Just in time for the Halloween season, the Oklahoma Supreme Court gives us a scary tale about buying a new car. In Sutton v. David Stanley Chevrolet, Inc., 2020 OK 87, ¶ 1 the Court finds that an arbitration clause in a consumer contract was induced by fraud because the structure of the transaction
I’m adding something new to our Blog experience, the ArbitrationNation Bookworm. Basically, once or twice a month, I’ll provide a brief overview of an article or book that readers of the Blog might find interesting. I’m also going to add a sidebar that includes other stuff that we’re reading related to arbitration.
For the inaugural
The CFPB today issued a consumer-friendly rule that is likely to significantly curtail the use of arbitration in consumer financial agreements. That rule has two major components. First, it prohibits institutions from relying on arbitration clauses to avoid class actions. And second, it mandates the submission of redacted data on consumer financial arbitrations that will
Now that Justice Gorsuch is confirmed and can take the open seat on the Supreme Court, maybe SCOTUS can move forward on the cases about whether employers can make employees waive their right to class actions in an arbitration agreement. (Btw, here’s a nice SCOTUSblog piece on Gorsuch’s arbitration decisions.) In the meantime, California’s
If I had drafted this annual summary post on November 7, 2016, it would have looked different. At that point, the year had produced numerous (final or proposed) federal regulations that significantly restricted the use of arbitration with consumers in large industries. In addition, Justice Scalia’s death, along with the prospective election of Secretary Clinton,
Richard Cordray, Director of the Consumer Financial Protection Bureau, has positioned himself as the Boogeyman that financial companies fear this Halloween season. Earlier this month, the CFPB outlined the proposals under consideration for regulating arbitration in the consumer financial industry. The proposals address the availability of class actions — as was widely expected — but
Two state supreme courts found consumer arbitration agreements unenforceable in the past week: Arkansas and New Jersey. Arkansas grounded its decision on the lack of mutuality in the consumer arbitration agreement (similar to Missouri’s recent ruling). Alltel Corp. v. Rosenow, 2014 WL 4656609 (Ark. Sept. 18, 2014). New Jersey grounded its decision on