9th Circ. Denials Sustain Consumer Arbitration Hurdles

By Perrie Weiner, Ben Turner and Kirby Hsu (April 27, 2020, 12:15 PM EDT) -- Do you think your company's arbitration agreement is enforceable in California? If you do, think again.

Three years ago, the California Supreme Court dramatically upended the landscape for consumer arbitration agreements. In a controversial opinion that confounded federal district courts, the California Supreme Court in McGill v. Citibank NA,[1] held that arbitration agreements are invalid unless they allow plaintiffs to seek public injunctive relief. Since its issuance in April of 2017, class action plaintiffs have wielded the McGill rule as a powerful weapon for evading consumer arbitration agreements. 

Many, if not most, consumer arbitration agreements in California are broadly drafted to...

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