The First Circuit just faced a fascinating formation issue: if a customer cannot see what she is signing, and no employee reads it to her or ensures she knows there are legal terms, is there a contract? With Justice Souter sitting by designation on the panel, the court answered “no,” and thereby kept a class
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Uber Enforces Arbitration Due To Delegation Clause And Opt Out
The 9th Circuit’s decision to enforce the arbitration agreement in Uber’s agreements with drivers made lots of news last week. And although it includes no new principles of law, it does emphasize some principles that come up regularly in consumer and employment arbitration, so it’s worth reviewing the details.
Former drivers brought an action in…
Missouri Declares It Unconscionable For NFL Commissioner to Arbitrate Employment Dispute
The Supreme Court of Missouri has issued two significant arbitration decisions in recent weeks, showing its willingness to sever any aspects of an arbitration agreement that it finds unconscionable (while enforcing the overall obligation to arbitrate).
First, in a contentious decision, the Supreme Court of Missouri found that a former employee of the St. Louis…
Second Federal Circuit Court Refuses To Enforce Arbitration By South Dakota Tribe
Using a different analysis, but reaching the same result as a recent decision from the Seventh Circuit, the Eleventh Circuit agreed that a defendant could not compel arbitration of consumer claims before the Cheyenne River Sioux Tribal Nation in South Dakota. Inetianbor v. CashCall, __ F.3d__, 2014 WL 4922225 (11th Cir. Oct.…
End Of The World As We Know It (for Employment Arbitration)?
Cue the R.E.M folks, because the Supreme Court of Missouri issued a 4-3 opinion recently that appears to upend many employment arbitration agreements in that state. Baker v. Bristol Care, Inc., __ S.W.3d__, 2014 WL 4086378 (Mo. Aug. 19, 2014). However, the situation is not as dire as it may seem.
The high court…
The Preemption Club
California is the Judd Nelson of The Preemption Club. (Or the John Bender, if you prefer using character names.) The Supreme Court has sent the California courts to preemption detention for ignoring the Federal Arbitration Act in blockbuster, groundbreaking cases (see Concepcion). But California cannot help itself. It keeps coming up with novel arguments…
3d Circuit Says Delaware Can't Have Secret Arbitrations By Judges
The Third Circuit ruled last week that Delaware’s Chancery Court could not offer its judges’ services as neutral arbitrators in its courtrooms, unless those arbitrations were open to the public.
In 2009, the Delaware courts decided to provide arbitration. The state amended its laws to create an arbitration process that was only open to disputes…
Illusoriness Gains In Popularity As An Arbitration Buster
You hear more about Lena Dunham than you expect, given the audience for “Girls”, right? (Read this article for more.) The same is true, or should be true, for the contract defense of illusoriness. After decades of disuse, it is popping up more and more often as a defense to the enforcement of arbitration clauses…
The Next Frontier of Arbitration Litigation: Lessons From State Courts
After reading more than 40 decisions about arbitration from state high courts, issued just in the past eight months, I have two bits of wisdom to share. First, that is not the best way to spend your summer vacation, even for a devoted arbitration nerd. And second, there are arbitration issues percolating in state courts…
Individual arbitration is plaintiff's "only remedy, illusory or not" — Third Circuit
The earthquake that was the Concepcion decision (in April of 2011) is still sending aftershocks throughout the judicial system. In last week’s ruling, the Third Circuit compelled individual arbitration in Homa v. American Express Co., 2012 WL 3594231(3d Cir. Aug. 22, 2012), a case in which the parties have been fighting about whether the plaintiff…