Calif. Panel Says Concepcion Defeats Broughton-Cruz Rule

Law360, Los Angeles (December 19, 2014, 8:11 PM EST) -- A California appellate panel Thursday bolstered the Federal Arbitration Act's preemption in the Golden State, finding the U.S. Supreme Court's Concepcion decision and the state high court's Iskanian ruling defeat a judge's reliance on the Broughton-Cruz rule to deny Citibank NA's bid to arbitrate an insurance consumer class' injunctive-relief claims.

In its published, 23-page opinion, the three-judge panel wrote that the U.S. Supreme Court decision in AT&T Mobility LLC v. Concepcion established that the FAA preempts all state-law rules that amount to an outright ban of arbitration. The panel also rejected the class' contention that the California Supreme Court ruling in...

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