The Consumer Financial Protection Bureau on May 5 released its proposed rule that would largely eliminate mandatory arbitration of financial services class actions. A summary of the proposal and a listing of other limits on mandatory arbitration is found here.
Arbitration Enforcement, Proceedings
Ban on Arbitration of Nursing Home Disputes Preliminarily Enjoined
A Mississippi federal court on November 7 preliminarily enjoined a new federal rule that would have banned arbitration clauses in nursing home and other long-term care contracts, as described in this updated article.
12 Ways to Avoid Arbitration Even After Congress Overturned the CFPB Arbitration Rule
On October 24 the Senate joined the House in repealing the CFPB Arbitration Rule that would have eliminated forced arbitration clauses containing class action bans in consumer financial contracts. This article lists twelve ways to still defeat a forced arbitration clause, even for class actions.
Getting Into Court by Initiating Arbitration
A May 2019 Eleventh Circuit decision provides an important illustration of how a consumer can end up in court (even in a class action) when the business does not comply with the arbitration provider’s rules. This article sets out practice tips on how a company’s failure to pay arbitration fees or meet other requirements can make the company’s arbitration agreement unenforceable.
Ninth Circuit: Collector Hired by State Agency Cannot Require Arbitration
Breazeale v. Victim Servs., Inc., 2017 WL 6601779 (9th Cir. Dec. 27, 2017) is an important decision with potentially broad consequences for litigation involving the commercialization of the criminal justice system. The court held that the Federal Arbitration Act, 9 U.S.C. § 1, et seq., does not apply to agreements between individuals and private contractors acting on behalf of the government, at...