9th Circ. To Mull Concepcion In KeyBank Loan Suit Rehearing

Law360, New York (September 24, 2012, 2:59 PM EDT) -- The Ninth Circuit said Friday it would rehear en banc a suit brought by a group of students against KeyBank NA over the terms of their student loans, freezing a three-judge panel’s March ruling that the bank could compel arbitration in light of the U.S. Supreme Court's 2011 decision in AT&T Mobility Inc. v. Concepcion.

The appeals panel initially handed a win to KeyBank, saying that because of Concepcion, the Federal Arbitration Act preempts state law in California prohibiting arbitration claims for broad, public injunctive relief....
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