Category Archives: Arbitration

Car manufacturer cannot enforce customer’s arbitration agreement with dealers, says California Supreme Court

Yesterday, the California Supreme Court issued a unanimous opinion in Ford Motor Warranty Cases.  In each of the consolidated cases, plaintiffs who had purchased Ford vehicles sued Ford, alleging defects in the cars they purchased, violations of express and implied warranties, and fraudulent concealment. Ford moved to arbitrate on the grounds that the sales contracts between […]

Arbitration provider marks FAA’s 100th year

The arbitration firm JAMS posted a piece this week recognizing the 100th anniversary of the Federal Arbitration Act (FAA). Indeed, Congress passed the FAA in Feb. 1925 to facilitate resolution of business to business disputes, validating the ability of commercial parties of relatively equal bargaining power to agree in their contracts to resolve their disputes […]

Consumer suit charges American Arbitration Association with favoring businesses

So Bonnie Eslinger reports in Law360’s American Arbitration Assoc. Accused Of Pro-Corp. Monopoly. The plaintiffs claim violations of state and federal antitrust laws. Here are the first two paragraphs of the complaint: This case is about the predatorial behavior of an arbitration association in its attempt to race to the bottom of the barrel of […]

Horton study finds lawless arbitrators

David Horton of California, Davis has written Do Arbitrators Follow the Law? Evidence from Clause Construction, 126 Colum. L. Rev. Forum — (forthcoming 2025). Here’s the abstract: Courts and scholars have long disagreed about whether arbitrators follow the law. In the past three decades, the stakes in this debate have soared as the U.S. Supreme Court […]

Fourth Circuit holds Servicemembers Civil Relief Act does not protect against forced arbitration

Four former servicemembers brought a putative class action against Citibank, alleging that it was violating the Servicemembers Civil Relief Act (SCRA) by charging certain interest rates on their credit card balances. Citibank moved to compel arbitration pursuant to the terms of the relevant credit card account agreements, but the district court denied the motion, citing […]

David Horton article, Accidental Arbitration, discusses very broad arbitration clauses

David Horton of California, Davis has written Accidental Arbitration, 102 Wash. U. L. Rev. — (forthcoming 2025). Here’s the abstract: The Supreme Court’s muscular interpretation of the Federal Arbitration Act (FAA) has encouraged businesses to insert arbitration clauses in untold millions of contracts. However, this Article explores a subtler way in which arbitration’s kingdom is […]

NY High Court okays Uber “clickwrap” arbitration agreement

In September, I blogged about a Pennsylvania Supreme Court decision to review an intermediate appellate court decision holding that Uber’s “clickwrap” arbitration agreement was not enforceable under Pennsylvania law, as mutual assent was lacking based on the way it was presented to a user. Today, the New York Court of Appeals issued its own decision […]

Ninth Circuit holds FAA does not apply to mass arbitration provisions

Yesterday, the Ninth Circuit issued an opinion in Heckman v. Live Nation Entertainment, where it affirmed a district order denying a motion to compel mass  arbitration of a consumer antitrust class action about online ticket sales practices by Live Nation and Ticketmaster. Finding the arbitration agreement “borderline unintelligible,” the panel majority held that both the […]

Third Circuit Clarifies Standard for Discovery Into Arbitrability

In Guidotti v. Legal Helpers Debt Resolution, L.L.C., 716 F.3d 764 (3d Cir. 2013), the Third Circuit addressed the question of, when considering a motion to compel arbitration,  what standards district courts should apply when determining whether an agreement to arbitrate was actually formed between the parties. The court held that the Rule 12(b)(6) standard […]

Another arbitration provider heard matters in which it had a conflict

Remember how the National Arbitration Forum, also known as NAF, arbitrated disputes involving an affiliated debt collector? Well, the CFPB has banned another arbitration service provider, Ejudicate from consumer arbitrations for a variety of reasons, including that Ejudicate heard matters brought by a party with whom it had a financial relationship, Prehired Recruiting. The CFPB […]