Savings Clause

The Court ruled that the FAA forecloses courts from applying neutral state law defenses in the face of ambiguous contract language if doing so would result in allowing arbitration to proceed on a class-wide basis.

June 25, 2019

By NIWR

Lamps Plus, Inc. v. Varela, No. 17-988 (U.S. Apr. 24, 2019) Relevant Facts: An employee of Lamps Plus fell prey to a phishing scheme and accidentally released the tax […]

The Court rules that the National Labor Relations Act does not give employees a right to collective legal action, and that the FAA requires courts to enforce class, collective, and joint action bans in forced arbitration clauses in employment contracts.

June 25, 2019

By NIWR

Epic Systems, Corp. v. Lewis, 138 S. Ct. 1612 (2018) Relevant Facts: In granting certiorari, the U.S. Supreme Court consolidated three different cases with similar facts. All involved claims […]

The Court declares that arbitration is fundamentally bilateral in nature and rules that the FAA precludes states from barring enforcement of class waivers in arbitration clauses, even for unrelated law enforcement or public policy reasons.

June 25, 2019

By NIWR

AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011) Relevant Facts: Consumers who responded to an advertisement for a free phone were subsequently charged a fee on their bill, […]

The Court holds that when an arbitration provision contains a delegation clause a party specifically challenging forced arbitration on the grounds of unconscionability must also bring a separate specific challenge to the delegation provision in order to have their objections heard by a court, not an arbitrator.

June 25, 2019

By NIWR

Rent-A-Center, West, Inc., v. Jackson, 561 U.S. 63 (2010) Relevant Facts: After a retail salesman filed an employment discrimination claim against his former employer, the company moved to compel […]

The Court reaffirms that a challenge to the validity of a contract as a whole, but which fails to specifically challenge an arbitration clause within that contract, must be ordered into arbitration. This occurs even where the objecting party asserts an illegality defense claiming the entire contract is unlawful.

June 25, 2019

By NIWR

Buckeye Check Cashing, Inc. v. Cardegna, 546 U.S. 440 (2006) Relevant Facts: Victims of a predatory “payday” lending trap sued the lender, a check cashing company. The documents they […]

The Court holds that the rules governing an arbitration proceeding should be derived from the text of the contract and the intent of the parties. It further held that ambiguous contracts should be interpreted against the drafter, but that ambiguities in the scope of arbitrable issues should be decided in favor of arbitration.

June 25, 2019

By NIWR

Mastrobuono v. Shearson Lehman Hutton, 514 U.S. 52 (1995) Relevant Facts: A married couple sued their investment firm in federal court, alleging that their securities trading account had been […]

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Savings Clause

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