With its recent decision in Coinbase Inc. v. Suski, the U.S. Supreme Court held that when parties have agreed to two separate contracts, one sending arbitrability disputes to arbitration and the other sending arbitrability disputes to the courts, the courts must decide which contract governs. Suski involved a class action lawsuit against Coinbase Inc., a cryptocurrency trading platform. The plaintiffs in the suit were several participants in a sweepstakes hosted by ... Keep Reading »
Arbitration Class Action Articles
The latest class action developments and trends in arbitration, including news, key cases, and strategies.
Delivery in 30 Minutes or Less: Supreme Court Punts on Who Qualifies Under FAA Exemption for Interstate Commerce Workers
In Domino’s Pizza LLC v. Carmona, Domino’s petitioned the U.S. Supreme Court to clarify whether drivers making only in-state deliveries of goods, ordered by in-state customers from an in-state warehouse, engaged in interstate or foreign commerce, exempting them from arbitration under Section 1 of the Federal Arbitration Act. The Supreme Court on October 17, 2022, granted Domino’s petition for certiorari, vacated the Ninth Circuit’s ruling allowing the drivers to ... Keep Reading »
Eleventh Circuit Affirms Class Certification and Settlement in “Factually Peculiar” In re Checking Account Overdraft Litigation Saga
Twelve years after it started, the saga of RBC Bank’s alleged improper assessment and collection of overdraft fees appears to have come to an end. In affirming the district court's certification of the class and approval of a settlement, the Eleventh Circuit Court of Appeals reaffirmed that “typicality” under Federal Rule of Civil Procedure 23 does not require identical claims or defenses and that only a substantial conflict of interest can destroy adequacy of a class ... Keep Reading »
PAGA Claims Sent Down the River: Supreme Court Gives California Employers Major Victory in Viking Cruises Arbitration Case
Representative actions brought under California’s Private Attorneys General Act (PAGA) have been the bane of that state’s labor lawyers’ existence since PAGA’s enactment in 2004. Thanks to this week’s Supreme Court decision in Viking River Cruises, Inc. v. Moriana, forward-thinking clients can say goodbye to all that. The PAGA Predicament PAGA enlists employees as private attorneys general to enforce California labor law. By its terms, PAGA authorizes an “aggrieved ... Keep Reading »
$91M in AAA Filing Fees? Another Lesson in Being Intentional in Drafting Class Action Waivers in Arbitration Agreements
We have blogged in the past about the importance of companies being intentional in drafting their arbitration agreements. It is important to think through such issues as: Should we include a class action waiver? Should we include a collective action waiver? Who decides the scope of arbitration and interprets the scope of such waiver provisions: a court or an arbitrator? How susceptible are we to massive numbers of repeat claims? I personally have been involved in a ... Keep Reading »
Eleventh Circuit Judge Suggests Substantive Canon of Interpretation Favoring Arbitration Conflicts With Textualism
This blog has occasionally advised corporate counsel to review their company's arbitration agreements for scope and clarity. This is another such warning. Simply put, buttoned-up contracts containing arbitration provisions (including class action waivers) prevent class action exposure. But as Sixt Rent A Car just found out, less carefully drafted provisions result in class action litigation in court. And as Judge Newsom warned in a concurrence to his own opinion, ... Keep Reading »
Authority Over Efficiency: District Court Lacks Authority To Rule On Arbitration Preemption Question In Remanded PAGA Action, Ninth Circuit Says
As a recent Ninth Circuit decision demonstrates, although substantial time, effort, and briefing may be spent litigating issues in a removed federal putative class action, parties should be prepared for a round two of their persuasion attempts in state court where the case is remanded to state court. In Echevarria v. Aerotek, Inc., a California district court remanded a representative action filed under California’s Private Attorneys General Act (PAGA) after finding ... Keep Reading »
Fifth Circuit Bars Notice of FLSA Collective Actions to Arbitration-Bound Employees
The Fifth Circuit recently became the first federal court of appeals to hold that employees who signed arbitration agreements should not receive notice of collective actions. This case of first impression among the courts of appeal could serve as a powerful tool for employers combatting collective actions under the Fair Labor Standards Act (FLSA). Accordingly, we think the decision is deserving of more detailed analysis than a mere summary. A Splintered Approach In ... Keep Reading »
Opt-Out Arbitration Program Binds Employees in Wage and Hour Class Action
A recent decision by a Wisconsin district court illustrates the impact of an arbitration agreement on class actions. The plaintiffs alleged violations of the Fair Labor Standards Act (FLSA) and state wage and overtime laws, claiming that employees were not compensated for 15 minutes of activity at the start of every workday and that actual pay was understated for purposes of calculating overtime. The defendants moved to compel arbitration on an individual basis. The ... Keep Reading »
Lights Out on Classwide Arbitration: The Supreme Court Rules in Lamps Plus That Ambiguity in Agreements Is Not Enough to Permit Classwide Arbitration
Recently, the Supreme Court extended its prior rulings looking skeptically at the idea of classwide arbitration, holding that even when an agreement is “ambiguous” about the availability of classwide arbitration, such arbitration is still barred. Nine years ago, in Stolt-Nielsen S.A. v. AnimalFeeds International Corp., 559 U.S. 662 (2010), the Court had ruled that classwide arbitration may not be compelled when an agreement is “silent” on the availability of such ... Keep Reading »
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