9th Circ. Removes Calif. Barrier To Arbitration Enforcement

Law360, New York (October 28, 2013, 8:11 PM EDT) -- The Ninth Circuit ruled Monday that the U.S. Supreme Court’s Concepcion and Italian Colors decisions required it to invalidate a California precedent shielding claims for broad, public injunctive relief from arbitration, saying the state rule is trumped by the Federal Arbitration Act.

A unanimous panel reversed the denial of Corinthian College Inc.’s bid to arbitrate a consolidated consumer class action, holding that California's so-called Broughton-Cruz rule barring arbitration of demands for public injunctive relief contravenes, and is therefore preempted by, the FAA.

The plaintiffs are ex-students...
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