California Deals Another Blow to Arbitration Agreements, But It Is Far From A Knockout Punch

California Deals Another Blow to Arbitration Agreements, But It Is Far From A Knockout Punch

Apr 19, 2017

Client Alert

Co-author, Brownstein Client Alert, April 19, 2017

California continues to modify the Concepcion landscape. On April 6, 2017, the California Supreme Court once again issued a pro-consumer ruling that is already being applauded by the plaintiffs’ bar. The ruling came out in the Sharon McGill v. Citibank, N.A., Riverside County Superior Court matter, Case No. RIC1109398 and is being viewed as a departure of the U.S. Supreme Court’s ruling in AT&T Mobility LLC v. Concepcion, which established that the Federal Arbitration Act preempted all state-law rules that created an outright ban of arbitration. In its 7-0 order, the state’s high court voided part of a credit card company’s arbitration agreement in which a party waived its right to seek injunctive relief.

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