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Arbitration
Trump Signs Repeals of CFPB Consumer Arbitration Rule
November 7, 2017
President Trump on Wednesday signed a repeal of the Consumer Financial Protection Bureau’s (CFPB) rule on forced arbitration, winning praise from banking and business groups. Trump approved the resolution to repeal the CFPB rule, meant to prevent banks and credit card companies from blocking customers from joining class-action lawsuits against them, in a private Oval Office signing. The House passed a resolution to repeal the rule in July, which passed the Senate two weeks ago.
November 7, 2017
President Trump on Wednesday signed a repeal of the Consumer Financial Protection Bureau’s (CFPB) rule on forced arbitration, winning praise from banking and business groups. Trump approved the resolution to repeal the CFPB rule, meant to prevent banks and credit card companies from blocking customers from joining class-action lawsuits against them, in a private Oval Office signing. The House passed a resolution to repeal the rule in July, which passed the Senate two weeks ago.
Congress Quashes CFPB Arbitration Rule: What Next?
November 7, 2017
Pencils down. (Is the modern equivalent “cursors down”?) All the attorneys who were drafting new form consumer agreements to comply with the CFPB ruleprohibiting class action waivers can now trash those documents. Pursuant to the Congressional Review Act, the Senate voted 51-50 last night (with the VP as tie-breaker) to nullify the CFPB’s rule. (The House of Representatives had cast a similar vote earlier this summer.) And President Trump has signaled he will sign the bill. But...
November 7, 2017
Pencils down. (Is the modern equivalent “cursors down”?) All the attorneys who were drafting new form consumer agreements to comply with the CFPB ruleprohibiting class action waivers can now trash those documents. Pursuant to the Congressional Review Act, the Senate voted 51-50 last night (with the VP as tie-breaker) to nullify the CFPB’s rule. (The House of Representatives had cast a similar vote earlier this summer.) And President Trump has signaled he will sign the bill. But...
A Win for Arbitration Process, A Loss for the Cowboys and Ezekiel Elliot
November 6, 2017
As a sports fan and a fan of arbitration, I have followed with interest the ongoing battles between the NFLPA and the NFL over the consequences of their unusual arbitration process. It is no surprise to those who follow arbitration that the Fifth Circuit, ruled today that the NFLPA’s attempt to circumvent the parties’ agreed arbitration process by moving for a preliminary injunction in court was premature. As some may recall, “Arbitrator” Roger Goodell issued a six game suspension to former...
November 6, 2017
As a sports fan and a fan of arbitration, I have followed with interest the ongoing battles between the NFLPA and the NFL over the consequences of their unusual arbitration process. It is no surprise to those who follow arbitration that the Fifth Circuit, ruled today that the NFLPA’s attempt to circumvent the parties’ agreed arbitration process by moving for a preliminary injunction in court was premature. As some may recall, “Arbitrator” Roger Goodell issued a six game suspension to former...
CFPB Arbitration Rule Overturned
November 3, 2017
This summer, I reported the news that after much study, the Consumer Financial Protection Bureau (CFPB) had issued its arbitration...
November 3, 2017
This summer, I reported the news that after much study, the Consumer Financial Protection Bureau (CFPB) had issued its arbitration...
Important Employment Arbitration Cases in the Supreme Court
November 2, 2017
Stanford Law Professor David Freeman Engstrom wrote a useful op-ed in the New York Times explaining why three cases argued in the Supreme Court today are so important for workers. In brief, he notes that there are various mechanisms to protect workers including unions, government regulation, and litigation and argues that the first two of these have become less effective in recent decades. So litigation has become much more important. Others can explain the specific legal issues and nuances...
November 2, 2017
Stanford Law Professor David Freeman Engstrom wrote a useful op-ed in the New York Times explaining why three cases argued in the Supreme Court today are so important for workers. In brief, he notes that there are various mechanisms to protect workers including unions, government regulation, and litigation and argues that the first two of these have become less effective in recent decades. So litigation has become much more important. Others can explain the specific legal issues and nuances...
Can Arbitration Solve Tech Sector’s Litigation Cost Concerns?
October 27, 2017
A recent report identifies budgeting and time as major concerns for tech companies during litigation. Arbitration is an answer, says the report, but pros and cons exist for both dispute resolution mechanisms. A new report from the Silicon Valley Arbitration and Mediation Center (SVAMC) and the Global Technology Dispute Resolution Council documented some of the technology sector’s biggest concerns about litigation and how they may be potentially addressed through arbitration. Sixty-four percent...
October 27, 2017
A recent report identifies budgeting and time as major concerns for tech companies during litigation. Arbitration is an answer, says the report, but pros and cons exist for both dispute resolution mechanisms. A new report from the Silicon Valley Arbitration and Mediation Center (SVAMC) and the Global Technology Dispute Resolution Council documented some of the technology sector’s biggest concerns about litigation and how they may be potentially addressed through arbitration. Sixty-four percent...
Appellate Court Refuses to Order Uber-Waymo Dispute to Arbitration
October 24, 2017
A federal appellate court has affirmed a lower court’s order denying a motion to compel arbitration in a dispute between Uber Technologies and Google Corporation’s self-driving car spin-off, Waymo LLC. In the case, Waymo filed a trade secret misappropriation, unfair competition, and patent infringement lawsuit against Uber and several other corporate entities in the Northern District of California. According to Waymo, the company’s former employee, Anthony Levandowski, stole numerous...
October 24, 2017
A federal appellate court has affirmed a lower court’s order denying a motion to compel arbitration in a dispute between Uber Technologies and Google Corporation’s self-driving car spin-off, Waymo LLC. In the case, Waymo filed a trade secret misappropriation, unfair competition, and patent infringement lawsuit against Uber and several other corporate entities in the Northern District of California. According to Waymo, the company’s former employee, Anthony Levandowski, stole numerous...
California Outlaws Forced Arbitration Clauses by Banks
October 20, 2017
On Sept. 12, 2017, Senate Bill 33 was approved by the California Senate and now awaits Governor Brown’s approval before becoming law. The legislation was designed after the Wells Fargo scandal to block legal the legal tactic of keeping disputes over unauthorized bank accounts out of public court proceedings an favor of private arbitration. Said the law’s author, Sen. Dodd (D-Napa): “The idea that consumers can be blocked from our public courts when their bank commits fraud and identity...
October 20, 2017
On Sept. 12, 2017, Senate Bill 33 was approved by the California Senate and now awaits Governor Brown’s approval before becoming law. The legislation was designed after the Wells Fargo scandal to block legal the legal tactic of keeping disputes over unauthorized bank accounts out of public court proceedings an favor of private arbitration. Said the law’s author, Sen. Dodd (D-Napa): “The idea that consumers can be blocked from our public courts when their bank commits fraud and identity...
Uber Arbitration Clause Win
October 19, 2017
The U.S. Court of Appeals for the Second Circuit recently reversed a district court’s decision to deny Uber’s move to compel arbitration in a contract with one of its passengers, Spencer Meyers. The district court had found that Meyer did not have reasonably conspicuous notice of Uber’s terms of service (which contained the arbitration clause) when he registered a user, that Meyer did not unambiguously assent to the terms of service, and that Meyer was not bound by the mandatory arbitration...
October 19, 2017
The U.S. Court of Appeals for the Second Circuit recently reversed a district court’s decision to deny Uber’s move to compel arbitration in a contract with one of its passengers, Spencer Meyers. The district court had found that Meyer did not have reasonably conspicuous notice of Uber’s terms of service (which contained the arbitration clause) when he registered a user, that Meyer did not unambiguously assent to the terms of service, and that Meyer was not bound by the mandatory arbitration...
California Court Finds Broad Arbitration Clause Unconscionable
October 17, 2017
A recent case out of California, Pimpo v. Fitness International, LLC, D071140 (behind paywall), finds an arbitration clause in a contract unenforceable due to unconscionability. In the case, Pimpo worked at one of Fitness International's fitness centers, where another employee sexually harassed her. Pimpo made several reports about the other employee's behavior and ultimately ended up suing over the sexual harassment. Fitness International responded by moving to compel arbitration based on a contract...
October 17, 2017
A recent case out of California, Pimpo v. Fitness International, LLC, D071140 (behind paywall), finds an arbitration clause in a contract unenforceable due to unconscionability. In the case, Pimpo worked at one of Fitness International's fitness centers, where another employee sexually harassed her. Pimpo made several reports about the other employee's behavior and ultimately ended up suing over the sexual harassment. Fitness International responded by moving to compel arbitration based on a contract...
