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Arbitration

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District Court (Ill.) Orders Discovery and Trial (Under the FAA) on Arbitrability of Identity Theft Case

by Scott J. Hyman |

In Hoganberry v. Experian, et. al., No. 23 C 3690, 2023 WL 8113393, at *3–5 (N.D. Ill. Nov. 22, 2023), Judge Pallmeyer ordered a trial under the FAA of arbitrability of an identity theft matter based on the factual conflict between the moving party's authentication of the arbitration clause and the consumer's argument that he never signed/received it because the… Read More

District Court (Cal.) Finds Class Action Waiver in Automobile RISC Enforceable in Data Breach/CCPA Case

by Genevieve R. Walser-Jolly |

In Torres v. [Automobile Finance Company], No. 823CV00688DOCDFM, 2023 WL 5505887, at *5 (C.D. Cal. July 13, 2023), Judge Carter struck class action allegations in a data breach/CCPA case and ordered the Plaintiff's individual matter to arbitration. The facts were as follows: The following facts are drawn from Defendant's Notice of Removal (Dkt. 1), and the Declaration of XXX (“[]Decl.”)… Read More

3rd Cir. Affirms Arbitrator’s Right to Re-Allocate Arbitration Fees to Consumer Based on Claimant’s Alleged Manufacture of a TCPA Claim, Reverses Award of Attorney’s Fees Based on Indemnity Theory

by Scott J. Hyman |

In Credit One Bank, N.A. v. Lieberman, No. 22-1871, 2023 U.S. App. LEXIS 14853, at *1-9 (3d Cir. June 15, 2023), the Court of Appeals for the 3rd Circuit addressed re-allocation of arbitrator's fees and attorneys' fees based on an arbitrator's conclusion that TCPA claimant had manufactured the claim. Pursuant to a clause in the agreement, Adam instituted arbitration, claiming… Read More

District Court (Cal.) Finds Repossession Agency Unable to Enforce Arbitration Clause in Standard Form Automobile RISC

by Scott J. Hyman |

In Grant v. Par, Inc., No. 22-cv-04434-JD, 2023 U.S. Dist. LEXIS 73726, at *1-5 (N.D. Cal. Apr. 27, 2023), Judge Donato denied a repossession agency's motion to compel arbitration. PAR acknowledges that it "had no direct contract with plaintiff" and "hence is not a signatory to an arbitration provision" with plaintiff. Dkt. No. 42 at 9. Even so, PAR says… Read More

District Court (Cal.) Says Federal FCRA Case Raised for the First Time in Arbitration Did Not Create Federal Subject Matter Jurisdiction to Justify Removal

by Scott J. Hyman |

In Chase v. Kia Motors Am., Inc., No. 22-cv-09082-JCS, 2023 U.S. Dist. LEXIS 31208, at *1-2 (N.D. Cal. Feb. 24, 2023), Judge Spero concluded that he did not have jurisdiction to hear a federal claim raised for the first time in an arbitration referred by a state court.  Judge Spero summarized the case as follows: Defendant Hyundai Capital America d/b/a… Read More

District Court (Cal.) Finds CryptoCurrency Exchange’s Arbitration Clause Enforceable, But Not Subsequent Clause Amended Without Notice

by Scott J. Hyman |

In Michael Nguyen v. Okcoin USA Inc., No. 22-cv-06022-KAW, 2023 U.S. Dist. LEXIS 27449, at *4 (N.D. Cal. Feb. 17, 2023), Judge Westmore found that a Terms of Service amending an arbitration clause was not enforceable.  Defendant is a web-based cryptocurrency exchange, offering retail investors a marketplace to buy and sell cryptocurrencies. (Compl. ¶ 4.) In 2020, Terraform Labs began issuing… Read More

Court of Appeal (N.M.) Refuses to Enforce Automobile Title Lender’s Arbitration Clause

by Scott J. Hyman |

In Pedregon v. Titlemax of N.M., No. A-1-CA-39466, 2023 N.M. App. Unpub. LEXIS 24, at *3-6 (Ct. App. Jan. 23, 2023), the New Mexico Court of Appeal refused to enforce an automobile title lender's arbitration clause. We first review the district court's determination that the arbitration agreement was presumptively unconscionable—on its face—based upon the unfairness of the terms contained therein.… Read More

District Court (Hawaii) Interprets SCOTUS’ Morgan Decision Under 9th Cir. Precedent; Finds No Waiver of Arbitration

by Scott J. Hyman |

In Jeffrey Chong v. Bank of Am., N.A., No. 22-00151 JMS-KJM, 2022 U.S. Dist. LEXIS 203101, at *2-5 (D. Haw. Nov. 8, 2022), Judge Seabright found no waiver of arbitration of an FCRA case under the SCOTUS' decision in Morgan. In the Ninth Circuit (until recently), "[a] party seeking to prove waiver of a right to arbitration must demonstrate: (1)… Read More

Ala. Supreme Court Says Purchased of Used Vehicle Involves Interstate Commerce; Enforces Arbitration Clause

by Scott J. Hyman |

In Valerio's Auto Sales v. Flowers, No. 1210295, 2022 Ala. LEXIS 102 (Oct. 21, 2022), the Alabama Supreme Court reversed the trial court’s denial of a car dealer’s petition to compel arbitration. In support of its motion to compel arbitration, Valerio's submitted to the trial court a copy of the contract Flowers signed when she purchased her vehicle; that contract… Read More

Court of Appeal (Cal.) Says Failure to Pay Arb. Fees within 30-days of Invoice under CCP 1281.97 Waives Arbitration, Even if No Prejudice or Substantial Compliance

by Scott J. Hyman |

In Espinoza v. Superior Court, No. B314914, 2022 Cal. App. LEXIS 816, at *10-17 (Ct. App. Sep. 27, 2022), the Court of Appeal found that the defendant's failure to pay an arbitrator's invoice within 30 days barred arbitration, period, even if no prejudice or if there was substantial compliance.  The Court of Appeal stated. The parties do not dispute that… Read More

District Court (Cal.) Grants Petition to Compel Arbitration of TCPA Class Action Plaintiff’s Case

by Scott J. Hyman |

In Pizarro v. Quinstreet, Inc., No. 22-cv-02803-MMC, 2022 U.S. Dist. LEXIS 145556, at *1-2 (N.D. Cal. Aug. 15, 2022), Judge Chesney ordered a TCPA Class-action Plaintiff's case to arbitration. In her Complaint, Pizarro alleges QuinStreet is a "marketing company" that "sells consumer contact information to lenders" in exchange for referral fees. (See Compl. ¶ 4.) Specifically, Pizarro alleges, QuinStreet "harvests… Read More

Court of Appeal (Cal.) Says Statutory Penalty Against Party Who is Late on Paying Arbitration Fees is Not Pre-empted by FAA

by Scott J. Hyman |

In Gallo v. Wood Ranch United States, No. B311067, 2022 Cal. App. LEXIS 652, at *3-6 (Ct. App. July 25, 2022), the Court of Appeal addressed the effect of late payment of arbitration fees under the penalties provided for by Civil Procedure Code sections 1281.97 and 1281.99, which obligate a company or business who drafts an arbitration agreement to pay… Read More

SCOTUS Says FAA Pre-emption Means Pre-emption

by Scott J. Hyman |

In  Viking River Cruises, Inc. v. Moriana, the U.S. Supreme Court held that the FAA does not preempt California law insofar as it invalidates a waiver of an employee's right to bring PAGA claims arising out of Labor Code violations that affected the plaintiff employee.  However, the FAA does preempt California law (Iskanian v. CLS Transportation Los Angeles, LLC (2014)… Read More

District Court (Cal.) Enforces Arbitration Clause as Not Prohibiting Public Injunctive Relief After Defendant Argues that Right to Individual Injunction in Arbitration Permits Arbitrator to Award Public Injunctive Relief

by Scott J. Hyman |

In Maybaum v. Target Corp., No. 2:22-cv-00687-MCS-JEM, 2022 U.S. Dist. LEXIS 80466, at *15-16 (C.D. Cal. May 3, 2022), Judge Scarsi enforced an arbitration clause despite arguments over whether the Arbitration Clause prohibited a right to public injunctive relief "in any forum" under McGill.  Plaintiff argues that California law prohibits compelling arbitration of her claims because she seeks public injunctive… Read More

9th Cir. Addresses Enforcement of “On-Line” Consent to Arbitration in TCPA Case

by Scott J. Hyman |

In Berman v. Freedom Fin. Network, LLC, No. 20-16900, 2022 U.S. App. LEXIS 9083, at *12-14 (9th Cir. Apr. 5, 2022), the 9th Circuit addressed the enforceability of an arbitration agreement set forth on a website that allowed the consumer to click-through the operator's various policies and the arbitration.  The Court of Appeals stated the rule as follows: The most… Read More

9th Cir. Says California State Courts of Appeal Got It Wrong in Their Interpretation of McGill’s Effect on Arbitration Clause Enforcement

by Scott J. Hyman |

In Hodges v. Comcast Cable Communications, LLC.,  the Court of Appeals for the 9th Circuit held that the district court erred in denying Comcast's motion to compel arbitration even though its arbitration clause precluded customers from litigating public injunction claims in any forum.  First, the Court of Appeals held that the mere presence of the clause in the arbitration agreement… Read More

9th Cir. Says Injunctive Relief that Benefits Defined Class is Not “Public Injunctive Relief” under Blair/McGill

by Scott J. Hyman |

In Capriole v. Uber Techs., No. 20-16030, 2021 U.S. App. LEXIS 22738, at *35-40 (9th Cir. Aug. 2, 2021), the Court of Appeals for the 9th Circuit held that injunctive relief designed to benefit only a defined class of individuals is not "public" injunctive relief under Blair.   Nevertheless, Plaintiffs argue that their request for preliminary relief classifying them as employees is one… Read More

District Court (Cal.) Applies Arbitration Clause Only to Product Purchasers in Data Sharing Case; Non-Purchasers Whose Data Was Gathered or Shared Need Not Arbitrate

by Scott J. Hyman |

In In re Ring LLC Privacy Litig., No. CV 19-10899-MWF (RAOx), 2021 U.S. Dist. LEXIS 118461, at *8 (C.D. Cal. June 24, 2021), Judge Fitzgerald ordered the purchasers' claims to arbitration, but not so for the non-purchasers whose data allegedly was improperly gathered and/or shared.  The allegations were that The FAC alleges that Ring's security systems were defectively designed without… Read More

District Court (Mo.) Says FTC Holder Rule Swings Both Ways; Auto Finance Company Can Enforce Arbitration Clause in RISC

by Scott J. Hyman |

In Henry v. Vantage Credit Union, No. 4:20-cv-01865-SRC, 2021 U.S. Dist. LEXIS 101571 (E.D. Mo. May 28, 2021), Judge Clark granted an auto finance company’s motion to compel arbitration. As stated above, state law governs the validity of an arbitration agreement and Henry's argument has been explicitly rejected in Missouri. See Boulds v. Chase Auto Finance Corp., 266 S.W.3d 847… Read More

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