Arbitration

On January 12, 2024, the U.S. Supreme Court granted certiorari in Smith, et al. v. Spizzirri, et al., No. 22-1218 to consider whether a district court must stay a case — rather than dismiss it — when presented with an enforceable arbitration agreement.

On December 5, 2023, the Ninth Circuit in Bielski, et al. v. Coinbase, Inc., concluded that federal courts can look to the parties’ agreement as a whole when determining whether the delegation provision of an arbitration agreement is enforceable and held that the at-issue delegation provision was not unconscionable.

Since its enactment in 2010, California’s Automatic Renewal Law has motivated an ever-increasing number of putative class action complaints. The latest surge is due in large part to amendments that went into effect last summer that add to the statute’s requirements for businesses offering goods or services on a subscription basis.

In a May 23, 2022 unanimous decision, the United States Supreme Court ruled a showing that the other side has been prejudiced by a delay is not required for a party that has proceeded with litigation to waive its contractual right to arbitrate.

A recent decision from the Ninth Circuit illustrates that to be enforceable, website agreement terms must be “reasonably conspicuous” and users must “manifest unambiguous assent” to those terms.

Recent decisions out of the Northern District of California and Ninth Circuit may reflect a new era of McGill jurisprudence.

While the United States Supreme Court has made clear that class action waivers in arbitration clauses can be enforced, plaintiffs’ counsel continue to find creative ways to challenge these types of arbitration agreements.

In a putative class action against Amazon, Nicosia v. Amazon.com, Inc., the Second Circuit recently issued a ruling (“Nicosia II”) sending the named plaintiff’s claims to arbitration based on an arbitration clause contained in Amazon’s conditions of use.

Employers with mandatory arbitration agreements should be careful to re-affirm their commitment to such arbitration agreements in light of Adock v. Five Star Rentals/Sales, Inc.