In July, the Ninth Circuit Court of Appeals held in Kilgore v. Key Bank that, in light of AT&T Mobility v. Concepcion, California law holding that claims for public injunctive relief are not subject to mandatory arbitration is preempted by the Federal Arbitration Act. The court held that the California rule does not survive Concepcion because the rule “prohibits outright the arbitration of a particular type of claim” (quoting Concepcion). The court also rejected arguments that the arbitration agreement at issue in the case is unconscionable.
On Friday, the Ninth Circuit granted the plainitffs' petition for rehearing en banc. The en banc oral argument will take place during the week of December 10, 2012.
