Calif. Arbitration Rule Preempted, US Chamber Tells 9th Circ.

Law360, New York (November 1, 2012, 2:32 PM EDT) -- The U.S. Chamber of Commerce has urged the Ninth Circuit to uphold a decision that KeyBank NA could compel arbitration with a group of students over the terms of their loans, saying federal law preempts a California rule requiring certain arbitration claims to be heard in court.

According to the advocacy group’s amicus brief, filed Oct. 26, a California precedent prohibiting arbitration claims for broad, public injunctive relief — the so-called Broughton/Cruz rule — conflicts with, and is therefore preempted by, the Federal Arbitration Act, as...
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