KeyBank Can Arbitrate Students' Loan Claims, 9th Circ. Rules

Law360, Los Angeles (April 11, 2013, 4:05 PM EDT) -- The Ninth Circuit ruled en banc Thursday that KeyBank NA can compel a group of students to arbitrate their claims over education loans for a sham aviation school, finding KeyBank’s arbitration provision, including its class waiver clause, “not unconscionable.”

The Ninth Circuit vacated the district court’s dismissal of plaintiffs’ claims, reversed the denial of KeyBank's motion to compel arbitration, and remanded the case with instructions to compel arbitration. But it did not decide whether a California precedent barring arbitration of claims for broad, public injunctive relief —...
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