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9th Cir. Says Arb. Clause Did Not Violate McGill Rule Because Consumer Can Get Public Injunctive Relief as an Individual in Arbitration

by Scott J. Hyman |

In DiCarlo v. MoneyLion, Inc., No. 20-55058, 2021 U.S. App. LEXIS 4817 (9th Cir. Feb. 19, 2021), the Court of Appeals for the 9th Circuit ordered a case to arbitration, finding that the arbitration clause did not violate the McGill rule. California's legal requirement that contracts allow public injunctive relief is known as the McGill rule. See McGill v. Citibank, N.A., 2… Read More

9th Cir. Says Consumer Bound to Website Arbitration Clause

by Scott J. Hyman |

In Stover v. Experian Holdings, Inc., No. 19-55204, 2020 U.S. App. LEXIS 33176 (9th Cir. Oct. 21, 2020), the Court of Appeals for the Ninth Circuit affirmed a district court’s arbitration order. Rachel Stover appeals the district court's order compelling arbitration of her claims based on her purchase of the Experian Credit Score subscription service in 2014. Two versions of… Read More

District Court (Cal.) Says Arbitration Clause’s Prohibition Against Class Action Did Not Bar Claims For Injunctive Relief In Any Forum Because a Claim for Public Injunctive Relief Is Not A “Class Action”

by Scott J. Hyman |

In Ionescu v. Extra Space Storage, No. 19-cv-02226-YGR, 2019 U.S. Dist. LEXIS 143992, at *1-2 (N.D. Cal. Aug. 23, 2019), Judge Gonzalez-Rogers ordered a claim to arbitration. The facts were as follows: Plaintiffs Alexandru Ionescu, Lenay Johnson, and Lamar Mosley bring this putative class-action law suit against defendant Extra Space Storage Inc. ("Extra Space") for false advertising in violation of… Read More

District Court (Cal.) Says Class Claims Plead Non-Arbitratable Claims for “Public Injunctive Relief”, but Such Claims Should Be Stayed Pending Outcome of Arbitration of Individual Claims.

by Scott J. Hyman |

In Eiess v. Usaa Fed. Sav. Bank, No. 19-cv-00108-EMC, 2019 U.S. Dist. LEXIS 144026, at *2-4 (N.D. Cal. Aug. 23, 2019), Judge Chen ordered a class action plaintiff's individual claim to arbitration, and stayed the claim for public injunctive relief pending the outcome of Plaintiff's individual claim. The facts were as follows: Ms. Eiess is a customer of USAA and… Read More

9th Cir. Says FAA Doesn’t Pre-empt California S.Ct.’s Decision in McGill

by Scott J. Hyman |

In Blair v. Rent-A-Center, Inc., No. 17-17221, 2019 U.S. App. LEXIS 19476 (9th Cir. June 28, 2019), the Court of Appeals for the 9th Circuit held that the F.A.A. does not pre-empt the California Supreme Court’s McGill decision.  The Court of Appeals summarized its decision as follows: The panel affirmed the district court's denial of Rent-A-Center's motion to compel arbitration… Read More

District Court (Cal.) Orders Auto Case to Arbitration; Arbitrator to Determine Effect of McGill on Enforceability of Arbitration Clause

by Scott J. Hyman |

In Garcia v. Santander Consumer USA, Inc., 2017 WL 4325777, at *2–3 (E.D.Cal., 2017), Judge McGill ordered an auto finance case to arbitration, allowing the Arbitrator to determine the effect of McGill on the enforceability of the Arbitration clause. The arbitration provision stated in part, “Any claim or dispute is to be arbitrated by a single arbitrator on an individual basis and not… Read More

Court of Appeal (Cal.) in McGill Runs Full Course; Remands to Trial Court to Determine Severability of Public Relief Waiver and Whether McGill Waived Her Right to Challenge the Trial Court’s Order

by Scott J. Hyman |

In McGill v. Citibank, 2017 WL 4382034, at *3 (Cal.App. 4 Dist., 2017) (unpublished), the Court of Appeal put its gloss on the Supreme Court's decision in McGill and what is left for the trial court to decide on remand. The Supreme Court concluded its opinion with the following paragraph: “Our invalidation of the arbitration provision insofar as it purports to waive McGill's… Read More

California Supreme Court Side-steps Whether Broughton/Cruz Rule Survives Concepcion

by Scott J. Hyman |

In McGill v. Citibank, N.A., 2017 WL 1279700, at *1 (Cal., 2017), the California Supreme Court side-stepped whether the Broughton/Cruz rule survives Concepcion.  See Kilgore v. KeyBank, Nat. Ass'n, --- F.3d ----, 2012 WL 718344 (9th Cir. 2012) ("the Broughton–Cruz rule does not survive Concepcion because the rule “prohibits outright the arbitration of a particular type of claim”—claims for broad public… Read More