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Supreme Court (New Mexico) Finds Arbitration Clause in Automobile RISC Not Unconscionable

by Scott J. Hyman |

In Eileen J. Dalton v. Santander Consumer Usa, Inc., 2016 WL 5266621, at *6 (N.M., 2016), the New Mexico Supreme Court rejected an unconscionability challenge to an arbitration clause in the standard form RISC. "The self-help and small claims carve-out provisions in the arbitration clause of the finance contracts are not substantively unconscionable. Therefore, Dalton did not satisfy her burden… Read More

CFPB Issues Notice of Proposed Rulemaking Regarding Consumer Arbitration Clauses

by Scott J. Hyman |

Today, the CFPB issued a Notice of Proposed Rulemaking with regard to consumer arbitration, here:  CFPB_Arbitration_Agreements_Notice_of_Proposed_Rulemaking.  The CFPB's press release is here:  CFPB Press Release. The CFPB proposal is seeking comment on a proposal to prohibit companies from putting mandatory arbitration clauses in new contracts that prevent class action lawsuits. The proposal would open up the legal system to consumers… Read More

District Court (Cal.) Enforces RISC Arb. Clause Post-Sanchez, Finding No Waiver; Says in Dicta that Broughton/Cruz Pre-empted

by Scott J. Hyman |

In Goodridge v. KDF Automotive Group, Inc., 2016 WL 142216, at *9-10 (Cal.App. 4 Dist., 2016) (unpublished), the Court of Appeal addressed Plaintiff's continued post-Sanchez fight against arbitration, finding that the standard form RISC was not unconscionable.  The Court of Appeal also found that that the Defendant's litigation conduct did not waive the right to assert it. We conclude Goodridge has not… Read More

Third Time’s a Charm: Court of Appeal (Cal.) Orders NOI Class Action to Arbitration; Rejects Sanchez’ “Ability to Pay Arbitration Costs” Loophole Where Cheaper Vehicles are Involved

by Scott J. Hyman |

In Trabert v. Consumer Portfolio Services, Inc., 2015 WL 9271437, at *6-8 (Cal.App. 4 Dist. 2015) (unpublished), the Court of Appeal addressed for the third time whether an arbitration clause in a standard form RISC was unconscionable.  The Court of Appeal addressed the consumer's argument that Sanchez was distinguishable where cheaper cars purchased by poorer consumers was involved.  The Court of Appeal… Read More

Court of Appeal (Cal.) Finds Arb. Clause on Sanchez Remand Not Unconscionable; Says Trial Court Properly Struck Class Allegations in Granting Petition to Arbitrate

by Scott J. Hyman |

In Vargas v. SAI Monrovia B, Inc., 2015 WL 7301781, at *5 (Cal.App. 2 Dist., 2015) (unpublished), the Court of Appeal found the RISC arb. clause not to be unconscionable.  What's interesting about the opinion is what to do with the class action allegations in granting the petition to arbitration.  The Court of Appeal found that the trial court properly… Read More

Court of Appeal (Cal.) Says, after Sanchez Remand, RISC Arb. Clause is Enforceable

by Scott J. Hyman |

In Gillespie v. Svale Del Grande, Inc., 2015 WL 7307139, at *5-6 (Cal.App. 6 Dist., 2015) (unpublished), the Court of Appeal issued a lengthy opinion after remand from the Supreme Court in Sanchez that the Arbitration clause was enforceable.  The Court rejected the argument that neither the Arbitration Clause's choice of law or poison-pill provisions negated FAA pre-emption. The California Supreme Court disagreed… Read More

Court of Appeal (Cal.) Finds Arbitration Clause Enforceable in Call Recording Class Action; Says Arb. Clause’s Reference to Using AAA Necessarily Incorporated AAA’s Rules, Including Delegation to Arbitrator Whether Class Claims Can Be Decided by Arbitrator

by Scott J. Hyman |

In Brinkley v. Monterey Financial Services, Inc., 2015 WL 7302268 (Cal.App. 4 Dist., 2015), the California Court of Appeal found a TCPA/Call Recording case to be within the scope of an enforceable arbitration clause:= We conclude that Brinkley's claims fall within the scope of the arbitration agreement and that the arbitration agreement is enforceable, with the exception of one provision… Read More

Court of Appeal (Cal.) Denies Petition to Arbitrate Because Translated Form of Automobile RISC Provided to Spanish-Speaking Customer Did Not Have an Arbitration Clause

by Scott J. Hyman |

In Ramos v. Westlake Services LLC, 2015 WL 6605215, at *4 (Cal.App. 1 Dist., 2015), the Court of Appeal in an unpublished decision affirmed the denial of a petition to arbitrate because, apparently, the dealer gave the customer the wrong translated form of the RISC -- one without an arbitration clause.  "[T]he trial court found that while he had received a… Read More

California Supreme Court Issues Sanchez v. Valencia Motors Decision on Enforceability of Arbitration Clause in Standard Form RISC

by Scott J. Hyman |

Today, the California Supreme Court handed car dealers and auto finance companies an important victory, upholding the arbitration clause in the standard form automobile purchase contract used by most dealers in the Golden State.  (Sanchez v. Valencia Holding Co., LLC. (S199119; Aug. 3, 2015).)  A copy of the California Supreme Court's decision can be found here.  The California Supreme Court… Read More

Our Report on Yesterday’s Oral Argument before the California Supreme Court on the Sanchez Arbitration Case

by Scott J. Hyman |

Yesterday, the California Supreme Court heard oral argument in Sanchez (Gil) v. Valencia Holding Co. LLC, S199119. (B228027; 201 Cal.App.4th 74; Superior Court of Los Angeles County; BC433634) on whether the Federal Arbitration Act (9 U.S.C. § 2), as interpreted in AT&T Mobility LLC v. Concepcion (2011) 563 U. S. __, 131 S.Ct. 1740, preempts state law rules invalidating mandatory arbitration provisions… Read More

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