California Supreme Court

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California Supreme Court overturns lower court FAA preemption decision

April 06, 2017

The California Supreme Court held that a pre-dispute arbitration agreement that waives the right to seek public injunctive relief is contrary to public policy and thus unenforceable under California law. In so holding, the court also held that the FAA does not preempt this rule of California law or require enforcement of the waiver provision.

U.S. Chamber files supplemental brief

February 06, 2017

Click here to view the brief.

U.S. Chamber supports upholding lower court FAA preemption decision

January 21, 2016

The Chamber filed an amicus brief before the California Supreme Court urging the court to uphold a lower court’s decision that held that the Broughton-Cruz rule is preempted by the Federal Arbitration Act (“FAA”). The brief argues that overturning this decision would frustrate the intent of contracting parties, undermine their existing agreements, and erode the benefits offered by arbitration as an alternative to litigation. More specifically, the brief explains that the FAA forbids states to declare particular claims categorically off limits to arbitration and prohibits states from insisting on the availability of broad “public” injunctions in arbitration.

Donald M. Falk, Andrew J. Pincus, and Archis A. Parasharami of Mayer Brown LLP served as co-counsel to the U.S Chamber of Commerce on behalf of the U.S. Chamber Litigation Center.

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