Compliance Bulletin

The California Supreme Court erected another roadblock against the enforceability of arbitration agreements, setting the stage for yet another possible U.S. Supreme Court decision. The California high court held that it was against public policy for parti
April 17, 2017

The California Supreme Court erected another roadblock against the enforceability of arbitration agreements, setting the stage for yet another possible U.S. Supreme Court decision. The California high court held that it was against public policy for parties to agree to waive statutory rights that are intended to benefit the public. The plaintiff in the case, a bank customer, sought to obtain injunctive relief, a form of remedy that the arbitration agreement did not allow. The defendant bank argued that the U.S. Supreme Court, in its decision AT&T Mobility v. Concepcion, disapproved of this form of claim under arbitration because it undercuts the goal of the Federal Arbitration Act to resolve disputes efficiently. The decision is especially disappointing since the Court had ruled in favor of enforceability in a 2014 arbitration decision.

See CBA’s Regulatory Compliance Bulletin for more information.

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