Arbitration

US Appeals Court Rules Against EY’s Use of Class Action Wavers

The 9th U.S. Circuit Court of Appeals in San Francisco ruled 2-1 against EY, making it the second appellate court to support the NLRB’s position that federal labor law prohibits workers’ arbitration agreements from including class action waivers. On the other hand, two appellate courts have rejected the NLRB’s view, making it likely that the U.S. Supreme Court will …


Ninth Circuit Invalidates Class Waiver in Arbitration Agreement

In a ruling that widens the divide between federal appellate courts, the Ninth Circuit sided today with the Seventh Circuit and the National Labor Relations Board (“NLRB”) in holding that the class action waiver provision of a company’s arbitration agreement with employees violates the National Labor Relations Act (“NLRA”). Prior to this decision, the Seventh Circuit was alone in its dissention …


When Banks Play Unfairly, Consumers Want Chance to Be Heard in Court

The vast majority of consumers want to know they can seek their day in court if they get in a beef with a bank. That’s the main takeaway of a report last week from the Pew Charitable Trusts, which examined so-called mandatory arbitration clauses in bank contracts. These are the provisions that say you can’t sue or join a class-action lawsuit, and if you want to settle a dispute, you have to …


Op-Ed: Consumers Have a Right to Go to Court

Some of the fine print on bank account, credit card, and loan forms may soon get a rewrite that restores legal rights millions of Americans unknowingly waive when they swipe a piece of plastic or borrow money. Monday is the deadline for public comment on a federal Consumer Financial Protection Bureau proposal to curb so-called “forced arbitration” clauses — dense language buried deep in the …


CFPB Arbitration Rule Will Enrich Trial Lawyers, Not Protect Consumers

Today, the Consumer Financial Protection Bureau closes the comment period on its proposed rule to enrich trial lawyers at the expense of consumers. The Bureau misleadingly styles its proposal as one to regulate arbitration agreements. The truth is that the proposal is very intentionally designed for the singular goal of promoting class action lawsuits—the number one policy priority of the trial …


Uber, Just Add E-Tips Already

A California judge, in tossing lemons in the direction of Uber, has given the ride-hail company the most perfect excuse yet to make some lemonade. Here’s why: Thursday, United States District Judge Edward Chen rejected Uber’s proposed class-action settlement with drivers in California and Massachusetts. The original suit sought to change the way drivers are classified, from benefitless …


WorkCompCentral Workers’ Compensation News and Education

One of the more interesting issues on the horizon that has implications for workers’ comp is the question of whether “gig economy” workers will have rights as employees. In various posts I’ve been commenting on the Lyft and Uber class actions, since those seem to be the poster children for the disruptive companies who seek to change the legal landscape. Julius Young So it was with interest when …


Aurora Woman Sues Sprouts Over ID Theft, but Will Law Let Her?

Deb Price has filed a class-action lawsuit against Sprouts Farmer’s Market over identity theft. But the 59-year-old Aurora woman might never see a courtroom because of what she and many Americans sign without realizing it. Price signed an arbitration agreement when she was first hired that stipulates all work-related disputes be handled by an arbitrator that Sprouts helps select.


Federal Court Rejects Visa and Mastercard Class Action Settlements

In a unanimous ruling on Thursday, the US Court of Appeals for the Second Circuit rejected a settlement agreement between retailers and credit card issuers. Millions of retailers had reached a $7.25 billion antitrust settlement [NYT report] with Visa USA and MasterCard International [corporate websites] in 2013. However, after determining that some of …


Can Employers Enforce Class-Action Waivers in Arbitration Agreements?

Courts have generally enforced arbitration agreements if they allow employees to exercise their rights and aren’t too one-sided in favor of the employer. However, conflicting decisions by federal appeals courts have left employers uncertain as to whether they can require employees to sign class-action waivers as part of …