By John Alan Doran Yesterday the U.S. Supreme Court ruled against a large national trucking company in its attempt to enforce an arbitration agreement against one of its independent contractor truck-drivers. New Prime Inc. v. Oliveira, No. 17-340 (U.S. January 15, 2019). The lawsuit alleged that New Prime contractors were actually employees, but were not paid minimum […]

State Law Bars Conditioning Employment on Agreement to Arbitrate

By Bill Wright Recently, the Kentucky Supreme Court considered whether the Federal Arbitration Act (“FAA”) preempts a state law.  The FAA prevents states from setting higher standards for entering into or enforcing arbitration agreements than for contracts generally.  The Kentucky law at issue read: [N]o employer shall require as a condition or precondition of employment […]

SCOTUS Benchslaps Cali…Again

By John Alan Doran This morning, the U.S. Supreme Court struck down a California Court of Appeals decision invalidating class action arbitration waivers. DIRECTV, Inc. v. Imburgia, (No. 14-462 December 14, 2015). DIRECTV’s customer service contract contained a mandatory arbitration clause.  That clause also waived the customer’s right to pursue a class action in arbitration.  […]

Board Penalizes Legal Argument

By Bill Wright Previously, we described a court’s reaction when some plaintiff-employees tried to reinstate their collective wage claim in court using a belated NLRB order against class action arbitration waivers. (See: Court Order Trumps Board) The NLRB is trying again to limit employers’ use of individual arbitration agreements with employees. In Countrywide Financial Corp. et […]

Court Nixes Non-Appealability Clause in Arbitration Agreement

By Lori Phillips Generally speaking, arbitration is a matter of contract, and arbitration agreements must be enforced according to their terms. The Ninth Circuit recently issued a caveat, however. In In re Wal-Mart Wage & Hour Employment Practices Litigation, No. 11-17718 (9th Cir. Dec. 17, 2013), an issue of first impression, the Ninth Circuit held […]

Surprise! Shocker! Court invalidates arbitration agreement…

…with “surprise” terms that “shock the conscience.” By Lori Phillips In Chavarria v. Ralphs Grocery Co., No. 11-56673 (9th Cir. Oct. 28, 2013), the Ninth Circuit shot down an employer’s motion to compel arbitration because it found the arbitration agreement both procedurally and substantively unconscionable under California contract law. In addition to the “take it […]

Too poor to arbitrate, but rich enough to litigate???

By John Alan Doran Yesterday the Arizona Court of Appeals decided a case that stands to undo the efficacy of arbitration agreements of all kinds in Arizona, including those found in the employment setting. Clark v. Renaissance West, LLC (Az. App. 7/30/2013). While the case involved elder abuse claims, the holding would seem to apply […]