In a 5-4 decision authored by Chief Justice Roberts on April 24, 2019, the United States Supreme Court held that the Federal Arbitration Act (“FAA”) precludes a court from compelling class arbitration when an agreement is ambiguous on the availability of such arbitration. Lamps Plus Inc. et al. v. Varela, No. 17-988, 587 U.S.
Arbitration
Court Holds Arbitration Agreement Requiring Employee to Pay Half of Arbitration Costs is Unconscionable
By Jacklina Len & Laura Reathaford on
In Chavarria v. Ralphs Grocery Co., No. 11-56673, 2013 WL 5779332 (9th Cir. Oct. 28, 2013), the plaintiff, a former deli clerk, brought a class action against Ralphs for various alleged wage and hour violations of the California Labor Code. As a condition of employment, Chavarria signed an arbitration agreement containing a class action waiver. Ralphs filed a motion to compel arbitration.
Oxford Health Plans v. Sutter
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Arbitration clauses meant to prohibit class action arbitrations, whether in employment agreements or other documents, need to be reviewed after a recent Supreme Court decision. In Oxford Health Plans v. Sutter, ___ U.S. ____, No. 12-135 (June 10, 2013), the Court unanimously upheld an arbitrator’s ruling that a pediatrician could proceed with a class action arbitration against Oxford Health Plans under a fee-for-services contract that was silent as to class arbitration. In doing so, the Court clarified its prior holding in Stolt-Nielsen S.A. v. AnimalFeeds Int’l Corp., 559 U.S. 662 (2010) that an arbitrator only may permit a class arbitration if the contract at issue permits it.
California Court Rejects Class Action Waivers In Employment Arbitration Agreements
By Laura Reathaford on
The California Court of Appeal has rejected a class action waiver in an employment agreement on the basis that the waiver (or agreement) was unconscionable.