The Bankruptcy Court for the Southern District of New York has issued a lengthy opinion—a whopping 138 pages—holding that General Motors is largely immune from claims based on its pre-bankruptcy conduct, including claims involving faulty ignition switches. The bankruptcy proceedings resulted in the creation of a new company, General Motors LLC (“New GM”), which bought […]
Author Archives: Scott Nelson
The furor last spring over General Mills's attempt to require anyone who used its websites to arbitrate all claims against the company, which led to a highly publicized return to sanity by the company, hasn't deterred on-line retailers from using both "browsewrap" and "clickwrap" contract terms requiring arbitration of claims arising out of on-line transactions. […]
Public Citizen has released a report analyzing the impact of the U.S. Supreme Court’s decision in J. McIntyre Machinery Co. v. Nicastro, 131 S. Ct. 2780 (2011), on the ability of people injured by the products of out-of-state and foreign manufacturers to obtain access to the courts to remedy their injuries. Nicastro significantly limited the […]
In connection with its "Legal Reform Summit" last week, the U.S. Chamber of Commerce's Institute for Legal Reform issued a new paper written by John Beisner and his colleagues at Skadden Arps with new proposals for legislation to limit class actions and expand federal jurisdiction over both class actions and individual actions. Entitled A Roadmap for […]
Yesterday, consumers, employees, and others who are subject to mandatory arbitration agreements that inhibit their ability to present their claims got a big win and a big loss in the U.S. Court of Appeals for the Ninth Circuit—from the very same panel. The same three judges, Richard Clifton, Richard Tallman, and Consuelo Callahan, in cases argued […]
Yesterday, Judge Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia dismissed an action that claimed that the structure of the Consumer Financial Protection Bureau and the enforcement powers granted it violate separation-of-powers principles. The decision, in a case called Morgan Drexen v. CFPB, is here. The dismissal was on procedural grounds that […]
The Supreme Court today issued its opinion in American Express v. Italian Colors Restaurant. The Court holds, 5-3, in an opinion by Scalia, that an arbitration clause that bans class actions can be enforced under the Federal Arbitration Act even if the expense of individual arbitration makes it impossible to pursue a claim.
Brian's post below mentions the recent New York Times article about automakers' efforts to avail themselves of their dealers' arbitration agreements with customers, as well as the Ninth Circuit's decision in Kramer v. Toyota rejecting one such effort. Anyone interested in these subjects might also want to know that Toyota has filed a petition for a […]
A commenter on my post about the Massachusetts Supreme Judicial Court's decision in Feeney asked for an explanation in plain English. Here goes. The court decided that Massachusetts courts will not enforce an arbitration clause that bans class actions when a claim really cannot be pursued without a class action. For example, if the claim is […]
Consumer advocates have long been outraged by the phenomenon of "pay for delay" in the prescription drug business, whereby brand-name drug companies pay off potential generic competitors to stay out of the market. In return for the payments, the generics drop their challenges to the brand name companies' patents, and the brand name and generic […]