Tenth Circuit: Effective Vindication Exception Invalidates Arbitration Agreement. ERISA Action Advances in Court
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By Harry A. Jacobowitz, Esq.**

A U.S. Court of Appeals holds that the Supreme Court’s effective vindication exception to the enforcement of arbitration agreements applies to an arbitration agreement that prevents a defined compensation retirement plan participant from pursuing plan-wide remedies.

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Strict Atalese Standard Doesn’t Apply to PDAA Between Sophisticated Parties
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By George H. Friedman, SAA Publisher & Editor-in-Chief

In a case of first impression, the New Jersey Appellate Division holds that the strict “waiver of jury trial” requirement for predispute arbitration agreements (“PDAA”) involving consumers articulated in Atalese and its progeny does not apply to PDAAs between sophisticated parties of relatively equal bargaining positions.

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Split Ninth Circuit Holds California’s AB-51 is Preempted by the FAA
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By George H. Friedman, SAA Publisher & Editor-in-Chief

A divided Ninth Circuit Panel holds that California’s AB-51 is preempted by the Federal Arbitration Act (“FAA”).

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EFASASHA Didn’t Invalidate Employment PDAA, But Unconscionability Did
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By George H. Friedman, SAA Publisher & Editor-in-Chief

Because the employee’s sexual harassment lawsuit predated the March 2022 effectiveness of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (“EFASASHA”),

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CFPB Proposes Registry for Arbitration Clause and Class Action  Waiver Use
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By George H. Friedman, SAA Publisher & Editor-in-Chief

The Consumer Financial Protection Bureau (“CFPB” or “Bureau”) has proposed a new rule seeking information from nonbanks on among other things arbitration and class action waivers.

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CA’s Arbitration Statute on Unpaid Arbitration Fees Does Not Require a Finding from the Arbitrator and Applies to Voluntary Arbitration Agreements
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By George H. Friedman, SAA Publisher & Editor-in-Chief

The California statute allowing a consumer to evade an arbitration agreement if a business does not pay its share of arbitration fees does not require an affirmative finding from an arbitrator and applies to voluntary arbitration agreements.

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