Court Upholds Class Action Waivers in Arbitration Clauses

Many contracts contain arbitration clauses. These clauses require the parties to submit to binding arbitration, rather than having their day in court. Typically, larger companies push for arbitration clauses. Part of the reason for a larger company to prefer an agreement to arbitrate is that such a clause may effectively waive an adverse party’s right to form a class and prosecute a class action.

In McKenzie Check Advance of Florida, LLC d/b/a National Cash Advance v. Betts, ____ So. 3d ____; 4D15-1893 (Fla. 4th DCA May 18, 2016) the court issued an opinion upholding such a provision. Reviewing a class action waiver in an arbitration clause, the court held that “the arbitration provision’s class action waiver is enforceable, and, therefore,” plaintiff would only be permitted to pursue an individual claim in arbitration.

The outcome of this case stems from a United States Supreme Court case, AT&T Mobility, LLC v. Concepion, 563 U.S. 333 (2011), in which the Supreme Court reasoned that “Requiring the availability of classwide arbitration interferes with fundamental attributes of arbitration and thus creates a scheme inconsistent with the FAA.”

It appears that a class action waiver contained within an arbitration clause may be enforceable, depending upon other issues concerning the particular contract or agreement. Please contact Van Ness Law Firm, PLC, if you would like to discuss such a provision.

In Memoriam of Thomas Moon, Esq.

Funeral Services will be held for Tom at Joseph A. Scarano Funeral Homes at 6970 Stirling Road, Hollywood, FL 33024 this Saturday, September 13, 2014 starting at 10:30AM with the viewing followed by the ceremony at 1:00PM

Van Ness Law Firm mourns the loss of Thomas Moon, Esq.

March 19, 1973 to September 8, 2014.

Thomas_Moon1 Thomas_Moon2 Thomas_Moon3 Thomas_Moon4 sam_0016 Thomas_Moon9 Thomas_Moon7 Thomas_Moon6Thomas_Moon10

Thomas_Moon27 Thomas_Moon26 Thomas_Moon25 Thomas_Moon24 Thomas_Moon23 Thomas_Moon22 Thomas_Moon21 Thomas_Moon20 Thomas_Moon19 Thomas_Moon18 Thomas_Moon16 Thomas_Moon17 Thomas_Moon15 Thomas_Moon14 Thomas_Moon13 Thomas_Moon12 Thomas_Moon11