Category: Consumer Arbitration
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Waiving the right to arbitration in class actions. Overview of recent decisions from the First, Third, and Seventh Circuits
Under the Federal Arbitration Act (“FAA”), 9 U.S.C. § 3, if a suit is brought in any U.S. court upon an issue referable to arbitration, a party may petition the court to stay the trial of such an action until the arbitration has been had in accordance with the agreement,…
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Eleventh Circuit: Breach of AAA Rules Bars Compelling Arbitration
In Merritt Island Woodwerx, LLC v. Space Coast Credit Union [1], the United States Court of Appeals for the Eleventh Circuit had to decide whether an arbitration agreement referring to the American Arbitration Association’s Consumer Rules is binding when the business party fails to abide by the regulations of the arbitral institution.…
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Fourth Circuit: Consumer Arbitration and High Threshold for Unconscionability
In Meadows v. Cebridge Acquisition, LLC, the United States Court of Appeals for the Fourth Circuit had to decide whether an arbitration agreement included in an adhesive contract concluded with the consumer is unconscionable and, thus, unenforceable. The Fourth Circuit concluded that under the Federal Arbitration Act (“FAA”), the court’s inquiry…