration Clauses Arbitration Unconscionable Contracts

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Appeals Court Finds Employer’s Arbitration Agreement With Cost-Sharing and Out-of-State Law Provisions Unconscionable

In a recent ruling, a California appeals court found an arbitration agreement with an eyewear store employee that was presented on a take-it-or-leave-it basis required an arbitrator to apply the laws of another state,...more

Seyfarth Shaw LLP

Mandatory Arbitration Provision Struck Down by the Washington Supreme Court

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Seyfarth Synopsis: The Washington Supreme Court refused to enforce a mandatory arbitration agreement that was contained within an Employee Handbook. ...more

Carlton Fields

Court Compels Arbitration With Respect to Insurers, Not Brokers

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The U.S. District Court for the Southern District of Texas recently compelled arbitration against insurers but not brokers related to a commercial insurance dispute....more

Skadden, Arps, Slate, Meagher & Flom LLP

Court of Chancery Dismisses Consent and Unconscionability Claims Challenging Contract Between Parent and Wholly Owned Subsidiary

On March 30, 2020, in The Chemours Company v. DowDuPont Inc., et al., C.A. No. 2019-0351-SG (Del. Ch. Mar. 30, 2020), the Delaware Court of Chancery issued an important decision reaffirming bedrock principles of Delaware...more

Carlton Fields

Eighth Circuit Rejects Claim That Arbitration Clause in Retainer Was Unconscionable

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The Eight Circuit has rejected a plaintiff’s claim that an arbitration clause in a retainer agreement she signed with a law firm after receiving a call from a purported agent of the firm informing her of a purported...more

Fisher Phillips

Supreme Court’s Decision Not To Review California’s Arbitration Framework Means We Have A Roadmap For Compliance

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The U.S. Supreme Court just did something that was more than just a bit out of character—it rejected the opportunity to find that California had once again overstepped its bounds by creating judicial rules disfavoring...more

Ballard Spahr LLP

Small business borrowers bring lawsuit alleging lender engaged in “rent-a-charter” scheme to make usurious loans

Ballard Spahr LLP on

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”...more

Carlton Fields

Court Compels Arbitration Based on Text Message Agreement

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A district court has granted a motion to compel arbitration based on an arbitration clause in an agreement sent via text message and agreed to via a reply text. ...more

Carlton Fields

Alabama District Court Enforces Arbitration Clause Related to Disability Policy Over Unconscionability Claim

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The U.S. District Court for the Northern District of Alabama has compelled arbitration despite a former employee’s claim that the arbitration clause in the policy at issue was unconscionable under the circumstances related to...more

Hogan Lovells

California Appellate Courts Diverge on Arbitration Agreements

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Two California Courts of Appeal came to two different conclusions on motions to compel arbitration on the same day last week (April 10), again demonstrating the care that must be taken in drafting and presenting arbitration...more

Carlton Fields

Case Alleging That Barnes & Noble Wrongfully Shared Customer Information With Facebook Ordered To Arbitration

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Plaintiff filed a class action against Barnes & Noble in the Southern District of New York, alleging that it violated her privacy by sharing information about her purchases with Facebook. Barnes & Noble moved to compel...more

Carlton Fields

Ninth Circuit Affirms Application Of Arbitration Clause Found In Amazon’s Conditions Of Use

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Applying Washington law, the Ninth Circuit Court of Appeals affirmed a California federal court’s ruling that Amazon’s Conditions of Use (COU) created a valid contract between Amazon and its customers, and there was no...more

Carlton Fields

New Jersey Court Compels Arbitration, Declines To Appoint Substitute Arbitrator Despite “Exorbitant” Administrative Fee

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Terra Finance LLC brought an action to compel arbitration. Defendant Acrow Corporation moved to dismiss the action under Fed. R. Civ. P. 12(b)(6), arguing that the arbitration clause was unconscionable, and therefore...more

Foley & Lardner LLP

The Supreme Court Preview, Part II: Tuning Up Arbitration Clauses

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This is the second post in our series “The Supreme Court Preview,” - California state and federal courts have a rocky history with the U.S. Supreme Court, as the highest court in the land has repeatedly reversed the...more

Parker Poe Adams & Bernstein LLP

Supreme Court Agrees to Review California Rule Invalidating Contractor Arbitration Agreements

On October 1, the U.S. Supreme Court agreed to hear the appeal of a company whose mandatory arbitration agreements with its contractors were deemed invalid by California state courts. Once again, the Court will determine...more

Carlton Fields

Tennessee Supreme Court Holds That State Unconscionability Law Does Not Implicate Concepcion And Is Not Preempted By FAA

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The Supreme Court of Tennessee reversed the lower courts’ rulings that a non-mutual arbitration provision in an installment contract on the sale of a manufactured home was unconscionable and unenforceable. In doing so,...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Missouri Supreme Court “Calls an Audible,” Upholds Arbitration Agreement

In recent years, Missouri courts have seemed reluctant to enforce arbitration agreements entered into between employers and employees. But in a recent decision, the Missouri Supreme Court reversed that trend and compelled...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Which Arbitration Agreement Clauses Will Texas Courts Find Unconscionable?

In recent years, courts have consistently supported employers’ use of arbitration agreements in employment settings. During the last few terms, the Supreme Court of the United States has issued several decisions, such as...more

Poyner Spruill LLP

What's In A Word? N.C. Court of Appeals Invalidates Nursing Home Arbitration Clause Based on Language of the Agreement

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Many nursing homes and assisted living communities commonly include arbitration agreements as part of their admission agreement and documents. Typically, these agreements require residents or their legal surrogates to...more

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